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. 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 or line of credit to help business owners kickstart their business after a significant revenue loss due to COVID restrictions. You can take out this loan for up to 12 months and borrow up to $500,000, 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.
To apply you need to provide
Your business needs to be in operation for at least 6 months.
We will conduct a credit assessment with your affordability being calculated based on your business’s pre- and post COVID restrictions and assess it in consideration of how much your revenue has been impacted. The maximum amount you can borrow with the Lumi Kickstarter Loan is capped at $500,000.
It can be either secured or unsecured.
Yes, you can take a Lumi Kickstarter either as a term loan or line of credit.
You can take a Lumi Kickstarter loan from 3-12 month terms. However, you can potentially refinance to a standard term loan or line of credit later if you meet the credit criteria.
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 apply for.
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-restriction revenue, prior to July 2021, has now seen a significant decrease in revenue due to COVID restrictions. That business owner’s affordability would be reassessed taking into consideration both their post-restrictions recovery, and their previous sales history. Our restaurant owner might not get the full $50,000 loan they would have pre-restrictions, but we will try our best to get as close as we can.
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 scenario is an example only and does 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: