Moula Review (2021)

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RATED:

65.0

Moula offers business loans to small and medium business enterprises (SME) from $5,000 to $250,000, making the lender an excellent choice if your business needs a small or large injection of capital. With a repayment period of 12 to 24 months, Moula gives your business has a generous window to return the loan.

In addition to short term business loans, Moula also offers Moula Pay. A ‘buy now, pay later’ and line of credit hybrid that will suit businesses that need extra flexibility to pay operating purchases.

Applications online only take 10 minutes. All you need to do is link your banking or application data when you apply, and Moula will complete their loan assessment within 48 hours. Once Moula approves the loan, your business can receive funding within 24 hours. Moula pride themselves on full transparency, as part of the loan offer Moula can provide you with a SMART Box™ statement which will allow you to see all your costs before you accept the loan.

🗺️ ProductsBusiness Loans
Moula Pay
💰Funding Amount$5,000 to $250,000
📊 Loan Terms12 to 24 Months
💰 Min. Trading Period6 Months
💰 Min. Trading Turnover$5,000 per month
🛍️ Unsecured/Secured Unsecured
💳 Funding SpeedApproval with 24 hours
Funding 24 hours after approval

Moula Logo with words Moula review under it

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Loan ProductsBusiness LoanMoula Pay
Loan Terms & Funding Size
💰 Loan Amount$5,000 to $250,000Up to $250,000
⏳ Loan Length12 to 24 months12 months
📆Payment scheduleFortnightlyMonthly
💳 Line of Credit Option?✔️
Loan Costs
💸Fees (excl. interest)No repayment fees for first 3-6 months
2% Origination fee
First 3 Months interest free
$149 Annual fee after 12 months
﹪Interest Rate TypeAnnual Percentage Rate
(15% to 35%)
3% per month against daily outstanding balance across the month
🔓 Unsecured Loans?✔️✔️
👍 Early Repayment✔️ (no fee or penalty costs)✔️ (no fee or penalty costs)
Loan Qualification
🎓 Qualification BasicsABN or ACN
GST Registration If annual turnover > $75,000
ABN or ACN
GST Registration If annual turnover > $75,000
🛍️ Min. Trading Qualification6 Months6 Months
📅 Min. Turnover Qualification$5,000 a month$5,000 a month
🗎 Low Doc Loans✔️ Under $100,000✔️ Under $100,000
😕 Bad Credit OK?Min. credit score of 550 suggestedMin. credit score of 550 suggested
Approval & Funding Speed
🏍 Fast Online Application✔️✔️
💨 Funding SpeedApproval within 24 hours
Funding with 24 hours of approval
Approval within 24 hours
Funding with 24 hours of approval

Moula Pros and Cons

Pros

  • No hidden fees, No early repayment fees
  • Low doc applications for under $100,000
  • The option of no repayment for 3 or 6 months
  • Transparent lender, SMART Box™ loan statement
  • Loans best for: All industries

Cons

  • Not for start-ups
  • No personal loans
  • Maximum loan amount limited to $250,000
  • Business with credit rating under 550 may struggles

Moula Review - Products Available

Moula has 2 products available, which product you need will depend on your funding requirements. These products are:

  1. Short-term business loans
  2. Moula pay

Moula Short Term Business Loans

A business loan is an agreement with a lender for a lump sum capital advance that will be paid back with interest to an agreed schedule.

Being a non-bank lender, Moula is a good option for a business loan, as the banks have tight criteria for loans or are slow to approve loans.

Unlike banks, Moula has a low criteria threshold to qualify for a loan. Applications can be done in under 10 minutes, with little paperwork. Best of all you will know the success of the application within one business day. This allows you to focus on running the business than worrying about finding the funds you need.

What is Moula Pay

Moula Pay is a somewhere between a ‘buy now pay later’ (BPNL) and line of credit product.

With Moula Pay, the lender will ‘pre-approve’ a total amount you can loan. You can then use these funds with any merchant that will accept Moula Pay.

Unlike a business loan where you pay interest for the entire loan from day 1, Moula Pay requires you only pay interest on fund your drawdown.

As you only pay interest on the funds you draw from the credit facility, Moula Pay can save you costs. Moula Pay therefore a gives you business flexibility when you don’t know how much funding you need for purchases or when you will need funding.

Moula Short Term Business Loan Qualification

Minimum Time Business Operating

Minimum Time In Business

Min. 6 Months

Minimum Turnover

Minimum Turnover

Min. $5,000 per month

Credit History

Credit History

Min credit score – 550
(Indicative)

Other

Other

GST registration if turnover above $75,000
Valid ABN or ACN

Expect to need a minimum credit score of 550 for your application to be successful. If your business has outstanding defaults, then you should expect a decline.

While the loan is unsecured, the business owner will need to provide a personal guarantee for the loan. Sole traders are exempt from the need to provide a personal guarantee.

Moula Short Term Business Loan Funding And Loan Terms

Loan Amount

Loan Amount

$5,000 to $250,000

Term Length

Term Length

12 to 24 Months

Payment Schedule

Payment Schedule

Fortnightly

Low Doc Loans

Low Doc Loans

Under $100,000

Unsecured-Secured

Unsecured Loans

Unsecured

Prospa business loans and lines of credit have different loan terms. If you are looking for large loans, then a business loan is your better choice. With this loan, you can borrow up to $300,000 with up to 3 years to repay the loan.

If you need less than $100,000, then you need to decide how you wish to use the loan. Depending on your needs, a line of credit may be a better choice.

With a loan of up to $250,000 and a repayment window of 12 to 24 months, Moula term loans should suit most businesses. A repayment-free period of up to 6 months is available on request.

If your loan is under $100,000, then you will only need to provide the minimum paperwork. Loans above $100,000 may require additional paperwork.

Moula Short Term Business Loan Costs And Fees

Origination Fee

Origination Fee

2% Origination fee

Interest Rate

Interest Rate

Annual Percentage Rate (APR)
(14.95% to 34.95%) on the opening balance each fortnight
Principle + Interest

Other Costs

Other Features

3-6 month repayment free option
Pay same each fornight

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

Moula is one of the more transparent lenders with their costs. Moula advertises an annual percentage rate (APR) costs of 15% to 35% per annum. Moula requires repayments on a fortnightly basis, so this equates to an APR of 0.57% to 1.34% per fortnight.

Moula calculates the interest you pay using the opening balance at the start of each fortnight and the amount that you pay is the same each period until the loan is settled.

Moula is a signatory of the AFIA industry code of conduct and SMART Box™ statement initiative. If you request a SMART Box™ then you will receive a loan offer in form of statement which will help you compare loan offers between different lenders objectively. SMART Box™ uses metrics to help you understand your costs and loan terms with lenders.

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SMART BOX is the new way to compare business loans. It stands for:

Straightforward Metric Around Rate and Total cost and shows key metrics so you can compare the cost of capital. Because when it comes to business loans, it pays to comapre.

What is Moula Pay

Moula Pay Qualification

Minimum Time Business Operating

Minimum Time Business

Min. 6 Months

Minimum Turnover

Minimum Turnover

Min. $5,000 per month

Credit History

Credit History

Min. credit score – 550
(Indicative)

Other

Other

GST registration if turnover above $75,000
Valid ABN or ACN

To be eligible for Moula Pay, your business will need at least 6 months of trading history and have $5,000 in revenue.

Moula doesn’t publish their minimum credit score as this will vary by factors such as:

  • The financial health of the business and
  • The size of the credit facility

Fast Business Loans checked with the Moula help desk and they indicated your business credit score should be around 550 or higher.

Moula Pay Funding And Loan Terms:

Loan Amount

Loan Amount

Up to $250,000

Term Length

Term Length

12 Months
(per transaction)

Payment Schedule

Payment Schedule

Monthly

Low Doc Loans

Low Doc Loans

Under $100,000

Unsecured-Secured

Unsecured Loans

Unsecured

Your Moula Pay credit facility can be as high as $250,000 and you can access this facility as many times as you like as long as funds remain.

Each time you use Moula Pay, you will have 12 months to repay that transaction. This means each Moula Pay transaction will have its own 12-month schedule.

To help you manage your payments, your Moula account includes a customer dashboard so you can see your repayment schedule at all time.

Moula Pay Fees And Costs

Origination Fee

Fees

$149 annual fee after 12 months

Interest Rate

Interest Rate

3% per month against daily outstanding principal across the month

Other Costs

Other Features

First 3 months interest and repayment free
No min. for each loan

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

Moula Pay in many aspects is like a credit card or a ‘buy now, pay later’ product, this means you will have similar costs.

Moula Pay includes a $149 annual fee after 1 year and an interest rate of 3% per month which is calculated based on the daily outstanding principal across the month.

The first 3 months of each Moula Pay transaction are interest and repayment free. This means if you pay in the first 3 months, then you will pay no interest whatsoever.

Another way to save on costs is to make early payments as there are no fees or penalties. If you do this, you will only pay interest for the days with an outstanding loan balance. In addition to early payment, Moula Pay also allows pre-payment which can be another way to reduce your costs.

Moula Ease Of Application

Moula’s application processes take less than 10 minutes to complete as you provide Moula link your bank or accounting details through your application.

The application process comprises 5 steps.

  1. Start application
  2. Business details
  3. Personal information
  4. Business data
  5. Final steps

To receive a Moula business loan, you will need to provide business financials. Linking your data allows Moula to assess your business for a loan quickly.

You can link your business financials by linking any of the following

  • Xero
  • MYOB AccountRight
  • Intuit QuickBooks
  • Bank account
  • eBay

While Moula requires only one of these services, the more information you provide, the better Moula can understand your business.

Note: There is no option to upload files of your financial statements should you wish to.

Moula Funding Speed

Online Application

Online Application

Under 10 minutes

Approval

Approval

Within 24 hours of application

Funding

Funding

Within 24 hours of signing agreement

The Moula loan application process takes less than 10 minutes. Moula will contact you within 24 hours, letting you know how much they can lend you.  You will receive your funds within the next 24 of signing the loan agreement.

What Can You Use A Moula Loan For?

Moula allows you to use the loan for any of the following business purposes:

  • Overheads
  • Purchase of stock and inventory
  • Manage cash flow
  • Purchase business-related goods and equipment
  • Purchase materials
  • Pay invoice and expenses

Moula requires you to provide a reason, as the loan cannot be for personal or non-business purposes.

Repayment Terms

  1. Fortnightly repayment
  2. The repayment amounts each month are the same. Loan terms will vary according to the length of the loan, repayment instalment plan and interest rate.

Moula term loan does not allow redraws of principal amounts.

Moula Customer Service

Moula Pay is like a Buy Now, Pay Later (BNPL) loan.  With this product, Moula gives you a credit limit which you can use with any merchant that accepts Moula Pay to make business purchases. This can be a good option when you don’t know what funding you will need and need loan flexibility.

Moula Pay works much like a line of credit in that each time you use Moula Pay, you are taking out a new loan. Moula pays the merchant and you pay back the loan to Moula. Credit can be up to $250,000 and you will have 12 months to repay the loan.

Moula Customer Reviews – Trustpilot

Moula is one of the most reviewed small business lenders in the market. Trustpilot gives Moula a score of 4.9 out of 5 from 1525 which an excellent achievement. Comment generally have high praise of Moulas customer service and the level of professionalism, they provide.

Moula-TrustPilot-1024x170

Moula customer service

Customer service is available during business hours through email and phone. here is no live chat available through their website. Fast Business Loans sent Moula some emails to find out more information about them and found their replies timely and helpful. If you do this, you should also expect that Moula will call you, each day for a week or two even if you ignore the calls as we did.

Our Moula Review Conclusion

Fast Business Loans are big fans of this financial services lender. We like the large loans that are available with longer repayment periods than most lenders will provide. We also like the lender’s commitment to transparency through its process.  Moula is one of the few lenders to advertise an interest rate range for loans on their website, have no hidden fees and as a bonus are even part of the SmartBox program. Which means you can compare them with other lenders that participate in the program.

About Moula

Since 2013, Moula has been helping Australian small business owners access essential finance to maintain and grow operations. Moula is a success story in Australia in helping SME’s as they have been able to adjust their business model to meet the growing demand for working capital from businesses. IN 2019, this Fintech lender increased the available credit to SME by 250 million and modified loan limits from $250,000 to $500,000 and 24 to 36 months for repayment.  A response to the modern needs to small business and the difficulty they have in getting loans of significant size form banks.