In-depth Analysis

LoanBuilder Review 2024

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Written By
Julija A.
October 07, 2023
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We recommend LoanBuilder, a PayPal service, to borrowers with good credit who need a short-term capital infusion fast. After conducting our own in-depth research, we’ve come to agree with numerous LoanBuilder reviews that praise this lender for its loan term flexibility and cost transparency.

$5,000 - $500,000


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Fortunly Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

$5,000 - $500,000
13 to 52 weeks
24.83% - 49.94%
2.9% to 18.72% Total Loan Fee; $20 Returned Item Fee
24 hours
At least 9 months
$42,000 a year
All 50 states + DC
pros thumb up Strengths
  • Cost transparency
  • Rates tend to be inexpensive
  • Multiple avenues of customer support
  • Useful Loan Configurator tool
  • Funds transferred directly to your business checking account
  • A PayPal account isn’t obligatory
  • Funding for businesses less than a year old
  • Automatic payments
pros thumb up Weaknesses
  • No benefits for repaying the loan early
  • The list of non-eligible industries is lengthy

LoanBuilder Overview

loanbuilder home

Formerly a product offered by a small business financier called Swift Capital, LoanBuilder became a part of the PayPal brand in 2017 when the payments company acquired Swift. Even though LoanBuilder has been taken over by PayPal, it’s unrelated to the payment processing company’s main service, and borrowers don’t need a PayPal account to obtain funding.

Also marketed as PayPal Business Loans, LoanBuilder should not be confused with PayPal Working Capital, another financing service offered by the lender’s parent company. Although both options provide short-term business loans, PayPal Working Capital is only available to PayPal sellers.

In contrast, most businesses can apply for funding from LoanBuilder, regardless of whether or not they use PayPal. Another difference lies in the fact that LoanBuilder offers higher possible borrowing amounts – up to $500,000 – based on the business’s entire revenue rather than just its PayPal sales.

LoanBuilder reviews praise this lender as a great one-stop shop for borrowers on the hunt for short-term loans with fast funding. Along with the loan amount, borrowers repay only a predetermined fixed fee (the “total loan fee”), and provided that all documents are in order, accessing funding takes no longer than a day.

While it’s true that other business financiers may have similar funding options, LoanBuilder stands out from the competition for a few good reasons: borrower requirements are low, the loans are relatively inexpensive, and there are no upfront fees, such as an origination fee.

How Does LoanBuilder Compare to Other Lenders?

LoanBuilder Logo
APR Range:

24.83% - 49.94%

Min. Credit Score:


American Express Business BlueprintTM Logo
American Express Business BlueprintTM
APR Range:

24% - 100%

Min. Credit Score:


OnDeck Logo
APR Range:

9% - 98%

Min. Credit Score:


LoanBuilder Financing Types

The LoanBuilder PayPal service offers a single type of business financing: short-term loans. Short-term loans are among the most common types of business funding. The borrower agrees with the lender to a loan term – the amount of time the borrower has to repay the balance plus the fixed interest.

This type of financing is usually the first choice for companies with good cash flow that require some funding and plan to pay the debt off in a few months rather than over a number of years.

Short-Term Business Loans

If you’re looking to borrow between $5,000 and $500,000 and plan to pay that money back in less than 12 months, you should consider borrowing from LoanBuilder.

To check eligibility, all you have to do is fill out a short questionnaire online. When prequalified, business owners will be able to see their estimated LoanBuilder rates and adjust the loan amount and term length until they’re happy with the offer.

However, before you start filling out the questionnaire on the lender’s site, we suggest you make sure that you and your business meet the minimum requirements. To qualify for a short-term loan, your business must:

  • Be active for a minimum of nine months
  • Generate a minimum of $42,000 in annual revenue
  • Have a minimum FICO score of 620 (business owner’s credit score)
  • Be based in the United States
  • Not have any active bankruptcies

LoanBuilder Application Process

Provided that you meet the minimum eligibility criteria ($42,000 in annual business revenue, at least nine months in operation, and a personal credit score of at least 620), you can start the application process for a PayPal business loan online or, alternatively, over the phone.

To apply for a short-term loan online, you’ll need to go through the following steps:

  • From the homepage, click “Check Eligibility” to start your application.
  • Fill out all the business and personal information fields.
  • Review and adjust the loan terms your business is eligible for and upload any documents the lender may require.

What information do I need to apply?

To complete your LoanBuilder application, you’ll be asked to submit the following information:

  • Business phone number and address
  • Business start date
  • Business tax ID number
  • Total annual revenue
  • Owner’s Social Security number

You’ll also need to choose your primary loan purpose. Here’s a list of all acceptable answers for the LoanBuilder PayPal service:

  • Buying out business partners
  • Cash flow for delayed accounts receivable
  • Covering personal obligations
  • Marketing
  • Payroll
  • Paying off another business debt
  • Leasehold improvements or expansion
  • Opening a new location
  • Purchasing current business location
  • Paying vendors, bills, or rent
  • Purchasing another business
  • Purchasing vehicles or other equipment
  • Purchasing inventory
  • Repairs or maintenance on vehicles or other equipment

After you’ve completed the questionnaire, LoanBuilder will let you know whether or not you’ve been able to meet the PayPal business loan requirements. To determine eligibility, LoanBuilder assesses your business’s financial health and your personal credit history.

Note that this stage of the application will not affect your credit score. If your loan gets pre-approved, you’ll be able to see your estimated interest rates and fees. From there, the LoanBuilder Configurator will let you customize your term length and borrowing amount.

Once you’ve settled on loan terms that you’re happy with, you’ll be able to go ahead and complete the full application. At this point, based on your business’s situation, the lender may require you to upload some documentation.

In some cases, the only required documents are a couple of your most recent business bank statements. However, it’s best to be prepared to provide additional paperwork. Either way, according to LoanBuilder reviews, the lender’s funding experts never fail to explain exactly what is needed and why.

In this stage of the application, LoanBuilder will perform a hard credit inquiry. Note that this may have a small impact on your FICO score. After the credit check is completed and you get approved for a loan, you’ll be sent a contract. From there, you’ll just need to sign the contract electronically and you’ll receive the funds.

On approval, WebBank – the bank accountable for originating PayPal loans – will deposit the funds into your checking account. If your loan is approved before 5 p.m. EDT on weekdays, you can expect the funds to transfer the next business day. If your approval process is completed later than 5 p.m., or during a weekend, the funding will probably take a little longer.

In-Depth Presentation of LoanBuilder Features

LoanBuilder provides short-term loans ranging between $5,000 and $500,000 for periods from 13 to 52 weeks. The main reasons we recommend this PayPal business loan provider are its transparency and flexibility. Before you settle on certain loan terms, the lender lets you check your eligibility (by filling out a short questionnaire), review the terms of your prospective loan, and customize the offer to your liking.

Although LoanBuilder’s short-term funding is a solid choice for those seeking quick financing solutions, it’s not the most cost-effective solution. However, borrowers on the hunt for the lowest-cost opportunities will surely be better off with a longer-term option.

Loan Amount and APR Details

As far as LoanBuilder interest rates and fees go, the deal is simple – the shorter the term, the lower the cost. While the fees are usually not too high, short repayment terms result in large weekly payments. On the bright side, rates are completely transparent, with no hidden costs.

  • Loan amount: $5,000 – $500,000
  • Total interest rate: 6.49% – 19.4% (24.83% – 49.94% APR)
  • Fees: No origination fee, no closing costs, $20 returned payment fee
  • Loan term: 13 to 52 weeks
  • Repayment options: Weekly

The cost of a LoanBuilder loan is expressed as a fixed total interest charge (the “total loan fee”). Determining your PayPal loan rates is easy – all you have to do is multiply your desired borrowing amount with the total interest rate that you qualify for and you’ll get the total amount that you’ll need to repay.

Here’s an example: if you wanted to borrow $100,000 and you had a borrowing interest rate of 10%, in total, you’d have to repay $110,000.

Keep in mind that the LoanBuilder’s Total Loan Fee isn’t a synonym for APR. Unlike APR, which increases over the life of the loan, LoanBuilder fees are only calculated once, and don’t change until the end of the loan term.

Apart from the loan amount, loan term, personal credit history, and the business’s overall financial health, the total interest charge will also depend on any previous experiences that you may have had with LoanBuilder or Swift Financial.

LoanBuilder does not charge origination or closing fees, so you don’t have to worry about anything being deducted from the amount of funding you receive. Aside from potential late payment or non-sufficient fund (NSF) fees, the fixed borrowing fee is the only cost that PayPal Loan Builder will charge you.

Given that the lender’s borrowing fees can go up to 18.72%, it’s still safe to say that they are not the most expensive in the industry, but they are hardly a bargain.

With a maximum of 52 weeks, the repayment period is pretty standard for short-term funding options. Should you decide to go for an even shorter loan term, bear in mind that each repayment amount will be significant.

This funding provider does not ask for any specific collateral, however, much like many online lenders, LoanBuilder requires a UCC-1 blanket lien. You’ll also need to provide a personal guarantee.

Eligible and Non-Eligible Businesses

Although LoanBuilder is well-known for having relaxed borrower qualifications, its list of ineligible industries is lengthy and includes financial services, nonprofits, artists, and even attorneys. If your business belongs to one of these fields, you won’t be able to qualify for funding from Paypal LoanBuilder. Here’s the complete list of non-eligible industries and occupations:

  • Agents and managers for public figures such as artists, athletes, and entertainers
  • Public administration
  • Attorneys
  • Professional and business associations
  • Collection agencies
  • Junior colleges, elementary and secondary schools
  • Grant-making foundations
  • Credit bureaus
  • Financial services
  • Gun stores
  • Gambling and gambling-related businesses
  • Holding companies and management companies (without subsidiaries included)
  • Independent artists, writers, and performers
  • Manufactured and mobile home dealers
  • Automobile, RV, ATV, motorcycle, personal watercraft, and boat dealers
  • Voluntary health organizations
  • Environmental, conservation, and wildlife organizations
  • Civic and social organizations
  • Human rights organizations
  • Political and labor organizations
  • Religious organizations
  • NGOs

LoanBuilder Repayment Terms

Each week, LoanBuilder will automatically deduct a fixed amount from your business checking account via an ACH payment. We suggest you avoid moving your money around in a way that might leave your bank account short come payment day.

While you can’t opt for a daily or monthly repayment schedule (the weekly system is the only option), you can choose the day of the week when LoanBuilder will deduct the funds. That way you’ll still have some control over how you pay the PayPal loan off and avoid the non-sufficient fees more easily.

The minimum loan term is 13 weeks, while the maximum is 52 weeks. Should you decide to pay the loan off early, note that there will be neither penalties nor a reduction in interest.

The Bottom Line

LoanBuilder’s funding is fast, simple, flexible, and more transparent than your average business loan. Thanks to its Loan Configurator tool, this lender is praised as one of the few providers that offer upfront rate estimates to borrowers who are still just exploring their options.

Overall, LoanBuilder could be a solid funding option for businesses that need a quick capital infusion and are confident that they will be able to keep up with the pay-off dynamics.

Based on PayPal LoanBuilder reviews, this lender is a good choice for the right type of business. However, considering the unforgiving weekly repayment schedule, those with unpredictable cash flow should make sure to explore other options.


Will applying for a business loan from LoanBuilder affect my credit?


Filling out the questionnaire online or via phone will only assess your business’s eligibility and give you the opportunity to review estimated offers (if eligible) without affecting your credit score. So when does PayPal credit do a hard pull? Should you decide to accept the offer and complete the full loan application process, a hard credit pull will be performed, and this might affect your credit score.

Does LoanBuilder report to credit bureaus?


Loan Builder doesn't report your payments to credit bureaus, so timely repayments won't affect your credit for the better. On the bright side, they can improve your chances of getting a good deal on another PayPal loan.

How can I contact LoanBuilder's customer service?


You can get in touch with LoanBuilder's customer service team by emailing [email protected] or by calling 1-800-347-5626. Support agents are available from 9 a.m. to 8 p.m. ET Monday through Friday and from 11 a.m. to 3 p.m. ET on Saturdays. According to Loanbuilder reviews, the customer care staff take no longer than a few minutes to respond.

Can I change my payment date?


Although you can’t opt for a daily or monthly repayment schedule, you still have some control over when you make payments, as you can change the day of the week LoanBuilder will deduct funds from your checking account.