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Bottom line: Loanbuilder may be a good option for fair credit borrowers running a new business, but pick something else if you have good credit and can get better rates and terms.
$5,000
Min. Amount
$100,000
Max. Amount
Not stated
APR
Min. Amount | $5,000 |
---|---|
Max. Amount | $100,000 |
Loan term | 3.25 to 12 months |
Min. Credit Score | 580 |
APR | Not stated |
Financing fee | 6.49% to 19.31% |
Requirements | Annual business revenue of $33,300+, 9+ months in business, 580+ personal credit score |
Review by
Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
LoanBuilder, A PayPal Service earns high praise from borrowers who rate it as an efficient way to get quick funding for their business. Unlike banks or other online lenders, you and your business won’t need to meet strict eligibility criteria to qualify. You’ll only pay one fee for borrowing, and your business may be eligible for up to $500,000. And you may even be able to receive your funds on the same day you apply — provided all your documents are in order.
But some borrowers have complained the one-time fee results in a high APR. Weekly repayments could also throw a wrench in your business’s budget, especially if you hit a period with limited cash flow. If you decide to borrow, be sure your business can handle the quick repayment schedule LoanBuilder demands.
LoanBuilder may be a top option, but you should also compare your other business loan options to ensure you find the right funding that suits your business.
LoanBuilder offers business loans between $5,000 to $100,000 for first-time borrowers, and up to $150,000 for repeat borrowers. Terms range from a short 13 weeks up to one year.
But instead of charging interest on your business loan, LoanBuilder charges a fixed fee of 6.49% to 19.31%, which it calls the Total Loan Fee. For example, on a $100,000 loan with LoanBuilder's minimum term of 13 weeks, this translates to a hefty APR of 44.57% to 131.75%.
On the plus side, there are no origination, application or prepayment fees with LoanBuilder and it may be willing to waive its returned item fee if you alert them your payment will be late. However, the entire Total Loan Fee will be due when you repay — even if you pay your loan on schedule or pay it off early.
See how much you'll pay
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LoanBuilder will evaluate your business’s overall financial situation and history when you submit an application. At a minimum, you must show that you've been in business for at least nine months and that your business is earning a minimum $33,300 a year.
If your business qualifies, the amount you get will depend on how you plan to use your loan funds and your revenue. The better you can afford weekly repayments, the more likely your business will be approved. Your personal credit and previous borrowing history with LoanBuilder may also improve your chances.
The LoanBuilder Configurator allows you to have more control when seeking the funding you need without affecting your credit score. If your business prequalifies, use this tool to adjust your loan offer to find terms that might better fit your business’s financial situation.
You and your business must meet the following requirements to be eligible for a loan with LoanBuilder:
To complete the LoanBuilder application, you'll need to provide the following information:
You may also be required to submit four months of your most recent bank statements or additional documents if you're conditionally approved for a loan.
Your business won’t qualify if it falls into one of these industries:
LoanBuilder is a legit lender backed by PayPal, financed by WebBank and serviced by Swift Financial. It has a clear privacy policy that includes information on how your personal information is collected and how you can opt out. Its website is secure, and while LoanBuilder doesn’t state the exact method it uses to keep your information safe, it does state that it takes reasonable measures — which includes SSL encryption.
BBB accredited | No |
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BBB rating | A+ |
BBB customer reviews | 1 out of 5 stars, based on 1 customer reviews |
BBB customer complaints | 20 customer complaints |
Trustpilot Score | 4.6 out of 5 stars, based on 5,339 customer reviews |
Customer reviews verified as of | 08 July 2022 |
LoanBuilder — which is serviced by Swift Financial and is listed as Swift Financial on the BBB and Trustpilot websites — gets overwhelmingly positive reviews on Trustpilot, although many recent reviews are negative. And while it doesn’t have many recent customer reviews listed on its BBB page, four customers have registered complaints with the BBB in the past year.
Satisfied customers mention the "easy" application process and fast funding times. One customer expressed surprise at how willing LoanBuilder was to temporarily pause payments and offer a lower rate when the customer was experiencing financial hardship.
Less happy customers report problems with their applications, poor customer service and long hold times on the phone.
Here are the steps to get prequalified and apply for a LoanBuilder business loan.
It may take up to five minutes for your application to process. If approved, you may be able to receive your funds the next business day — provided your application and supporting documentation are submitted before 5 p.m. ET on a weekday. Otherwise, it could take a few days to receive your funds.
If you aren’t approved for a business loan, LoanBuilder will send you an email within two days with details on why it wasn’t able to fund your loan. From there, you can apply again after a 30-day waiting period or consider applying with a different lender.
LoanBuilder automatically deducts repayments from your business checking account every week, so avoid moving around money in a way that might leave your account short. And while you can’t change the weekly repayment schedule, you can change the day of the week LoanBuilder deducts your funds. So when cash flow fluctuates, you still have control over when you repay — helping you avoid its $20 NSF fee.
If you notice any inconsistencies or have trouble repaying your loan, reach out to LoanBuilder’s customer service team. It may be able to work with you to make your loan more affordable.
See how LoanBuilder stacks up to the competition with our guide to business loans.
Do I need a PayPal account to get a LoanBuilder business loan?
No, but you must have a business checking account so that LoanBuilder can disburse your funds and draw repayments.
How will applying for a LoanBuilder business loan affect my credit?
Completing the questionnaire will assess your business’s eligibility, allow you to review estimated offers if eligible and will not affect your credit score. If you decide to complete the loan application process, credit checks and other public record checks will be performed, which may affect your credit score.
All LoanBuilder Loans are serviced by Swift Financial, LLC and issued by WebBank, Member FDIC.
LoanBuilder business loans is not currently available on Finder
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