Moula Pay: the business payment option that’s interest-free for up to three months

By Cooper Langby · · 3 min read
Fact Checked
Advertiser disclosure

Hearing the words ‘interest-free’ is enough to grab the attention of many business owners across the country. And business lender, Moula will do just that with the announcement of its new payment platform, Moula Pay. 

Moula Pay allows merchants like wholesalers or business equipment manufacturers, to provide pre-approved businesses the opportunity to purchase up to $250,000 worth of goods and services at other businesses. Merchants are paid upfront by Moula, eliminating the pain of chasing down payments. 

On the other side of the coin, businesses get up to 3 months free from interest and repayments and up to 12 months to pay off their purchases. an interest rate of 3% per month will be applied against your daily outstanding principal balance across the month. It’s hoped that this will improve cashflow for business customers. 

Businesses will be able to use Moula Pay to: 

- Purchase stock to sell to customers 

- Buy business equipment to help your business grow 

- Pay invoices without disrupting your cash flow 

- Buy materials for pressing projects 

“We know how hard it is for Australian businesses to access funding to support day-to-day operations and there’s opportunities on both sides of the merchant and business customer relationship with Moula Pay,” said Moula CEO, Aris Allegos. 

“Merchants are able to outsource their credit management functions more cost-effectively than typically administering payment terms in-house. They’ve also opened the door to the significant pool of SMEs seeking to spend more on business purchases if they had additional funds and longer to repay.” 

RELATED: Moula takes challenge to banks with $250 million business loans boost

According to a quarterly study by Moula of 500 business owners, 65% of businesses don’t pay merchants and suppliers on time, and 64% would prefer to pay for large business purchases over 3+ months.

Allegos believes Moula Pay will bridge the payment gap between businesses and their suppliers.

“We’ve evolved our data-driven business lending expertise creating Moula Pay to address SME payments pain points, effectively doubling support for good Aussie businesses by backing merchants and simultaneously getting behind their good business customers as well,” he said. 

How do I sign up to Moula Pay?

First things first, in order to apply for Moula Pay, you’ll need to:

- Have an active Australian Business Number (ABN) or Australian Company Number (ACN)

- $2,500 monthly sales

- Have been in business for at least 6 months 

Then once you apply through the Moula website, the lender will assess your business within 24 hours and decide what spend limit they’re willing to offer you. 

How do I use Moula Pay at checkout? 

Just like using your business credit card! When you’re purchasing goods, simply request Moula Pay as your payment method or scan the QR code. You’ll receive an instant notification to verify the payment each time you use Moula Pay and you need to do this before the purchase can be completed.

Moula then pays the Merchant directly, while you’ll have 12 months to repay your purchases. 

Can I make additional repayments? 

Absolutely! According to the Moula website, you’ll be able to “repay early at any time, with no penalty or charges”. 

What fees does Moula Pay charge?

Just a $12 fee, only if you have an amount owing on your Moula Pay account at the end of a billing cycle. This fee will be direct debited from your nominated bank account at the end of that billing cycle. Note, for all new Moula Pay accounts, the first billing cycle is fee-free. The $12 fee is applicable from the second billing cycle onwards.

Moula Pay doesn’t charge set-up or establishment fees, neither do they charge direct debit fees or penalties if you repay early. If you pay off the amount owing before the end of the billing cycle, they won't charge you the $12 account fee, either. Moula Pay keeps you in control.

Want to check out some other Moula lending products? You can find them by heading over to our business loan comparison tool. 

Compare business loans

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 85 products
Last updated 15 December 2024Important disclosures

Refine the list of business loans

Let’s help find you a great business loan...
  • About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

    Interest Rate
    Upfront Fee
    Funding speed
    from 9%
    -
    Within same day
    Go to site
    Details
  • About Prospa
    Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

    Interest Rate
    Upfront Fee
    Funding speed
    Interest rates vary based on risk.
    3.5%
    from 24 hours
    Go to site
    Details
  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Go to site
    Details
  • About Westpac
    Fixed Rate Unsecured Business Loan

    Interest Rate
    Upfront Fee
    Funding speed
    -
    On application
    Varies
    Find out more
    Details
  • About NAB
    Business Overdraft

    Interest Rate
    Upfront Fee
    Funding speed
    10.47% p.a. variable
    Negotiable
    Varies
    Find out more
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.