LoanBuilder 2025 Review
LoanBuilder By PayPal Business Loan Review
By Kiah Treece
LoanBuilder is a business lending service owned by PayPal. Loans are reportedly available between $5,000 and $50,000, and borrowers pay a one-time, upfront fee instead of a monthly interest rate. Qualification requirements are more accessible than those imposed by many business lenders and the application process is more streamlined. Loans are repaid on a weekly basis, making the lender a good choice for borrowers with sufficient cash flow.
LoanBuilder Pros and Cons
| Pros | Cons |
|---|---|
| Low credit score requirement | Payments are due weekly |
| No origination or late payment fees | Requires a personal guarantee |
| Quick application process | No discounts for repaying early |
| Fast loan funding | No long-term financing options available |
LoanBuilder business loan overview
Year Founded: 2006 Credit Score Required: 620 BBB Rating: Not rated Minimum Loan Amount: $5,000 Max Loan Amount: $500,000 Minimum APR: 2.9% (one-time borrowing fee) Maximum APR: 18.72% (one-time borrowing fee) Minimum Monthly Revenue: $3,500 ($42,000 per year) Trustpilot Rating: 4.4 stars Trustpilot Reviews: 5,343
How does LoanBuilder work?
LoanBuilder is a fintech company owned by PayPal that offers loans to small business owners for between $5,000 and $50,000. Loans are underwritten by WebBank, Member FDIC, and serviced by PayPal subsidiary Swift Financial, LLC. Even so, getting a loan does not require having a PayPal Business account. The lender deposits funds into the borrower’s checking account, and then payments are deducted directly from the same account on a weekly basis.
Like many business loans, a personal guarantee is required. Instead of charging an interest rate on the loan balance—as is the case with most traditional business loans—LoanBuilder charges a one-time borrowing fee, reportedly between 2.9% and 18.72% of the loan amount. This fee is charged upfront, and borrowers do not get a discount for paying off their loans early.
LoanBuilder business loan features
LoanBuilder offers small business owners access to flexible business loans with fast funding speeds. These are the main features of a LoanBuilder business loan:
- Borrowing limits: LoanBuilder business loans are reportedly available from $5,000 to $500,000. However, the company does not publish loan amounts on its website.
- Repayment terms: Weekly payments are automatically withdrawn from the borrower’s business bank account where the proceeds were deposited. Borrowers can choose the day of the week the payments are withdrawn but cannot modify the frequency of payments.
- Borrowing fees: Instead of loans accruing interest, borrowers pay a one-time borrowing fee. The lender does not publish this rate online, but it is reportedly between 2.9% and 18.72% of the total loan amount.
- Qualification requirements: Qualifying for a LoanBuilder business loan requires $42,000 in minimum annual revenue, a 620+ personal credit score, and at least nine months in business.
- Funding speeds: Loans approved before 5 pm ET on a bank business day may be funded as soon as the next business day.
How to apply for a LoanBuilder business loan
Start the LoanBuilder application process by completing the online questionnaire to determine your business’s eligibility. The form takes around five to 10 minutes to complete and includes basic information about your business as well as the primary purpose of the loan. To qualify for a business loan through LoanBuilder, borrowers must:
- Be at least 18 years old
- Have been in business for at least nine months
- Have an average annual revenue of at least $42,000
- Have a personal FICO Score of at least 620
- Not work in an ineligible industry
Based on this information and a soft credit check, LoanBuilder generates estimated loan offers. Next, complete a loan offer that meets your needs and complete the formal application process. Once the loan is approved, electronically sign the necessary contract and complete the banking information form. Loan funds will be disbursed to your business bank account, and payments will be automatically withdrawn from your account each week.
LoanBuilder funding fees
LoanBuilder business loans come with a one-time borrowing fee between 2.9% and 18.72% of the loan amount. This fee is instead of traditional interest rates that accrue over the entire loan term. Borrowers can pay off LoanBuilder loans early but are still charged the full fee with no discounts available. There are no origination, late, early repayment, or processing fees. Borrowers may incur a $20 returned item fee if a payment is returned.
Customer support
LoanBuilder’s customer service options appear to be less robust than those offered by other business lenders. Current and prospective borrowers can reach the lender’s support team via phone, Monday through Friday from 9 am to 8 pm ET and Sunday from 11 am to 3 pm ET. LoanBuilder can also be contacted via email.
Customer reviews
LoanBuilder is listed under the name Swift Financial and has a 4.4-star rating on Trustpilot based on 5,343 reviews. Negative reviews generally stem from denied applications, lengthy application processes, and high interest rates. Other reviews describe unhelpful customer service members.
Who Is LoanBuilder best for?
LoanBuilder is best for business owners with fair personal credit who have been in business for at least nine months and have $42,000 in annual revenue. That said, loan fees are high and payments are automatically withdrawn on a weekly basis. As such, the fintech company is best suited to businesses that can afford the frequent payments and won’t qualify for more competitive interest rates elsewhere.
LoanBuilder vs. Kabbage
In contrast to LoanBuilder, Kabbage Funding offers business lines of credit with borrowing limits of up to $250,000. Business owners can choose from Kabbage's 6-, 12-, or 18-month draw periods, and the borrower only pays interest on the outstanding balance rather than paying a one-time fee on the entire loan amount (as is the case with LoanBuilder).
Kabbage’s minimum qualification requirements are also lower than those for LoanBuilder. Borrowers must have a credit score of at least 600, demonstrate at least $36,000 in annual revenue, and have been in business for at least six months.
How LoanBuilder Stacks Up to Competitors
Frequently Asked Questions
Is LoanBuilder legit?
LoanBuilder is a legitimate fintech company founded in 2006 by Swift Financial. Loans are underwritten by WebBank, Member FDIC, and serviced by Swift Financial, LLC. PayPal acquired the company in 2017.
Do I need a PayPal account to get a LoanBuilder business loan?
A PayPal account is not required to get a LoanBuilder business loan. In fact, you only need a business checking account where your funds can be deposited for loan funding and debited for weekly payments.
How long does it take LoanBuilder to fund?
LoanBuilder borrowers may receive business loan proceeds as soon as the next business day if their application is approved by 5 pm ET on a bank business day.
Reviews for LoanBuilder
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2 LoanBuilder Consumer Reviews and Complaints
Steve, on June 24, 2020
Thief... Very deceptive on their loans. Paperwork states that they charge "interest" NOT A FEE on the service. SO if you you pay it off early they charge you ALL the "interest" in the payoff and you NEVER get refunded any "interest" over paid. SCAM DO NOT EVER USE THIS company
John Hall, on April 01, 2020
PayPal Loan Builder service is complete bullshit. They promise big loans and fast service and provide neither! I've run a successful small company for 17 years, with well over a million in sales annually for many years running ($1.4 million in 2019). Originally, PPLB said I qualified for up to $290,000 based on my sales (proven with bank statements). I applied for $50K, and was told I'd have an answer in just a couple days. I waited and waited and then, over a week later (allegedly waiting for underwriters!), they offered a loan of just $5K, less than 2% of the original $290,000! That's not even worth the ding on my credit report. It's nothing, peanuts! $5000 won't cover even one week's worth of expenses. What a waste of time! Half of America is shut down due to Covid19, and PayPal doesn't give a shit. If you need a loan for your small business, look anywhere but there. PayPal Loan Builder is a bullshit service. They may be able to help you, but they won't. Instead, they'll just insult you after wasting your precious time!