LoanBuilder Review

loanbuilder

LoanBuilder is a small business loan provider that is operated by PayPal, a well-recognized player within the payments industry. The entity behind the loan is known as Web Bank. LoanBuilder was initially a product of Swift Financial, which Paypal acquired in 2017. LoanBuilder is available in all 50 US states and Washington DC. LoanBuilder has multiple advantages. It provides fast funding and a transparent pricing model with a streamlined application process. There are no hidden fees and the customer service team is excellent.

LoanBuilder is a top-rated small business loan provider on Trustpilot with a rating of 9.6. One of the main advantages of LoanBuilder is that people can customize their loan by adjusting the amount and term length. Few loans have this function. On top of this, borrowers do not pay any upfront fees, and the rates are reasonable. But the biggest benefit of LoanBuilder is that it happens to be one of the easiest and most streamlined loan application procedures on the market.

What type of funding does LoanBuilder provide?

Highlights

requirments_icon1Loan Amount

$5,000 – $500,000

Terms

Up To 12 Months

Fund Received

Next Business Day

What do I need in order to qualify for funding?

To qualify for funding the business needs to be at least 9 months old. Businesses will also need an annual minimum revenue of $42,000 without any active bankruptcies. They need to be active within the 50 states or Washington DC. The business owner applying for the loan must have a FICO credit score of at least 550. Some industries are ineligible for a loan with LoanBuilder, such as the legal, charitable, and gambling industries.

How do I apply to get funding?

Businesses must complete a 10-minute questionnaire beforehand. This questionnaire consists of typical questions about the business, such as the percentage of ownership, entity type, annual revenue, and the primary reason for the loan. Once the application is completed with the desired loan amount and term length, the approval can be completed with minutes. If approved, a contract will be sent via email which needs to be signed electronically.

What is the process to receive funding?

Banking details are to be provided on the contract sent via email so weekly payments are deducted from the business bank account. Once approved, the loan is transferred directly from the lender into the business bank account.

Find the right funding for your business

Does LoanBuilder run a credit check?

Yes, LoanBuilder runs a credit check.

Do I have to provide security or a guarantee?

LoanBuilder requires a personal guarantee. LoanBuilder also requires a UCC-1 financing statement, which indicates that the lender has an interest in the personal or business property in the event of default. While no collateral is required upfront, the UCC-1 indicates that the creditor has an interest in the property in the event of a dispute.

Are there fees involved?

One of the biggest advantages of LoanBuilder is that there are no upfront fees involved. LoanBuilder is very transparent in its pricing model with one single rate.

What are the loan rates?

Loan rates are typical of other alternative lenders. Interest rates range from 6.49% – 19.31% (24.83% – 49.95% APR).

What documentation do I need to provide?

The necessary documentation varies depending on the individual loan application. It is possible that all that is required is 4 months of recent business bank statements.

How long will it take for money to get into my account?

Money can be in the company account within the next business day upon approval.

What happens in the case of a default?

Defaulting on your loan could lead to legal action as well as having a negative effect on credit score. When a creditor lacks collateral, legal action against the company can ensue, and can also include personal property.

Is LoanBuilder regulated?

Web Bank is an FDIC member and Swift Capital is a PayPal subsidiary. It is fully regulated.

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