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LoanBuilder Review: Expert Analysis & User Insights for 2023

LoanBuilder is a perfect solution for businesses looking for a short-term loan with clear terms and conditions. High-risk seasonal businesses or businesses that struggle with cash flow might find it ideal as well.

Loanbuilder review
loanbuilder logo
Min. Credit Score 550+
Loan Amount $5K– $500K
Loan Repayment
Loan Repayment 3 – 12 Month
Daniel Lewis
Written by:Daniel Lewis
MBA Accredited Investment Professional

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, Financial Expert


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses or reviews expressed in this article are those of the author alone and have not been approved or endorsed by any partner.

Expert Reviewer Verdict

LoanBuilder, a PayPal service, gives small businesses access to capital quickly, without dealing with any hidden fees. And no, businesses do not need a PayPal business account to apply. Pricing is competitive, and funds can be dispersed within one day of loan approval. The application takes just a few minutes and does not affect your credit score.

In this review, our team of expert reviewers has thoroughly analyzed and evaluated LoanBuilder small business loans. We will share our findings and provide our expert recommendations on whether LoanBuilder small business loans are worth considering.


What Is LoanBuilder?

LoanBuilder is a loan service offered by PayPal, a well-known online payment processor. It’s a direct lender facilitated by Swift Financial, a company that PayPal took over in 2017. The terms “PayPal Business Loan” and “LoanBuilder” are used interchangeably and refer to the same product.

LoanBuilder is designed to provide loans to small and medium-sized businesses looking to borrow $5,000 to $500,000. It offers similar terms and conditions to many other online lenders. However, LoanBuilder is a little bit clearer, a little bit quicker, and a little bit easier to qualify for. These facts make it stand out from even the best online lenders.



Is LoanBuilder the Same as the PayPal Working Capital Loan?

LoanBuilder and PayPal working capital loans are two completely separate products with different terms and conditions. The PayPal working capital loan is only for businesses that conduct their sales and payment operations through PayPal. LoanBuilder, on the other hand, does not require you to have a PayPal business account to apply.


LoanBuilder Pros and Cons

Low qualifying requirements
Moderate interest rates
Transparent fee structure with no hidden charges
High loan amounts (up to $500,000)
Funding in as little as 24 hours from loan approval
Only short-term loans available
Lien required on all loans
No discount for paying off the loan early

LoanBuilder Loan Features

LoanBuilder only offers a short-term loan, from $5,000 to $500,000. Terms range between 13 and 52 weeks and payments are made weekly. You choose the day of the week that the payment will be deducted from your account – this day cannot be changed afterward.

Term Length3 – 12 Months
Repayment PeriodWeekly
APR Range24% – 49% (6% – 19% fixed)
Min-Max Amount$5,000 – $500,000

LoanBuilder Rates, Fees, and Penalties

The fees and penalties associated with LoanBuilder are straightforward. Aside from a $20 Returned Payment Fee, the single fixed fee ranges between 6 – 19% of the total loan amount. While the fees are steep, borrowers like transparency above all else – they know exactly what they are getting into before they take out the loan.

Origination FeesNo
Prepayment FeesNo
Late Payment FeesYes
Maintenance FeesNo
Interest RateHigh (6 – 19%)
Additional Charges$20 Return Payment Fee.

LoanBuilder Eligibility Requirements

The eligibility requirements for LoanBuilder are among the lowest in the short-term lending market. To qualify for a loan from LoanBuilder, you’ll need a minimum credit score of just 550. Applying will not affect your credit, but if you choose to move forward with the loan, the lender will do a hard credit inquiry on your business and personal credit.

Here are 8 ways to build business credit

In addition to your credit score, LoanBuilder will look at your business as a whole, including your time in business and your annual revenue.

You also need to have a UCC 1 filing, which is typically filed with the Secretary of State. It is a standard procedure, and nothing to cause alarm, but it means that the lenders can go after your personal property if you fail to repay the loan. All of this is handled by LoanBuilder and you don’t have to do anything except apply for a loan.

Minimum Credit Score550
Minimum Annual Revenue$42,000
Minimum Time in Business9 Months
Minimum Loan Amount$5,000
Collateral/LienUCC 1 Filing

The LoanBuilder Application Process

LoanBuilder provides only short-term loans, making the application process quick and streamlined. It only takes 5 – 10 minutes to fill out this basic questionnaire.

You’ll know if you’re eligible for a loan within minutes. If so, you’ll complete the rest of the application, submit the required documents, and be funded as fast as the next business day from loan approval.

Required documents may include:

  • Personal and business tax returns
  • Bank statements
  • Business licenses
  • Business lease, if applicable

We recommend having these documents on hand to ensure your application is submitted as quickly as possible.

Note: Applicants requiring over $250,000 must call directly to apply.


LoanBuilder Customer Service

Even before the acquisition of Swift Financial by PayPal in 2017, the company was well-recommended for its high standard of customer care. This standard has been maintained and even improved since PayPal took over.

You can easily get in touch with a LoanBuilder representative over the phone for a smooth customer experience. The customer service provided by LoanBuilder is outstanding according to genuine reviews and testimonials, as well as prior expertise demonstrated by Swift Financial LLC.

Its customer service is why LoanBuilder is possibly the best short-term lender on the market right now. It brings transparency and a high standard of care to an industry that has historically been bereft of both.

LoanBuilder Positive Reviews

LoanBuilder has an outstanding rating on TrustPilot of 4.6 out of 5 stars. The positive reviews of LoanBuilder (i.e Swift Financial) on TrustPilot are almost entirely related to the quick and easy approval process with no strings attached. The main advantages cited are:

  • Fantastic customer service
  • The quick, easy, painless application process
  • Transparent terms and conditions
  • No hidden fees

LoanBuilder Negative Reviews

You won’t find many negative reviews of LoanBuilder (i.e Swift Financial). Its reputation is exceptional in the short-term lending industry, and it stands head and shoulder above the rest in this regard.

You may find negative reviews of PayPal and its payment processing services, which are not associated with LoanBuilder. These are about the payment processing facilities, not the loan services. LoanBuilder is a unique service, and Swift Financial has an excellent track record. Applicants have little to worry about when seeking a loan with LoanBuilder.

LoanBuilder Perks and Bonuses


LoanBuilder allows you to create your perfect loan with amounts and terms to match what you need. Payments are made weekly directly from your business checking account, but you get to choose the day (it cannot vary, though).


As part of the broader PayPal umbrella, LoanBuilder is about as transparent and reputable as it gets. With LoanBuilder, you will not be surprised by any hidden fees, as all of these are clearly disclosed at the outset of the loan. The fees are 6 – 19% of the total loan amount, without any additional fees. This makes LoanBuilder perfect for the short-term lending market, otherwise notorious for hidden charges.


LoanBuilder offers the following features to make the service more user-friendly:

  • The LoanBuilder Configurator Tool: helps you understand what you will be paying. You can adjust your term length to see how it will affect the interest rate before accepting the loan.
  • The PayPal Suite: of payment processing tools, including invoicing, loans, analytical tools, and more.

And for privacy, no data is transmitted to third parties and industry-standard encryption is used on all communications.

Final Thoughts

PayPal’s LoanBuilder is one of the most straightforward online loan providers. They offer short-term loans with clear repayment terms and charge just one single fixed fee. The customer service is exceptional, and few (if any) borrowers have run into any problems. The eligibility requirements are easy to satisfy, making it so many small business owners can apply for a short-term loan with LoanBuilder.

Frequently Asked Questions(FAQ)

How Do I Know If I Qualify for LoanBuilder loans?

To see if you qualify, fill out the questionnaire provided on the official LoanBuilder website. Within minutes, you will see what terms and conditions you qualify for.

What Is the Minimum Loan I Can Take Out?

The minimum loan you can take out with LoanBuilder is $5,000.

Are There Any Hidden Charges?

There are no hidden fees with LoanBuilder whatsoever. You pay a disclosed fee between 6 – 19% upfront with this provider. Aside from a $20 Returned Payment Fee, that’s it.

How Long Will It Take for the Funds to Get Into My Account?

Once approved, the funds can be in your account within 24 hours, provided you have complete documentation on the application. If your documents are submitted by 5 PM EST, the money should be in your account within the next business day. The funds are deposited into your business checking account, and you do not need to have a PayPal Business Account.

What Documentation Will Be Required?

It depends on your unique business after you have submitted the initial application. In many cases, though, you will need tax returns, bank statements, and any business licences or leases, if applicable. Your personally assigned loan advisor will talk you through this process – according to the reviews, these advisors are very responsive and helpful.

What Happens in the Case of a Default?

You are protected up to $250,000 by the FDIC. PayPal is very unlikely to default as a substantial global payments provider, and Swift Financial has a high amount of capital backing it up. If you default, though, the situation is much more severe. The company could instigate legal proceedings or claim your assets based on the lien/guarantee. Any late payments/defaults will lower your credit rating, too.

Will the Ucc-1 Lien Affect My Business Standing?

The existence of a UCC-1 filing will not affect your credit score unless you fail to make a payment on your credit obligations. An existing UCC-1 can affect your chances of obtaining further financing, but you can request your lender to delete it after the loan is repaid. In any case, it is never a good idea to take out multiple forms of short-term credit at the same time.

Daniel Lewis

Written by: Daniel Lewis

MBA Accredited Investment Professional

Daniel Lewis is an MBA accredited investment professional who wants to assist small business owners to gain access to finance. After going through many channels for funding, Lewis has found that getting the first loan right is vitally important for future success.

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Sarah Brooks Personal Finance Writer and Editor

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

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Dr. JeFreda R. Brown

Fact checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal...

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