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LoanBuilder, A PayPal Service business loans review
Customizable loans with no origination fee for business owners in a hurry.
With LoanBuilder, A PayPal Service, you can get financing in as fast as a day. But the weekly repayments and personal guarantee might make it a costly choice. Weigh the pros against the costs of borrowing to ensure it’s the right move for your business.
Anna Serio is a trusted loans expert who's published more than 800 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Fundera, Business.com, and ValueWalk feature her professional advice, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Expert Review
Review by
Anna Serio
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, 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.
A PayPal service as of November 2017, LoanBuilder specializes in short-term lending to midsize businesses. Business owners can apply for its term loans to cover almost any legitimate business purpose, and it’s fast: You can apply online and may be able to get your loan as soon as the next business day.
LoanBuilder business loans are financed by WebBank, Member FDIC.
Why should I consider LoanBuilder?
There are several reasons to consider a business loan from LoanBuilder. Its midrange loan amounts and minimal eligibility criteria go a long way to making it a solid choice, and other features simply sweeten the deal.
Open to recent startups with minimal annual income
Unlike many banks and other online lenders that require you to have been in business for at least two years, LoanBuilder accepts borrowers who have only been in business for nine months. And you won’t have to have a huge revenue stream to qualify. Provided your annual revenue is at least $42,000 — compared to the $100,000 revenue criteria required by some lenders — you may be eligible to borrow.
Only one fixed fee
LoanBuilder charges a single borrowing fee that ranges from 6.49% to 19.31%. There are no origination, application or prepayment fees. However, the full borrowing fee will be due when you repay — no matter if you pay your loan off on schedule or months ahead of time. And if you don’t have enough in your business checking account to make your repayment, LoanBuilder may charge a nonsufficient funds (NSF) fee.
Available for businesses in most industries
Provided your business isn’t part of an ineligible industry, it may qualify for a loan. And since LoanBuilder is available in all 50 states and Washington, DC, you can borrow no matter where your business is based in the country.
Business owners can have a low FICO score
LoanBuilder accepts business owners with personal credit scores as low as 550. As long as your business meets the time-in-business and revenue requirements, it may still qualify. However, a lower score may impact the rate you get.
Next-day turnaround available
If you apply and submit all necessary documentation by 5 p.m. ET on a business day, LoanBuilder may be able to fund your loan the next business day. Compared to a few weeks with a bank or even a handful of business days with other short-term lenders, your business won’t have to wait to get the funding it needs.
High customer ratings
While it’s still listed as Swift Financial on Trustpilot, it earns high praise for efficient turnaround and good customer service. Reviewers on Reddit and MyFico aren’t fans of the weekly payments or high fee, but overall agree that the loan itself is quick and easy to qualify for.
Customize your loan
The LoanBuilder Configurator allows you to have more control when seeking the funding you need without affecting your credit score. If your business prequalifies, you can use this tool to adjust your loan offer to find terms that might better fit your business’s financial situation.
Does my business qualify?
Your business must meet the following requirements to be eligible for a loan with LoanBuilder:
Annual revenue of $42,000 or more
At least 9 months in business
In an eligible industry
In addition to these basic requirements, you must also have a personal FICO credit score of at least 550 to qualify.
What industries are ineligible for a loan from LoanBuilder?
Your business won’t qualify if it falls into one of these industries:
Agencies for artists, athletes, entertainers and other public figures
Public administration
Attorneys
Business and professional associations
Civic and social organizations
Collection agencies
Credit bureaus
Elementary schools, secondary schools and junior colleges
Environmental, conservation and wildlife organizations
Financial services
Gambling and related businesses
Grant-making foundations
Gun stores
Holding companies
Management companies
Human rights organizations
Independent writers, artists and performers
Labor and political organizations
Manufactured home dealers
New and used car, ATV, RV, watercraft, boat and motorcycle dealerships
Nonprofits
Religious organizations
Voluntary health organizations
Pros
No origination, application or stacking fees
Next-day turnaround available
Available in all 50 states
Customizable terms
Dedicated representative
Cons
Requires weekly repayments
Backed by a personal guarantee
Rates start high
Compare LoanBuilder to more business loan providers
Updated March 31st, 2020
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What do customers have to say about LoanBuilder?
LoanBuilder, A PayPal Service is a newer product so it hasn’t yet built an online reputation. And while you’ll find comprehensive reviews on financial forums like MyFico and Reddit, PayPal hasn’t rebranded the LoanBuilder pages on the Better Business Bureau (BBB) website or Trustpilot — you’ll still see it listed under Swift Financial.
That being said, its Trustpilot page has nearly 5,000 glowing reviews and a great rating of 4.9 out of 5 stars. The main draw? Customer service. The majority of reviewers agree LoanBuilder’s customer service team is professional, helpful and efficient. Many customers also praise LoanBuilder’s fast and easy process.
The main complaints revolve around high interest rates, with APRs over 20%. But even these more negative reviews still state that LoanBuilder provided a quick service with decent customer service.
How do I apply?
First make sure you meet the minimum eligibility requirements, which include: a personal credit score of at least 550, an annual business revenue of at least $42,000 and at least nine months in business.
If you do, you can complete your application online through the following five steps:
Click ‘Go to site’ to be directed straight to LoanBuilder’s website.
Click ‘Check Eligibility’ to start your application.
Fill out the required personal and business information.
Review the loan terms your business is eligible for and upload any required documents.
Application screenshots
What information do I need to apply?
To complete the LoanBuilder application, you will need to submit the following information:
Business phone number and address
Total annual revenue
Business start date
Owner’s Social Security number
Business tax ID number
What happens after I apply?
It may take up to five minutes for your application to process. A representative will then be in contact with you to go over what documents you need to submit. You may be able to receive your funds the next business day if your application and supporting documentation is submitted before 5 p.m. ET on a weekday. Otherwise, it could take a few days to receive your funds.
How does LoanBuilder make an approval decision?
Your business’s overall financial situation will be evaluated when you submit an application. The exact amount your business qualifies for — if it qualifies at all — will depend on how you plan on using your loan funds and your revenue. The better able you are to afford weekly repayments and the better your individual credit, the more likely it is that your business will be approved.
What should I do if my business is declined?
If you aren’t approved for a business loan, LoanBuilder will send you an email within two days with details on why. From there, you can apply again after a 30-day waiting period.
How do repayments work with LoanBuilder?
LoanBuilder, A PayPal Service 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 NSF fees.
If you notice any inconsistencies or have trouble repaying your loan, contact LoanBuilder’s customer service team at 1-800-347-5626. It may be able to work with you to make your loan more affordable.
Bottom line
LoanBuilder, A PayPal Service could be a solid option for businesses that need fast financing but pull in enough revenue to afford weekly repayments. Businesses with unpredictable sales might want to look elsewhere, because the repayment schedule isn’t as forgiving as others.
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 collect loan repayments.
Will applying for a business loan from LoanBuilder 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. Should you decide to complete the loan application process, credit checks and other public record checks will be performed, which may affect your credit score.
How can I contact LoanBuilder’s customer service?
You can contact LoanBuilder’s customer service team by calling 800-347-5626 or emailing customerservice@loanbuilder.com. Representatives are available weekdays from 9 a.m. to 8 p.m. ET and Saturdays from 11 a.m. to 3 p.m. ET.
Can I change my payment date?
You can change the day of the week LoanBuilder will deduct funds from your bank account.
I received an offer in the mail. Is this legit?
Yes. LoanBuilder may mail some qualified business owners a special code to speed up the application process. To redeem your offer, visit LoanBuilder’s website and enter your funding code by selecting Did you receive mail from us? Click Here.
All LoanBuilder Loans are serviced by Swift Financial, LLC and issued by WebBank, Member FDIC.
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