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

By Cooper Langby · · 3 min read
Fact Checked
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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. 

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Last updated 30 October 2024Important disclosures

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