PayPal is primarily an online payment system founded by Elon Musk. But it’s also a company that offers a few unique funding options. For business financing, they offer their PayPal LoanBuilder service.
LoanBuilder takes a different approach to give you the right loan. The idea is that they aim to make the whole lending process faster for you with an easy repayment structure. They help you get set-up and funded quickly so you can focus on what matters: your business. Also, LoanBuilder has clear standards for the loans they offer you, which we will take a closer look at.
PayPal Loanbuilder Special Qualities & Features
Diverse Term Loans
PayPal Lendbuilder only offers one type of loan: a business term loan. But they offer a very diverse array of term loans. Eligible businesses can receive anywhere from $5,000 to $500,000 in funding. Terms are always short, lasting between 13 and 52 weeks.
Estimations Without A Credit Check
You can play around on the LoanBuilder platform to get a taste for the terms you’ll be offered. After you are part-way through your application, you will be sent to the “check eligibility” section. Here, you can get prequalified without consenting to a credit check. So, your credit score won’t take a small hit just because you wanted to shop around for loan options.
More from LendingBuilder – Free Credit Score Online: What’s Your Score?
Fast Short-Term Loans
If you need a business loan fast, PayPal LoanBuilder was meant to match you with the right fast business term loan. The service is good at what it does. But, if you want a term loan you can repay in over a year, you have to look elsewhere.
Build Your Own Loan with LoanBuilder Configurator
The LoanBuilder Configurator is a tool for making your loan hunt easier, allowing you to “build your own loan” in a sense. The tool analyzes your:
- Available credit
- Credit history
- Estimated annual revenue
Using this analysis, you can adjust a sliding scale for the terms you need. You can adjust sliding scales for:
- Loan amount
- Loan term
- Estimated interest charge
- Weekly costs
- Total repayment amounts
If they can give you a loan based on your criteria, you will be shown a potential offer. From here, you can choose to apply for a loan that matches your search.
This tool makes the whole searching process so much easier. The best part is that none of it requires you to give PayPal any personal information. You can play around with the LoanBuilder Configurator before applying for loans. Only when you want to take a loan out will you be asked to submit personal information and consent for a hard credit pull.
While PayPal isn’t the best at everything, all of the companies’ products are straightforward. The same can be said of their LoanBuilder service.
Pricing & Terms
PayPal LoanBuilder doesn’t advertise APRs found on the platform. APRs start at about 7%, in large part due to one big “borrowing” fee they charge.
When you take a loan, there are no sneaky fees on PayPal LoanBuilder. There are also no origination fees or early repayment fees for loans on LoanBuilder. Apart from interest rates, you just need to pay one fee for taking a loan. That “borrowing fee” will cost anywhere from 6.49% to 19.31% of the value of the loan. This fee is straightforward and not hidden, but it is quite high. One of the biggest complaints about LoanBuilder is how much the borrowing fee increases the APR for their loans.
Do I Qualify For PayPal Loanbuilder?
Because PayPal LoanBuilder offers different loan terms, they accept many borrowers. The minimum requirements for a LoanBuilder loan are:
- A minimum annual revenue of $42,000
- At least 9 months in business
- A credit score of at least 550
These requirements are fairly low. Many online lenders will offer bad credit loans to borrowers with bad credit. Still, these requirements are about average for an online business loan. In particular, the revenue requirement is very lax.
Keep in mind that a higher credit score and revenue will get you better terms.
Factors To Keep In Mind When Using PayPal Loanbuilder
More Thorough Checks
The minimum requirements for a PayPal LoanBuilder loan are not so stringent. But, when you sign up, you will need to provide a lot of information about your business. Be ready with as much information about your business as you can when you sign up.
Potentially High Rates
PayPal’s transparency is great, but sadly it doesn’t make its services any cheaper.
The borrowing fee you get on a PayPal LoanBuilder loan will drive the APR on any loan up at least 6.49%. If your credit is bad or your revenues are unstable, you will have to pay high APRs.
PayPal Loanbuilder: The Last Word
PayPal LoanBuilder is a service that offers what PayPal is always good at. High rates but honesty are what you can expect.
If you have bad credit or just need a fast loan, LoanBuilder is a great resource. If you’re curious about the rates you can get with them, you can always look at their Configurator. When it comes to bad credit loans, LoanBuilder is one of the least sneaky lenders you can find.