Need working capital? Here's another source

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Need working capital? Here's another source

Online lender Moula can make lending decisions in hours and when loans are approved funds usually reach the lender within 24 hours after completing the application.

When online lender Moula opened its virtual doors a year ago, it only provided working capital loans to online businesses.

The basic model was to take a view of an applicant's creditworthiness by examining online data: notably, eBay, Bigcommerce and Magento transactions.

Moula has a mechanism in place to access a business's transactions with any of more than 50 Australian banks, and now accepts applications from any SME in the country.

The company's pitch is that this automated access to online data - including conventional credit checks - allows it to make lending decisions in a matter of hours. When loans are approved, the funds usually reach the lender within 24 hours after completing the application.

Moula has raised its maximum loan amount to $50,000.

The interest rate is 1 percent per fortnight, and loans must be repaid in equal instalments over no more than six months. According to the company, this means a six-month $10,000 loan costs "a little over $700" if all repayments are made on time.

No fees or charges other than interest are applied if the terms are met, and early repayments are accepted as long as they are no less than $1,000. But if you don't pay on time, direct debit dishonour fees, late payment additional interest and a loan extension fee may be charged.

"Moula is driven by ethical lending standards – we're all about transparent pricing with no hidden fees or costs. Moula is home grown technology, enabling ongoing customisation and integration unique to the Australian SME instead of a 'one size fits all' approach," said co-founder Aris Allegos.

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