Payment Pause’ lets borrowers pause repayments for four weeks, interest free, so they can focus on growing their business. Australian financial technology company and leading alternative lender Lumi, has announced its new Lumi Payment Pause feature.
The feature allows small business owners with Lumi’s term business loan products to take a payment holiday for four weeks, no questions asked and with no interest charged or accrued.
The first feature of its kind in Australia, the Lumi Payment Pause is designed to help businesses take advantage of the nation’s economic recovery.
It is not a replacement for those businesses that have experienced hardship as a result of the pandemic, which Lumi is committed to supporting with bespoke repayment plans via its dedicated hardship management team.
The move comes following Lumi’s announcement earlier this year that it has secured a large debt facility to fuel its continued growth. The company doubled its maximum small business loan amount to $300,000 and plans to double its headcount over the next 12 months.
Lumi CEO and founder Yanir Yakutiel said, “Today we announce a first for our industry – the ability to hit pause. We are making it a simple, easy-to-access feature on your Lumi account that comes as a standard option for all our new term loans.
You just hit ‘Payment Pause’ and you’re done, no questions asked. We designed this feature after consultation with our customers, who expressed they often wanted to make a significant change to their business such as a refurbishment or redesign, but were worried about the cash flow implications of that move.
This year is one of recovery, and we want to give our customers the confidence they need to make the most of 2021.
Unlike payment holidays granted by the big banks during the pandemic for mortgagees, we’re pausing both the interest as well as the repayments when you hit Payment Pause.
The Lumi Payment Pause feature can be used once per the lifetime of each loan product. At a time when considerable consolidation is happening in the Australian fintech space, Lumi is proud to show that financial innovation is alive and well in Australia.
Mr Yakutiel continued “Our mission is to be the fastest, most flexible and fair lender in the market. The Lumi Payment Pause is a unique proposition that helps us deliver on that promise to our customers, but we won’t stop there.”
Fintech businesses like Lumi have an opportunity to support the post-COVID economic recovery, because there is no recovery without our SME sector gaining back its momentum.
Whether it’s through building better systems, more responsive customer service or more flexible products, fintechs need to invest now and propel our industry forward.
There won’t be a better time to demonstrate the enormous value we bring to the recovery effort through supporting those who have a vision for a business and have a go.
Lumi offers small business loans of up to $300,000 with term lengths up to three years, as well as business lines of credit up to $300,000 to help small businesses manage cash flow.