Loan builder services

LoanBuilder provides short term business loans. While many other corporate lenders offer similar loans, LoanBuilder stands out in the crowd for several reasons.

Loans are relatively cheap, borrowers do not have to pay processing fees (or other upfront fees), and borrower requirements are low.


How is LOANBUILDER different from PAYPAL LOAN?

LoanBuilder and PayPal Business Loans are one and the same. At the beginning of the application form, you may notice that the service is called "PayPal Business Loan" instead of "LoanBuilder". There were plans to phase out the LoanBuilder brand name, but they have not yet come to fruition.


What is the difference between Loanbuilder and PayPal Working Capital?

PayPal Working Capital is another business loan service offered by LoanBuilder's parent company. Like LoanBuilder, PayPal Working Capital offers short-term business loans.


PayPal Working Capital is a useful tool, but it is only available to PayPal merchants. In contrast, LoanBuilder can be used with PayPal merchants or most other businesses. LoanBuilder also offers higher loan availability, and the amount a merchant can borrow is based on the company's total revenue (not just PayPal sales). Check out the next section to see if you are likely to qualify for a LoanBuilder loan.


Borrower requirements

LoanBuilder's borrower qualifications are fairly lenient, but the list of ineligible industries is quite long and includes lawyers, nonprofits, financial services, and more. Here are the minimum requirements your business must meet to increase your chances of getting a loan from LoanBuilder.


Time spent in store:  9 Months

amount of sales: $42,000 per year

Personal Credit Score: 620

Ineligible Departments:

Your company must also be based in the United States. Additionally, there should be no ongoing bankruptcy.


Mortgage interest rates and fees

evaluation: good


Here are the current interest rates and fees for LoanBuilder loans:

Loan amount:   $5,000 to $500,000

interval: 13-52 weeks

Rental fee: One-time fee of 2.9% to 18.72% of loan amount

Creation fee: none

Effective annual interest rate: learn more

safety: UCC Blanket Lien

LoanBuilder loans are available up to $500,000 for eligible borrowers. LoanBuilder's interest rate is a one-time fee that ranges from 2.9% to 18.72% of the loan amount. No special collateral is required to qualify, but a blanket lien is required to obtain a LoanBuilder business loan.

LoanBuilder's loan fees are usually not that high. However, the loan repayment period is relatively short, requiring large weekly payments.

LoanBuilder expresses the cost of a loan as a percentage of total interest. Calculating loan fees is easy. Simply multiply the total interest rate by the loan amount. For example, if you borrow $100,000 at an interest rate of 10%, you will incur a loan fee of $10,000. In total, I have to pay back 1,100,000 yen.

 Note:

Gross interest rate is different from interest rate or annual rate. Unlike interest that accrues over the life of the loan, LoanBuilder's loan fee he is charged only once and remains the same for the life of the loan.


In particular, LoanBuilder does not charge a commitment fee (or similar fee), so it will not be deducted from the amount you receive. Aside from late payments and his NSF fees, the only fee charged to the customer is the fixed rental fee. LoanBuilder's loan fees aren't expensive, but they aren't the cheapest either, and can reach 18.72% of the loan amount. It has a very short repayment period of up to 52 weeks, resulting in large weekly repayments rather than a viable long-term financing option.


Repayment is easy. LoanBuilder withdraws a fixed amount each week from commercial bank accounts through Automated Clearing House (ACH). It's worth noting that many of LoanBuilder's competitors have exited.