PayPal Loanbuilder
Services Provided By Loanbuilder
Short-term business loans are provided by
LoanBuilder. Even though many other business financers offer identical
funding, LoanBuilder stands out from the competition since the loans are
competitively priced, borrowers don't have to pay an origination fee (or any
other upfront costs), and borrower qualifications are minimal.
What Distinguishes Loanbuilder From A Paypal Loan?
No distinction is made between PayPal Business Loans
and LoanBuilder. In fact, you might note that the service is referred to as
PayPal Business Loan rather than LoanBuilder when you start the application
inquiry. It was formerly planned to phase out the LoanBuilder brand name, but
that hasn't happened yet.
How Is Loanbuilder Distinct From Working Capital at PayPal?
The parent firm of LoanBuilder also provides PayPal
Working Capital as a business financing option. PayPal Working Capital also
offers quick company loans, as does LoanBuilder.
Although it's restricted to PayPal sellers, PayPal
Working Capital is a helpful feature. In contrast, LoanBuilder is accessible to
most businesses, including those who are not PayPal vendors. The amount that
merchants can borrow through LoanBuilder is based on the total income of the
company, and it also offers larger maximum borrowing quantities (not just its
PayPal sales). If you think you could be eligible for a LoanBuilder loan, look
at the next section.
Loanbuilder Requirements for Borrowers
Although LoanBuilder's conditions for borrowers are
rather lax, a broad list of industries is banned, including among others
financial services, law firms, and charities. The following is a list of the
minimum requirements your business must meet in order to have a high
probability of getting a LoanBuilder loan:
|
Time
In Business: |
9
months |
|
Business
Revenue: |
$42,000
per year |
|
Personal
Credit Score: |
620 |
Unqualified Industries
Additionally, your company must have its
headquarters in the US. You must also be free of any open bankruptcies.
Loanbuilder Interest Rates & Fees
Rating:
Good
The current rates and costs for LoanBuilder loans
are as follows:
|
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: |
|
|
Collateral: |
UCC blanket lien |
LoanBuilder offers loans up to $500,000 to qualified
borrowers. The one-time fees for LoanBuilder are between 2.9 and 18.72 percent
of the loan amount. A specific piece of collateral is not required in order to
be eligible for a LoanBuilder business loan; rather, a blanket lien is
required.
Borrowing costs with LoanBuilder are typically not
excessive. The loans' short repayment periods, however, result in high weekly
installments.
The cost of the loan is expressed by LoanBuilder as
a Total Interest Percentage. To calculate the cost of borrowing, just multiply
the total interest percentage by the amount borrowed. For instance, you would
pay $10,000 in borrowing fees if you borrowed $100,000 and the interest rate
was 10%. You would have to pay back $110,000 in total. The Total Interest
Percentage is not the same as an interest rate or annual percentage rate (APR).
LoanBuilder's borrowing fees are computed just once and remain the same
throughout the loan period, unlike interest, which builds up over the course of
the loan.
Notably, LoanBuilder does not impose an origination
(or comparable) fee, thus your payment will not be reduced in any way. You will
just be charged the flat borrowing fee; you won't be assessed any late or NSF
fees. The borrowing fees charged by LoanBuilder are not the most affordable,
but they are also not the most costly, and they might reach a maximum of 18.72
percent of the borrowed amount. With a maximum repayment duration of 52 weeks,
it is clear that this is not a viable long-term financing option. Additionally,
each weekly repayment will be hefty.
Repayment is automatic. A fixed amount will be taken
out of your company bank account each week by LoanBuilder via an automated
clearing house (ACH). It's important to note that many of LoanBuilder's rivals
withdraw payments every day, making LoanBuilder's method simpler to plan for
than others. There is no financial advantage to paying off the loan early, but
you are free to do so if you so want.
Although LoanBuilder does not demand any specific
collateral, it does demand a UCC-1 blanket lien, like many other internet
lenders.
APPLICATION PROCESS
Rating: Excellent
Application for LoanBuilder is a quick and simple
process.
The first step is to complete an online
prequalification form. You can choose to log in as a guest or with your PayPal
account, in which case LoanBuilder will already have access to some of your
information. There are 5 steps in the application: Contact details, personal
information, the location of the business, financial information, and identity
verification. Overall, LoanBuilder claims that completing this form will just
take five to 10 minutes.
Regardless of the type of business you run, the
information you must provide falls under one of the following categories:
Your name, email address, phone number, and the
purpose for which you want to spend the loan funds must all be provided in the
first step, Contact Info.
Personal Information is the next section, where you
must enter your home address and mobile numbers.
You must provide your company's address and contact
information for business location.
Your business entity type, trade name or DBA, state
of incorporation, annual business income, business start date, number of
full-time workers, business industry and sub-industry, and other pertinent
information will be provided under the heading "Business Details."
You must provide details about your date of birth,
Social Security number, ownership stake in the company, and federal tax ID in
the loan application's final part, which is titled "Verify Identity."
This information will be used by LoanBuilder to run a soft credit pull, which
will provide the lender an idea of your credit history. Giving this information
out will not lower your credit rating.
HOW DO THINGS GO AFTER I APPLY ONLINE?
As soon as you submit the application, LoanBuilder
will inform you of whether you have been given permission to move forward or
not. LoanBuilder assesses your business's financial standing and general
health, as well as your own credit history, to establish your eligibility. You
can choose your loan amount and term duration if you are preapproved, and you
will be given approximate rates and costs.
You must submit an entire application once you've
decided on your conditions. Depending on the circumstances of your firm,
several types of evidence, including recent bank statements, may be necessary.
A hard credit check will be done by LoanBuilder at this step, which could have
a minor effect on your credit score. You must electronically sign a contract before
getting your money if your loan application is accepted.
I GOT A LOAN FROM LOANBUILDER. NOW WHAT?
The money will be deposited into your bank account
after approval by WebBank, the bank that originates LoanBuilder loans.
Generally speaking, the funds will transfer the following business day if your
loan is accepted before 5 PM EDT on Monday through Friday. If your application
is accepted after 5 PM or over the weekend, the transfer may take a little
longer.
Weekly instalments will be automatically withheld by
LoanBuilder as repayment. The day of the week on which withdrawals are made
will be up to you.
MY LOAN WAS REJECTED BY THE LOANBUILDER. WHAT'S NEXT?
In the event that your loan is turned down,
LoanBuilder will notify you right away and send you an email a few days later
with more information. After 30 days have elapsed, those who weren't selected
might try again.
Transparency of sales and advertising:
Rating: Fair
LoanBuilder has significantly decreased the amount
of information it gives potential borrowers up front over the last two years.
Even while Loanbuilder still has a FAQ, it only contains broad information
about how it functions. You won't find much information regarding rates or
specific terminology there. Similar information is presented on the PayPal
Business Loan website in a little different style.
By answering a short questionnaire, you can quickly
check your eligibility, but you must provide your contact information.
CUSTOMER SERVICE & TECHNICAL SUPPORT
Rating: Good
Monday through Saturday, customers can reach
customer care by phone. Email and social media are also available for support.
However, live chat is not an option.
LoanBuilder looks to have made tremendous efforts to
improve its customer service experience even though consumers have in the past
complained about how difficult it was to contact a customer care specialist.
The majority of current reviews of the company's customer experience are good.
REVIEWS, COMPLAINTS, & TESTIMONIALS OF THE LOANBUILDER
Rating: Good
NEGATIVE REVIEWS & COMPLAINTS
It's challenging to distinguish PayPal's loan
services from all of their other activities because they are a PayPal service.
LoanBuilder was a Swift Capital creation before it was incorporated into
PayPal. If you don't want to read through hundreds of PayPal complaints, it's
worth looking at Swift Capital's Better Business Bureau profile since many
complaints about LoanBuilder still tend to go there. Despite not being
BBB-accredited, Swift Capital has an A+ rating on the website and 21 complaints
that were resolved in the last three years. With a 4.7/5 rating and 5,336
reviews, it also has a strong presence on Trustpilot. However, there are some
unfavourable comments online. The complaints made about this service are listed
below:
Unexpected
Obstacles: Some clients reported that the application and
funding process proved to be more challenging than anticipated, either as a
result of misunderstanding or accident.
Confusing
Terms: While often brought on by a lack of knowledge with
the vocabulary used in short-term loans, other customers discovered that they
were ill-equipped to comply with the requirements.
Short
Repayment Terms: The maximum time for repayment is 12
months. That is not much time. In comparison to what they would be if you were
given a longer term duration, the weekly payments will be significantly higher.
Inflexible:
When customers had trouble making payments according to the timetable, some
concerns centred on the rigidity of LoanBuilder's requirements.
Issues
with COVID: The global pandemic in 2020–2021 will
present challenges for repayment, and there will be uncertainty around PPP
applications, according to many of the more recent complaints.
POSITIVE ADVICE & TESTIMONIALS
LoanBuilder offers a number of customer testimonials
on their website, a sizable number of favourable Trustpilot reviews, and a few
positive BBB experiences. Typically, customers enjoy the following:
Fast Time to Funding: Obtaining cash quickly
provides advantages despite the fees involved.
Helpful Customer Service: In general, it seems that
customers are happy with the service and support provided.
Weekly Repayment Schedule: The majority of MCA and
short-term loan providers take daily deductions from your sales. Weekly
deductions are much simpler for many firms to manage.
Transparent Fees: For a product of this nature,
LoanBuilder offers relatively few surprises in terms of fees.
FINAL DECISION
LoanBuilder offers loans that are quicker, simpler,
and a little more flexible than the typical fintech business loan. PayPal's
apparent shift away from openness over the past two years is perplexing and
unquestionably a step in the wrong direction, but the service is still one of
the best short-term lending options available.
Even while some borrowers might prefer loans with
lengthier repayment terms, LoanBuilder offers a lot to offer the right kind of
company. To put it another way, you should compare LoanBuilder if your company
need a quick infusion of cash or if you are unable to find finance elsewhere.