LoanBuilder 2020 Review
Businesses looking for fast cash in larger amounts don’t usually have too many options. But thanks to LoanBuilder, a PayPal service, business owners looking for short-term loans with quick access to cash have a quality choice.
LoanBuilder began as a product of Swift Capital, but was acquired by PayPal in 2017. The product also is marketed as “PayPal Business Loans”.
For business owners with fair credit who need short-term lending options, LoanBuilder offers financing up to $500,000.
Fortunately, you don’t have to go through the whole loan process to find out whether or not you’re eligible for a LoanBuilder loan; simply check eligibility, view terms, and customize your potential offer after just a short questionnaire.
About LoanBuilder: What You Need to Know
LoanBuilder offers transparent lending terms and large borrowing options for those looking for short-term loans of less than a year.
There’s no need to go through a lengthy application process before finding out whether or not you qualify. All prospective borrowers fill out a short questionnaire that LoanBuilder uses to determine eligibility. Only those who are determined to be candidates for a loan are asked to go through the whole application process.
Due to the short-term nature of LoanBuilder’s borrowing terms, borrowing money from them can be more expensive than longer-term loans. However, many borrowers feel the easy access to cash and flexible qualifications make the higher cost a good trade-off.
Even though LoanBuilder is a service of PayPal, borrowers do not need to have a PayPal account in order to borrow funds.
Why Business Owners Choose LoanBuilder
One of the biggest draws for LoanBuilder is the name recognition PayPal gives it.
PayPal’s standing as a company gives borrowers confidence in applying for loans, as they know the company has longevity.
Simple Application
Additionally, the pre-qualification process with LoanBuilder is a favorite with borrowers.
Rather than going through a drawn-out application process full of financial disclosure and waiting periods only to determine that the company won’t lend you money, LoanBuilder has a quick, easy questionnaire that they use in determining who qualifies for loans. If your initial questionnaire shows you will be a good fit for a LoanBuilder loan, you are asked to move through the remainder of the application process.
Handy Loan Configurator Tool
LoanBuilder also offers a Loan Configurator tool. This is a tool that helps borrowers see how the amount they plan to borrow will affect their overall payment, taking into account personal financial qualifications.
This tool is a notch above many other sliding scale calculators which only show interest rates and borrowing amounts.
All LoanBuilder’s fees are disclosed up front, making them among the most transparent in the short-term lending industry.
LoanBuilder’s customer reviews largely are positive, with people praising the easy applications and friendly customer service representatives.
LoanBuilder Features:
- Quick prequalification process
- Big-brand name recognition thanks to PayPal
- Loan Configurator tool lets you see how your payments may change based on different factors
- No origination fees, closing costs, or processing fees
- Short-term loans up to 12 months available in amounts up to $500,000
- Exceptional reputation for customer service
How Does LoanBuilder Work?
LoanBuilder offers short-term loans of up to $500,000 to small businesses with repayment terms up to 12 months.
Their minimum required credit scores and annual revenue numbers are lower than some other short-term lenders, making them a great option for many businesses.
LoanBuilder doesn’t work all businesses. They do not lend to businesses in the following industries:
- Agents and managers of public figures
- Public administration
- Attorneys
- Business and professional organizations
- Civic and social organizations
- Collection agencies
- Credit bureaus
- Elementary, secondary schools, and junior colleges
- Environmental organizations
- Financial services
- Gambling and related businesses
- Grant-making foundations
- Gun stores
- Holding companies
- Human rights organizations
- Independent artists
- Labor and political organizations
- Manufactured home dealers
- New and used automobile, ATV, RV, personal watercraft, boat, and motorcycle dealers
- Non-profit organizations
- Religious organizations
- Voluntary health organizations
LoanBuilder offers a quick and easy pre-qualification questionnaire and fast decisions on eligibility.
Applying for LoanBuilder
Interested borrowers fill out a quick online questionnaire that includes some personal information, business information, and identification verification. This process takes between five and 10 minutes.
After you’ve filled out the questionnaire, LoanBuilder uses the information you provide to determine whether or not you will be a good fit. Only those who are found to be a good fit will be asked to complete the rest of the application process.
If you are asked to continue the application process, you will be given a list of estimated rates and fees. Once you’ve settled on your loan amount, you will complete the full application and provide information such as recent bank statements.
After approval, you must electronically sign your loan documents before you can receive the funds.
Documents Needed to Apply for LoanBuilder
The documents required to complete your LoanBuilder application depend on your individual financial qualifications and the determination of your Business Funding Expert.
At minimum, LoanBuilder says applicants can expect to be required to provide four months of recent business banking statements.
Where Is LoanBuilder Available?
LoanBuilder is available to small businesses in all 50 states and the District of Columbia.
How to Apply for a Loan Through LoanBuilder
- Visit www.loanbuilder.com and click “Check Eligibility.”
- You will be asked to confirm your identity and business details, including legal business name, business date of inception and incorporation, primary loan purpose, and annual revenue.
- Check all the boxes to consent to electronic disclosures and LoanBuilder to obtain information about you and your business.
- You should see the estimated cost of your chosen loan amount.
- Once you’ve completed the initial questionnaire, LoanBuilder will contact you within one to two business days regarding your eligibility.
- If you’re eligible, you will be presented with possible terms and rates for your loan. Once you’ve chosen the terms, you’ll be asked for any additional documentation for the application.
- Once the application is complete and your loan request has been accepted, you will electronically sign a contract that includes banking information so you can set up payments.
Contact LoanBuilder: Website: www.loanbuilder.com Customer Service: (800) 347-5626 Hours: Monday-Friday, 9 a.m.-8 p.m. EST Saturday, 11 a.m.-3 p.m. EST Address: 3505 Silverside Road Wilmington, DE 19810
LoanBuilder Pros
- Nationwide service: LoanBuilder offers services in all 50 states.
- Accredited service: They have an A+ from the BBB (Better Business Bureau) and have a 9.4/10 on Trustpilot.
- Transparency: Their website provides transparency in regards to their loan terms and fees.
- Great customer service: Most customers reported good customer service, including timely communication and status updates with LoanBuilder.
- Apps to keep you updated: LoanBuilder has a mobile app for Android and iOS that keeps you updated on your loans, interest rates, payment amounts.
- Fast cash: LoanBuilder funds loans fairly quickly, sometimes in as little as one business day.
- No extra fees: There are no origination fees, stacking fees, or hidden fees.
- Weekly repayment: LoanBuilder provides weekly fixed-rate repayment terms, although you do have the option of daily payments.
- Quick and easy application process
- Pre-qualification process saves time
- Great customer service
- Handy Loan Configurator tool
- Loan amounts up to $500,000 available
- Interest assessed up front and doesn’t accrue over time
- Funding available as fast as the next business day after approval
- Funds transferred directly to your business bank account
LoanBuilder Cons
- More expensive than longer-term loans
- Terms can be confusing
- Only short-term loans available
LoanBuilder Pricing
LoanBuilder charges a one-time blanket fee that is between 2.9% and 18.72% of the original borrowing amount. The lender calls this fee the Total Interest Percentage.
Instead of accruing over time like a traditional interest rate, the amount you will pay LoanBuilder to borrow money is assessed when you first borrow money based on the amount you originally borrow and doesn’t change over time.
There also are no origination fees, closing costs, or processing fees, a fact which LoanBuilder is very up front about. LoanBuilder does charge a $20 fee for returned payments.
Borrowers must repay LoanBuilder loans in terms of between 13 and 52 weeks, with payments taken weekly.
The short-term nature of LoanBuilder’s lending does make them one of the more expensive options for some small businesses.
What Financing is Available Through LoanBuilder?
LoanBuilder offers short-term business loans to small businesses.
Short-Term Business Loans
Businesses looking to borrow between $5,000 and $500,000, and who plan to pay that money back in less than a year should look at borrowing from LoanBuilder.
LoanBuilder charges what they call a Total Interest Percentage to borrow money, meaning interest is assessed on the original loan amount and doesn’t accrue over time.
To qualify for a short-term loan, a business must:
- Be in business for a minimum of nine months
- Generate a minimum of $42,000 annually in revenue
- Have a minimum credit score of 550
- Not have any active bankruptcies
Business owners are required to sign a personal guarantee to secure their loans, much like many other lenders.
Funds are transferred directly into the business’s bank account, and can be available as quickly as the next business day. Repayments also are transferred from the business bank account to LoanBuilder automatically each week.
Summary
Finding short-term loans as a business owner with less-than-stellar credit and lower annual revenue can be difficult. And, if you do find funding, it can come with a hefty repayment price tag.
LoanBuilder offers fast, accessible funding to many small business owners. With their flexible requirements - a personal credit score of 550, at least nine months in business, and annual revenue of $42,000 or greater - funding is available to more small business owners that need it.
The pre-qualification process with LoanBuilder is unique, saving busy applicants time in the long run. Once approved for a loan, access to cash is quick and comes with the same backing that’s available to users of PayPal.
There are no hidden fees with LoanBuilder, and the amount you’re quoted for interest up-front is the amount you’ll pay for the entire life of the loan. There’s no accruing of interest over the time it takes you to repay.
Like many other short-term loans, LoanBuilder’s rates are higher than longer-term options. However, the fast access to cash and flexible qualifications make them the lender of choice for many small business owners.
Frequently Asked Questions
Who's eligible for funding through LoanBuilder?
Business owners in all 50 states and the District of Columbia who work in one of LoanBuilder’s approved industries can apply for a loan. LoanBuilder’s minimum lending requirements include:
- At least nine months in business
- Minimum credit score of at least 550
- Annual revenue of $42,000 or more
- No active bankruptcy proceedings
How much does LoanBuilder cost?
LoanBuilder’s Total Interest Percentage rates range from 2.9% to 18.72% of the original borrowing amount.
There are no origination fees, closing costs, or processing fees.
Is it easy to qualify for LoanBuilder?
Many business owners with lower credit scores, less cash flow, and shorter times in business find funding through LoanBuilder as opposed to other lenders.
Will I be charged more if I pay off my loan early?
No, there are no prepayment fees with LoanBuilder.
What makes LoanBuilder unique?
LoanBuilder allows you to tweak your loan settings to see your potential interest rates, total repayment terms, and weekly repayment terms to find the best loan before you commit to a loan.
Will prequalifying with LoanBuilder affect my credit?
Completing the questionnaire will assess your eligibility and not impact your credit score. However, if you decide to submit an application, your lender may authorize a hard credit check, which may impact your credit score.
Does LoanBuilder require a personal guarantee?
Like many other business loans, a personal guarantee is required by LoanBuilder.
How do I receive the funds after applying through LoanBuilder?
If you are approved, the loan is transferred by your lender directly into the business's bank account. You can receive your funding as soon as the next business day if you submit your documents and your loan is approved by 5 pm ET, Monday through Friday (excluding any bank holidays).
Are there any industries that are not eligible for a loan through LoanBuilder?
In order to be eligible for a loan through LoanBuilder, your business can't be in the following industries:
- Agents and managers for artists, athletes, entertainers, and other public figures
- Any businesses in public administration
- Attorneys
- Business and professional associations
- Civic and social organizations
- Collection agencies
- Credit bureaus
- Elementary and secondary schools, and junior colleges
- Environmental, conservation, and wildlife organizations
- Financial services
- Gambling and related businesses
- Grant making foundations
- Gun stores
- Holding companies and management companies (without subsidiaries included)
- Human rights organizations
- Independent artists, writers and performers
- Labor and political organizations
- Manufactured (Mobile) Home Dealers
- New and used automobile, ATV, RV, personal watercraft, boat and motorcycle dealers
- Non-profit organizations
- Religious organizations
- Voluntary health organizations
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