At Lumi we understand that things haven’t exactly gone as planned since COVID. But we know what all of you amazing businesses are capable of. Therefore, we have launched Lumi Kickstarter, a dedicated COVID recovery loan to help businesses that have been severely impacted get back on track after lockdown. Sounds too good to be true?
You might have applied and consequently been declined for a traditional business loan since you didn’t meet the usual revenue criteria. And now you are wondering how Lumi can offer such a COVID Recovery loan when other lenders can’t?
Well, the answer is simple - we are committed to adapting our products to the ever changing needs of our small business customers. And that’s what we did.
It’s a business term loan to help business owners kickstart their business after lockdown. You can take out this loan for up to 12 months and borrow up to $50,000, which is subject to your credit assessment.
Eligibility for the Lumi Kickstarter Loan is subject to its general Terms & Conditions. A business will need to prove the impact of the recent lockdown on their revenue and provide a clear plan for how funds can help them get back on track.
Due to the nature of lockdown there are certain industries that have been severely affected including hospitality, personal services, gyms & indoor recreation, caravan parks, camping grounds and wedding related services.
To apply you need to provide
Your business needs to be in operation for at least 2 years.
It can be either secured or unsecured.
No, the Lumi Kickstarter is only available for new term loans.
For a maximum of 12 months. You will get the option to refinance your loan to a standard term loan after you have made at least 4 consecutive repayments. This also means that you might then qualify for a higher loan amount.
At Lumi we follow the principles of risk-based pricing. This means that the interest rate is calculated as part of your credit assessment and also depends on the loan amount and term you are applying for.
We will conduct a credit assessment with your affordability being calculated based on your business’ pre-lockdown revenue. This means that if your business would have qualified for a Lumi loan pre-lockdown, then your affordability will be adapted based on how much your revenue has decreased during lockdown. The maximum amount you can borrow with the Lumi Kickstarter Loan is capped at $50,000.
Check out how we assess your business’s affordability based on your pre-lockdown revenue and then recalculate it to reflect your loss in revenue during lockdown.
A restaurant owner who gets approved for a $50,000 loan, based on their pre-lockdown revenue, prior to July 2021, has now seen a 60% decrease in revenue due lockdown restrictions. That business owner’s affordability would be reassessed at 75% of their monthly pre-lockdown revenue, meaning they would qualify for $37,500.
Good news is that they can then refinance their loan once they have made their first 4 payments based on their latest revenue numbers.
A gym owner gets approved for $30,000 according to their pre-lockdown revenue. Because they registered a 80% decrease in revenue during lockdown, they would now qualify at 50% of their original affordability, meaning they could get up to $15,000. Again, they can then top up their loan once they’re back on track and have made their first 4 payments.
A hairdresser, who would have previously qualified for $80,000, but had no revenue coming in during lockdown, could still get a Lumi Kickstarter loan at 50% of their pre-lockdown affordability. So, they could get up to $40,000 and then refinance at a later stage to increase the loan if needed.
Affordability assessment is subject to credit criteria at the full discretion of Lumi. The above scenarios are examples only and do not guarantee a loan approval. Every business is assessed based on their respective credit and risk profile. Loan amount and terms can vary depending on the business’s revenue, industry and credit check.
Terms & Conditions: