Our review of Lumi
Lumi is an Australian-owned small-business lending specialist offering secured and unsecured business loans between $5,000 and $200,000 on flexible terms. Loans can be approved within two hours - one of the fastest approval times for small business loan in the industry - with funds delivered on the same business day.
Lumi is a member of FinTech Australia and the Australian Finance Industry Association.
|Suitable if your business:||Suitable for businesses considering:|
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Lumi Business Loan Overview
Lumi's business loans range from $5,000 to $200,000. The funds can be used for almost any legitimate business purposes. Small business loans provided by Lumi may be suitable for your business if you:
- Need access to funds quickly
- Have a less-than-perfect credit history
- Do not have valuable assets to offer as security
- Own a business operating between six months and two years
- Run a seasonal business
Secured and unsecured business loans cannot be used for personal purposes.
Lumi does not provide details on its interest rates, however an example calculation on loan repayments featured by the lender places example loan rates around 19%. For example, borrowing $50,000 over a 12-month term equates to $1,172 weekly repayments using the example calculation.
Lumi applies interest rates by considering:
- The borrower's profile
- The size of the loan amount
- The term of the loan
You can apply for a business loan with Lumi online:
- Short application process
- Approvals within two hours
- 2.5% establishment fee
- Weekly repayment schedule
- No penalties for early repayment
One benefit of using Lumi is that there are no hidden fees or penalties for early repayment. Payments can be made weekly over a term of three to 18 months, with the total loan repayment amount calculated and presented to the borrower at the start of the loan agreement.
Lumi Small Business Loan Review
|Loan Feature||Loan Details|
|Approval Time||2 hours|
|Minimum loan amount||$5,000|
|Maximum loan amount||$200,000|
|Minimum loan term||3 months|
|Maximum loan term||18 months|
|Collateral Requirements||Not required for loans up to $100,000|
|Interest rate||Based on the amount of the loan as well as the repayment period|
|Fees||2.5% establishment fee|
You can read our guide if you wish to learn more about Small Business Loans in Australia.
How to apply for a Lumi Business Loan
You can apply for a Lumi business loan online or over the phone. Lumi's approval speed on loan applications is one of the fastest in Australia; a loan could be approved and funds released in two hours.
Lumi Small Business Loans Approval Criteria
|Minimum monthly business turnover||$5,000|
|Minimum trading period||6 months|
When applying for a business loan with Lumi for less than $100,000, you will need:
- An acceptable form of ID (Driver Licence, Passport)
- An active ABN or ACN
- Six months of bank statements
- Bank State Branch (BSB) and account number
When applying for a business loan with Lumi for more than $100,000, you will need to provide collateral as security over the larger loan amount.
How much does a Lumi Business Loan Cost?
The cost of a Lumi Business Loan will include:
- The principal amount - between $5,000 and $200,000
- Interest applied to the principal - based on the amount of the loan as well as the repayment period
- Fees - an establishment fee of 2.5%
Lumi Business Loan Example:
- A business applies for finance on a 12-month term
- Lumi approves a business loan amount of $100,000
- An establishment fee of 2.5% is applied to the loan principal
- Lumi applies an upfront amount of interest specific to the application
- The business repays the total loan amount over an agreed term between 3 and 18 months
- Repayments are made weekly
Want to compare business loan repayments? You can use our business loan calculator.
Money.com.au Lumi Summary
Lumi offers unsecured business loans up to $100,000 and secured business loans up to $200,000. Customers can choose between unsecured and secured arrangements through a simple online application process:
- Create an account with Lumi
- Enter in details about the loan you want to apply for
- Enter in details about your business
Lumi lends to small and medium-sized enterprises across multiple industries. Its business loans can be used for almost any business purpose, and are ideal for business owners needing same-day access to significant finance without providing collateral.
Lumi aims to make small business loan fast, flexible, and fully transparent:
- Lumi has one of the fastest loan-approval speeds in the industry; some loans are approved and funded in less than two hours
- Lumi offers unsecured loans up to $100,000. This provides access to short-term business finance when business owners cannot supply collateral - or choose not to.
- Lumi can provide loans to borrowers with bad credit. The lender assesses each application based on the financials of the company instead of the applicant's credit rating
- There are no hidden fees or charges, and an up-front total loan cost is calculated in place of an annualised interest rate
Lumi business loans are ideal for borrowers who need same-day access to business funds, and are either unable to offer collateral on loan amounts up to $100,000, or require an up-front total cost to accurately calculate their weekly repayments.
Significantly, the fast approval time on its business loans indicates the company is consistently invested in improving its services, and committed to making business loans available to a wide range of potential borrowers.
In May 2019, Lumi completed an $8 million capital raise, followed by its first television commercial in August, to announce a change to its offering:
- Lumi extended its maximum loan amount to $200,000
- Lumi extended its maximum loan term from 12 months to 18 months
Lumi appears to invest in both its customers and in-house team, offering larger loan amounts and longer terms to provide greater flexibility to borrowers, while aiming to improve its own technology and decrease the amount of time and effort required by borrowers to secure funding.
Lumi is a signatory and supporter of AFIA's Online Small Business Code of Lending Practice, and predominantly works with small-business owners in the hospitality, design, automotive, manufacturing, and retail sectors.