PayPal Loanbuilder

SERVICES OFFERED BY LOAN BUILDER

LoanBuilder issues short-term business loans. While many other business financiers offer similar funding, LoanBuilder stands out from the pack for a few reasons: the loans are relatively inexpensive, borrowers don’t have to pay an origination fee (or any other upfront fees), and borrower requirements are low.

HOW IS LOAN BUILDER DIFFERENT FROM PAYPAL LOAN?

LoanBuilder and PayPal Business Loans are one and the same. In fact, you may notice that when you begin the application questionnaire, the service is called PayPal Business Loan instead of LoanBuilder. At one point there had been plans to phase out the LoanBuilder brand name, but that hasn’t happened yet.

HOW IS LOAN BUILDER DIFFERENT FROM PAYPAL WORKING CAPITAL?

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

PayPal Working Capital is a useful tool, but it’s only available to PayPal sellers. By contrast, LoanBuilder can be used by most businesses — PayPal sellers or otherwise. LoanBuilder also offers higher possible borrowing amounts, and the amount merchants can borrow is based on the business’s entire revenue (not just its PayPal sales). Check out the next section to see if you have a good chance to qualify for a LoanBuilder loan.

LOANBUILDER BORROWER REQUIREMENTS

LoanBuilder has pretty relaxed borrower qualifications, but its list of ineligible industries is rather lengthy and includes attorneys, nonprofits, financial services, and others. Below are the minimum requirements your business must meet to have a good chance of qualifying for a LoanBuilder loan:

Time In Business: 9 months
Business Revenue: $42,000 per year
Personal Credit Score: 620

Ineligible Industries (click to expand)

Your business must also be based in the United States. Additionally, you must not have any active bankruptcies.

LOANBUILDER INTEREST RATES & FEES

Rating: Good

Here are the current rates and fees for LoanBuilder loans:

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: Learn more
Collateral: UCC blanket lien

LoanBuilder loans are available up to $500,000 for qualified borrowers. LoanBuilder rates are one-time fees ranging from 2.9% to 18.72% of the borrowing amount. While no specific collateral is required to qualify, a blanket lien is required as a condition of receiving a LoanBuilder business loan.

LoanBuilder borrowing fees are usually not too high. However, the loans have relatively short repayment terms, making for large weekly payments.

LoanBuilder expresses the cost of the loan as a Total Interest Percentage. Determining your borrowing fee is easy — simply multiply the Total Interest Percentage by the borrowing amount. For example, if you are borrowing $100,000 and you have an interest percentage of 10%, you will have a borrowing fee of $10,000. In total, you would have to repay $110,000. Note: the Total Interest Percentage is not the same thing as an interest rate or APR. Unlike interest, which accrues over the life of the loan, LoanBuilder’s borrowing fees are only calculated once and stay the same for the loan term.

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