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SERVICES OFFERED BY LOANBUILDER
LoanBuilder specializes in providing short-term business loans at an affordable cost. Unlike many other business financiers, LoanBuilder does not charge an origination fee or any other upfront fees, and has minimal borrower requirements. This makes it stand out in the market.
HOW IS LOANBUILDER DIFFERENT FROM PAYPAL LOAN?
LoanBuilder and PayPal Business Loans are the same service, with the same application questionnaire. The service may be referred to as PayPal Business Loan or LoanBuilder depending on the stage of the application. While at one point, there were plans to phase out the LoanBuilder brand name, it has not yet been implemented.
HOW IS LOANBUILDER DIFFERENT FROM PAYPAL WORKING CAPITAL?
PayPal Working Capital is another business loan service offered by the parent company of LoanBuilder, PayPal. Both services provide short-term business loans. PayPal Working Capital is only available to PayPal sellers, while LoanBuilder can be used by most businesses. Additionally, LoanBuilder offers higher borrowing amounts and the amount is based on the entire revenue of the business, not just PayPal sales.
LOANBUILDER BORROWER REQUIREMENTS
To qualify for a LoanBuilder loan, the business must meet certain minimum requirements and must not be in an ineligible industry. The borrower qualifications for LoanBuilder are relatively lenient, but a list of industries that are not eligible for the loan includes attorneys, nonprofits, financial services, and others. The minimum requirements that a business must meet to have a good chance of qualifying for a LoanBuilder loan are:
| Time In Business: | 9 months |
| Business Revenue: | $42,000 per year |
| Personal Credit Score: | 620 |
Your business must also be based in the United States. Additionally, you must not have any active bankruptcies.
LOANBUILDER INTEREST RATES & FEES
Here are the current rates and fees for LoanBuilder loans:
Borrowing Amount: $5,000-$500,000 Term Length: 13-52 weeks Borrowing Fee: One-time fee of 2.9%-18.72% of the borrowing amount Origination Fee: None Effective APR: Learn more Collateral: UCC blanket lien
LoanBuilder offers loans of up to $500,000 to qualified borrowers at one-time fees ranging from 2.9% to 18.72% of the borrowing amount. A blanket lien is required as a condition of receiving a loan, but no specific collateral is needed. The repayment term is relatively short with a maximum term of 52 weeks, which makes for large weekly payments, but it is not a long-term financing option. The cost of the loan is expressed as a Total Interest Percentage and the borrower fee is determined by multiplying the Total Interest Percentage by the borrowing amount. There are no origination fees and the only fee charged is the fixed borrowing fee. Repayment is done automatically via an automated clearing house (ACH) each week, which is less frequent than many competitors. Early payments can be made without penalty but will not result in any monetary benefits.
APPLICATION PROCESS
Rating: Excellent
LoanBuilder has a streamlined and simple application process. The first step is to fill out an online prequalification form, which can be completed in five to ten minutes. The form can be completed as a guest or by signing in with a PayPal account. The application is divided into five steps: Contact Info, Personal Info, Business Location, Business Details, and Verify Identity. Each step requires specific information, such as contact details, business information, and personal identification. The final step, Verify Identity, involves providing information such as date of birth, SSN, and federal tax ID, which will be used to perform a soft pull on your credit without affecting your personal credit score.
WHAT HAPPENS AFTER I APPLY ONLINE?
Upon submitting the application, LoanBuilder will review the information provided and determine if the business is eligible for the loan. The eligibility is based on the financial health of the business and the personal credit history of the applicant. If pre-approved, you will be provided with estimated rates and fees, and the ability to customize the borrowing amount and term length. The next step is to complete a full application, which may require additional documentation such as recent bank statements. This process includes a hard credit check, which may slightly affect your credit score. Upon approval, you will need to electronically sign the loan contract before receiving the funds.
I GOT A LOAN FROM LOANBUILDER. NOW WHAT?
Upon approval of the loan, the lender WebBank will deposit the loan funds directly into your bank account. The transfer of funds typically takes place the next business day if the loan is approved before 5 PM Eastern Daylight Time (EDT) from Monday to Friday. If the loan is approved after 5 PM or during the weekend, the transfer may take a bit longer. The repayment schedule is automatic, with payments deducted every week, on a day of the week that you choose.
LOANBUILDER DECLINED MY LOAN. NOW WHAT?
If your loan application is declined by LoanBuilder, you will be informed right away, and you will also receive an email with more information and the reasons for the decline a few days later. If you do not qualify for a loan, you can reapply after 30 days have passed.
SALES & ADVERTISING TRANSPARENCY
LoanBuilder has limited the amount of information provided to potential borrowers over the past two years. Although there is still an FAQ section that gives general information about how the company operates, it does not provide detailed information about rates and terms. The information available on the PayPal Business Loan page is similar but presented in a different format. While it is possible to check your eligibility quickly by completing a questionnaire, this will require you to submit your contact information.
CUSTOMER SERVICE & TECHNICAL SUPPORT
In summary, LoanBuilder offers short-term business loans with relatively low costs and relaxed borrower requirements. They also offer a quick and easy application process, automatic repayment, and good customer service. However, they do not provide detailed information about rates and terms upfront, and there is no live chat option for customer support. Overall, it is considered a good option for those who meet the minimum requirements and are looking for a short-term financing option.
NEGATIVE REVIEWS & COMPLAINTS
In summary, LoanBuilder has faced some complaints in the past, mainly regarding the complexity of the application process, confusing terms and short repayment terms. Some customers have also found the service inflexible and have faced difficulties repaying during the COVID-19 pandemic. Despite these complaints, LoanBuilder has a good rating on Trustpilot and has taken steps to improve its customer service experience. It’s worth noting that some of these complaints may come from the fact that LoanBuilder is a product of PayPal, and it may be difficult to distinguish complaints specific to the loan service from those related to PayPal’s other operations. Additionally, some of these complaints may be due to misunderstanding of short-term loan terminology and repayment schedules.
POSITIVE REVIEWS & TESTIMONIALS
Overall, LoanBuilder has a good reputation for providing fast and easy access to short-term business loans, with transparent fees and helpful customer service. However, some customers have reported issues with unexpected roadblocks, confusing terms, and inflexible repayment terms. Additionally, some customers have reported difficulties repaying during the COVID-19 pandemic. It is important to research and compare different loan options and understand the terms and fees before making a decision.
FINAL VERDICT
Overall, LoanBuilder offers a fast and easy application process for short-term business loans. It has a transparent fee structure and offers weekly repayment terms which is more flexible than most business loan options. However, it may not be suitable for businesses looking for a long-term financing option and some borrowers may have concerns about the inflexibility of terms and the short repayment period. Despite this, it is a good option to consider if you need a quick infusion of capital and have trouble qualifying for financing elsewhere.