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LoanBuilder
9.1
ratings

Overview

An initiative launched by Swiss Capital, LoanBuilder is currently owned by PayPal. It started off as a financer for small business organizations. They offer business loans for a short period, free of any interest rates. The borrower only needs to pay a fixed amount of fees to borrow the sum. Their service stands out from the pool of lending institution in quite a few ways.

LoanBuilder’s inexpensive loan offers have made them quite popular among consumers. Additionally, the borrower does not need to pay any upfront fees. They also have minimal qualification requirements. The most notable feature of this organization is its flexibility of terms that make the repayment process easier. One can adjust the loan tenure and amount to manage the size of weekly payments.

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Pros

  • Weekly payments scheme
  • Fixed one-time fee
  • Convenient application process

Cons

  • Customer care unavailable on Sundays
  • Only offers short-term loans
  • Strict collateral requirements

Customer feedback and overall reputation

The customer care service is active from Monday-Saturday. One can contact them through multiple channels like social media sites or email. JD Power has designed their phone-based customer service. Thus, they have a revolutionary approach to assist their customers. Many customers have provided positive feedback regarding the fast service of LoanBuilder.

Thus, through LoanBuilder, one can get capital for their business quickly. Additionally, this company has weekly terms of repayment which is quite useful. Unlike MCAs, LoanBuilder does not collect a part of the business owner’s daily sales.

Collateral required

LoanBuilder may require a personal guarantee which acts as a collateral. Thus, your loan is secured through this legally binding contract. An advantage of a personal guarantee is that it does not risk the borrower’s personal or business assets. However, LoanBuilder may demand additional collateral in specific loan plans. In such a case, they operate on the UCC-1 blanket lien where the creditor gets a legal claim over all the business assets in case of non-payment.

Eligibility and documents required

LoanBuilder usually offers short-term and business loans. It charges a certain fee from the borrowers instead of charging interest on the loan amount. The borrower needs to fulfill some minimum qualification criteria to get an approval for a loan. To qualify for a business loan, the borrower should own a business based in the country. The business should have been in existence for a minimum duration of 9 months. The organization’s owner should have a credit score of above 550. The annual business revenue earned by the business should be at least $42,000.  However, LoanBuilder does not extend loans to some types of businesses. One can find the list of these sectors on their website.

WebBank, the bank which is responsible for the origination of the loans from LoanBuilder, generally takes part in the process of depositing funds to the borrower’s account. The funds are transferred on the day after the loan is approved. Repayment of a loan is not cumbersome as LoanBuilder deducts the payments on a weekly basis from the account.

Interest rate and loan term (fees)

The terms and fees are variable and depend on the pre-qualification criteria. LoanBuilder demands a certain fee from borrowers for a short period. The amount that can be borrowed ranges from $5000-$500,000 approximately and the loan tenure can range from 13-52 weeks. LoanBuilder charges a one-time borrowing fee that is about 2.9%-18.72% of the total loan amount borrowed. They do not charge an origination fee. Thus, there will be no deduction on the amount that you will receive.

Application process

LoanBuilder has an easy and convenient application process. The borrower needs to enter some details in the application form. They can sign in through their PayPal account as well. The five steps in the process of application involve information about the borrower’s contact address, personal details, business location and its details, and identity verification details. One needs roughly 10 minutes to complete the whole process.

In the contact information section, LoanBuilder will ask for the name, contact number, email ID, loan proceeds, and the intended use details. One must supply valid personal information. Business details specifically include the trade name, incorporation state, DBA, the employee number, the type of business, and the sub-industries it accommodates. One needs to submit other documents like birth certificate, federal taxes ID, SSN, and so on. They will also carry a soft credit check to confirm your credit score, and through this number, they will determine the loan amount.

LoanBuilder