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LoanBack Review
-
Expert Analyst & Reviewer
UPDATED
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LoanBack
| Total Rating | 3.5 |
|---|---|
| Terms & Fees | Good |
| Application Process | Good |
| Sales & Advertising Transparency | Good |
| Customer Service | Good |
| User Reviews | Fair |
Pros
- Suited for small businesses and startups
- You choose the terms
- Valid in all 50 states
Cons
- 2% facilitator fee
- Email support only
LoanBack Overview
LoanBack is an online loan creator that helps lenders and borrowers create legally-binding loan agreements that can be shared online. LoanBack guides you through customizing the parameters of the loan, allowing you to add specific requirements, such as collateral and late payment penalties. Once the terms are finalized, you download a PDF of the loan agreement which you can then print out for signature.
Rather than being a lender themselves, LoanBack is simply an intermediary that lets friends and family come together to offer each other loans without having to involve lawyers. Sorry, lawyers!
Need to work directly with a lender? Compare top options:
Let’s take a closer look at exactly what LoanBack has to offer.
Table of Contents
Services Offered
LoanBack provides the cloud-based software necessary to create binding installment loan agreements between lenders and borrowers that can be used for funding a start-up business. For borrowers who haven’t yet found a willing lender, LoanBack provides a simple form which can be used to generate a personalized loan proposal.
Borrower Qualifications
LoanBack does not provide loans or process loan payments themselves — they merely facilitate loans between parties who already know each other via a simple DIY process that generates formal loan documents. Therefore, the only requirement is that both parties are of legal age and possess the capacity to enter into a contract.
Terms & Fees
LoanBack’s loans are endlessly customizable:
| Borrowing Amount: | Any |
| Term Length: | zero to 40 years |
| Interest Rate: | Any |
| Facilitator Fee: | None |
| APR Range: | Any |
| Collateral: | Depends |
Lenders and borrowers have two options when using LoanBack. They can use the LoanBuilder package for a one-time fee of $29.95, which includes the following features:
- Interest rate guidelines
- Provides a complete repayment/amortization schedule
- Automatically takes care of all the math (e.g. interest calculation, amortization, etc.)
- Supports custom loan terms
- Collaborate online with the other loan parties to finalize loan terms
- Online filing cabinet for your loan
- Optional email payment reminders
- Optional email activity alerts
- Record of all actions that have occurred during the life of the loan (payments, late fees, additional principal payments, etc.)
- Applicable federal rate (AFR) review
- A simple, easy-to-use loan building process
- Supports secured and unsecured loans
- Legally binding in all 50 states
- Customized PDF Loan Agreement for a physical signature
Alternatively, you can pay $14.95 and just get the loan forms in Word format. Nothing will be calculated for you, leaving you to do the heavy lifting.
Application Process
As LoanBack simply facilitates loans between interested parties by helping you generate loan agreements, there is no application process. Just buy one of the two LoanBack packages, fill out the forms, and poof, you’re good to go.
Sales & Advertising Transparency
Every aspect of the loan agreements you can generate is customizable and presented right there on the website. LoanBack just sells the ability to make your own loan agreements and is not involved with the loan itself, so there isn’t really anything to hide on their part.
Customer Service & Technical Support
LoanBack provides four tutorial videos, a series of help articles dealing with things such as loan repayment options and the UCC, and email support via a contact form on their Contact Us page.
User Reviews
I was unable to find any reviews of LoanBack’s services, whether from professional reviewers or users. I guess that makes me the first.
Final Verdict
Those of you seeking a business or personal loan from an online lender should check out our various loan company reviews to learn about your options. However, if you already know a willing lender and just need to formalize the loan, LoanBack will help you generate your own loan agreement. There’s no arguing with the utility of such a service.
Considering that I don’t know of any lawyer who charges $29.95 for their services, LoanBack is a cost-effective means of entering into a legally-binding loan contract with an individual lender. If you’ve come to an understanding with a lender or borrower and just need to generate the necessary paperwork, consider giving LoanBack a whirl.
Need to work directly with a lender? Compare top options:
Jason Vissers
Expert Analyst & Reviewer at Merchant Maverick
Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.
View Jason Vissers's professional experience on LinkedIn.
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Best value website for the specific thing that it does which is to say a website that allows someone to codify a loan and track payments. I’ve done three private mortgages for family members where I am the lender and Loanback allows me to track them all. Yes, the website was lacking attention for awhile and either the site was down or the payments (and therefore creating a new loan) was down but it seems to be back up now.Some things that should be fairly easy to implement to improve overall functionality are: 1) implement a “Payoff” function that creates a payoff amount and associated daily interest charges for that happy time when a borrower can pay off their Promissory Note and 2) implement an annual “report of interest paid” so that a borrower can use that report to include on their IRS tax return and 3) allow borrowers to report good (or bad) payment behavior to the credit reporting agencies so that credit scores can be impacted by payment histories.All in all a good value.
Loanback has been a helpful tool in the past but unsure if it continues to be in business. From mid-March through early April it appears that only their home and loan landing pages are up … nothing past the sign-in page is working, including help pages, purchasing of product/agreement, loan maintenance, account, and all other pages. It’s frustrating as it’s been this way for more than 2 weeks and there is no relevant information published anywhere online that I can find via Google regarding issues with loanback’s site or whether they have closed.
This comment refers to an earlier version of this review and may be outdated.
The other day I logged onto Loanback to create a loan agreement and the website seemed to be functional. Now, I am just getting an error message leading me to believe the company is having problems with their website or they have gone out of business. Do you happen to know?
Basically all I’m trying to do is create a loan document that is binding . . . and offers a repayment schedule in the software.
Thanks
This comment refers to an earlier version of this review and may be outdated.
Hi Candace,
Unfortunately, we do not have any inside knowledge on the disposition of their company. Their website does seem to be up and running at last check though!
This comment refers to an earlier version of this review and may be outdated.
I’m a current customer of Loanback. They’ve had some problems this month ranging from being completely down, to now showing a message saying they’re having a technical problem once you log in. When it was down a week or so back I contacted them via facebook (couldn’t get to any other support channel at that time), and they responded that they were having some server problems and that it was being worked. They didn’t mention any ETA, but I may try to contact them again today to see if they can provide one. As such, don’t think they’re out of business, but they are just having some kind of significant technical problem.
This comment refers to an earlier version of this review and may be outdated.