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Latest LoanBuilder Reviews, Loan Terms, Pros & Cons [2020’s Edition]

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Strengths

  • Quick processing time
  • Simple and quick application process
  • Available in all 50 states

Weaknesses

  • The single lending fee is high, starting from 6.49%
  • No long-term financing options

Breakdown

Minimum Time in Business

9 Months

Credit Score

550

Annual Revenue

$42,000

Borrowing

$5,000 - $50,000

Origination Fee

None

Funding Time

1 Business Day

LoanBuilder is a financing company that offers quick, short-term funding solutions to US-based small businesses. The platform was established by Swift Financial in 2006 but came under the umbrella of PayPal when the payments company acquired Swift Financial in 2017. Ever since then, it has been operating as a PayPal service. 

The company is a direct lender and offers business short-term loans with a zero origination fee, fixed pricing, and fixed-rate payments. Known for its simple application process and fast turnaround time, LoanBuilder offers loans from $5,000 to $500,000. All these features have generated great LoanBuilder reviews.

However, as mentioned above, the company only offers short-term business loans – with a repayment term of less than a year. This makes it ideal for businesses that need quick funding, but only for a short period of time, for unexpected immediate needs, to pay vendors, or to buy inventory. 

In this review, we are going to cover everything you need to know about LoanBuilder – its main features, application process, reviews, terms and conditions, and pros and cons.

LoanBuilder’s Borrower Requirements & Terms

Like all other lenders, LoanBuilder has a set of terms and requirements that borrowers have to meet to qualify for a loan. Here’s an overview:

Feature Data
Minimum time in business 9 months
Credit score required 550
Annual revenue required $42,000
Borrowing amounts range $5,000 – $50,000
Borrowing fee 2.9% – 18.72% of the total amount (one-time fee)
Origination fee None
Funding time 1 business day
Location requirements The business must be based in the U.S.
Bankruptcies No active bankruptcies
Eligible industries More than 500
Personal loan guarantee required Yes
Collateral UCC-1 blanket lien
APR LoanBuilder doesn’t have an APR rate. It charges a fixed fee instead

How to Apply For a Business Loan with LoanBuilder? 

The application process of LoanBuilder is short, simple, and straightforward. Unlike most other lenders, LoanBuilder reviews state that it neither requires borrowers to disclose all their business and financial details nor makes them wait for long periods of time to find out if they qualify for a loan. Instead, LoanBuilder asks everyone who wants to apply for a loan to fill out a simple, concise questionnaire. Only those who qualify are required to submit supporting documents.

Here’s a step-by-step breakdown of LoanBuilder’s application process:

  • Visit www.loanbuilder.com and click on Check Eligibility.
  • You will be asked to provide your basic personal information, business details, and the purpose of the loan. The details you will need to provide about your business include your company’s name, address and contact details, industry and niche, entity type (LLC, partnership, etc.), number of employees, annual revenue, the date when the company was established, your stake in the business (in percentage), and federal tax ID.
  • Submit the questionnaire and wait for their response. The website may take up to 5 minutes to determine your eligibility for the loan.
  • If you qualify for the loan, a representative from LoanBuilder will get in touch with you to inform you about the documents that need to be submitted.
  • Once you submit the documents and they are approved, your application will go into processing. LoanBuilder has one of the fastest processing systems. If you submit the application and documents before 5 p.m. on a weekday, your loan will be issued the next business day.

Pricing & Repayment

LoanBuilder charges a single fixed fee on loans instead of a standard interest rate. The fee, however, varies from business to business and is calculated on the basis of factors like the health and growth of your company, annual revenue, FICO score, and the repayment period. It can range from 6.49% to 19% of the loan principal.

The best thing about the fixed fee is that you know how much extra money you will have to pay from the very beginning. To make it easier for businesses to pay the fixed fee, the amount is divided into installments just like your actual loan amount.

The lender does not charge any origination fees.

How does repayment work?

LoanBuilder has a simple repayment policy. The repayment period can range from 13 to 52 weeks, with weekly installments. The installments are automatically debited from your business account. The borrowers are allowed to choose the day of the week they want the loan payments to be deducted from their account. 

LoanBuilder does not have any additional charges except a returned payment fee. The company charges $20 on all returned payments on the account, such as bounced payments or checks. 

There are no penalties or benefits of early repayment.

Pros and Cons

Simple and quick application process

No origination fee, APR, or prepayment penalty

Quick processing time – you can receive the funds by the next business day

Available in all 50 states

Short-term business loans

No benefit of early repayment

Not all industries are eligible

Requires a personal guarantee

LoanBuilder Business Loans Reviews

The LoanBuilder loan service reviews by borrowers on different online platforms are largely positive. The company’s simple and quick application and funding process receives the most appreciation. However, some reviews complain that the company’s communication and customer support processes are not as efficient as they should be. 

That said, most LoanBuilder online reviews are positive and the company also has an A+ rating on the Better Business Bureau (BBB) and a 4.9-star average rating on Trustpilot.

LoanBuilder Alternatives

Here are some alternative options for small businesses who do not qualify for LoanBuilder’s short-term loan or do not find it a viable option:

National Funding

National Funding is known for having some of the least strict requirements for loan approval. They have approved business and equipment financing loans with a FICO score of 500-575. The amount of loan National Funding provides to businesses is the same as LoanBuilder – $5,000 to $500,000. The upper limit for equipment financing loans, however, is $150,000. They also process applications quickly and can issue loans in as little as 24 hours.

National Funding is a good option for those who cannot qualify for LoanBuilder due to low credit scores.

StreetShares

For times when you need cash urgently and cannot even wait for a day, StreetShares is one of your best options. They can provide loans from $2,000 to $250,000 on the same day. Also, unlike LoanBuilder, you can take up to three years to repay the loan. In addition to standard business loans, StreetShares also offers contract financing and lines of credit.

With StreetShares, businesses never have to miss a time-sensitive deal just due to the lack of finances.

The Wrap-Up

The simple and quick application process and transparency of their policies are the two key reasons for LoanBuilder’s popularity. LoanBuilder functions under PayPal and its service shares Paypal’s reputation for quality, judging by reviews. This is enough for them to earn credibility and consumer trust. 

LoanBuilder has its downsides too. The company has a high lending fee, only offers short-term loans (for a maximum period of 52 weeks), and requires weekly repayments. So, evaluate the pros and cons carefully to determine if LoanBuilder is a good option for you.

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FAQ

Can my business get a loan if I have an active bankruptcy?

No, you cannot get a business loan from LoanBuilder if you have an active bankruptcy.

What industries are ineligible to get a business loan?

If your business falls into any of the following categories, you are not eligible to get a loan from LoanBuilder: ✔ Agencies for artists, athletes, entertainers, and other public figures ✔ Independent writers, artists, and performers ✔ Public administration ✔ New and used car, ATV, RV, watercraft, boat and motorcycle dealerships ✔ Civic and social organizations ✔ Financial service companies ✔ Management companies ✔ Credit bureaus ✔ Environmental, conservation and wildlife organizations ✔ Collection agencies ✔ Attorneys ✔ Business and professional associations ✔ Elementary schools, secondary schools, and junior colleges ✔ Grant-making foundations ✔ Gambling and related businesses ✔ Gun stores ✔ Human rights organizations ✔ Labor and political organizations ✔ Holding companies ✔ Manufactured home dealers ✔ Religious organizations ✔ Voluntary health organizations ✔ Nonprofit organizations

What is the customer service availability of LoanBuilder?

LoanBuilder’s customer service representatives are available via phone from 9 a.m. to 8 p.m. ET between Monday to Friday and from 11 a.m. to 3 p.m. ET on Saturday. You can also send them an email. However, LoanBuilder customer service reviews aren’t great. Many customers complain that customer support isn’t effective, and people often have to call multiple times before their problem gets resolved.

Will an eligibility check impact my credit score?

No, running an eligibility check for LoanBuilder will not affect your credit score.

Who is LoanBuilder business loan best for?

LoanBuilder business loans are best for small businesses that need short-term loans quickly to meet urgent financial needs.

Does LoanBuilder report to credit bureaus?

No, LoanBuilder doesn’t report borrowers’ payment details to credit bureaus, so you won’t get any benefit for early or on-time payment, in terms of credit score. However, timely payment will increase your chances of getting more loans in the future.

What is the LoanBuilder BBB rating? Is it accredited?

LoanBuilder is still listed as Swift Financial on BBB. While it has an A+ rating on BBB, the company isn’t accredited by the Better Business Bureau. However, there are many positive LoanBuilder reviews on several third-party websites, and the lender has a reputable position in the industry.