![]() That’s why, as we said above, we recommend going with another lender if you have the revenue to do so.īut if you do decide to stick with LoanBuilder, you’ll at least have the option to tweak your loan a little.ĭisclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. Those aren’t the worst rates and terms for financing, but they’re far from the best we’ve seen. As far as we can tell, you can get a loan term of up to one year―though terms as short as 15 weeks may be possible. Whatever your loan size and fee rate, you’ll repay it with automated weekly payments from your business bank account. LoanBuilder’s website, though, showed example loans with fees ranging from 2.8% to 187%. Borrowers commonly reported fees ranging from 12% to 14%, making LoanBuilder a somewhat expensive financing option. ![]() That means you don’t get a discount for repaying your loan early, because your fee never changes. So LoanBuilder financing can probably help with many working capital needs, but it probably won’t be big enough for larger projects.Īlso, instead of charging interest on your loan amount, LoanBuilder charges a flat loan fee. That said, we saw more reports of smaller loans―think $40,000 or less. We saw borrowers state they’d been approved for some moderately sized loans, with the largest size we saw being $500,000. But since most online lenders look for one year or more (and traditional lenders look for two years or more), LoanBuilder still comes in on the low side. Other lenders, like Lendio, will accept younger businesses with 6 months or less. LoanBuilder will accept a mere nine months in business. It’s also got pretty low requirements for how long your business has been around. You don’t even need a PayPal account to qualify. And keep in mind, that your revenue doesn’t need to come from PayPal sales at all. In other words, LoanBuilder’s revenue requirement is seriously low―even lower than a lender like Lendio (which asks for only $50,000 a year). For reference, your average alternative lender will look for $100,000 or more, while a traditional lender (a bank or credit union) will usually require $200,000 or more. It asks for just $42,000 per year in revenue. On the one hand, it has some of the lowest revenue requirements we’ve seen. ![]() ![]() LoanBuilder has kind of unusual borrower requirements for an online lender. ![]()
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