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LoanBuilder: A PayPal Service Review

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LoanBuilder: A PayPal Service Review

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Date Established
2006
Location
Wilmington, DE
Erica Seppala

Erica Seppala

Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.



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26 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Du Alent

    DO NOT APPLY FOR PPPL with them – paypal should be ashamed the loanbuilder loan wastes your time and is obviously NOT interested in providing PPPL to small businesses.They have you provide them private personal business and tax records only to tell you that you only qualify for loans that are x% or that your credit score is not good enough.PPPL rules do NOT allow determination of loan based on credit.PPPL is a 1% loan that may be forgiven not 3-5% loan.We’ve seen several clients WASTE their time with this PAYPAL advertised PPPL lender WHEN they are obviously NOT interested in following the rules and providing PPPL based loans.At the worse possible time – PAYPAL and loanbuidler FAIL the small business community that they should be supporting. In my opinion it couldn’t be worse. I will NOT be using PAYPAL in future if I can at all avoid it and we should ALL seek accountability for their failure during this crisis.THANK GOOD I know other financial institutions that will complete this type of loan as required by PPPL.I will also have to monitor the Merchant Maverick (small business made easy) BECAUSE what I’ve seen is NOT making small businesses easy at all!Du Alentdualent@gmail.com

    1
      Jessica Dinsmore

      Hi Du,

      No specific credit threshold has been stipulated, however, there’s nothing in the rules that forbids lenders from checking credit and it makes sense that they would. Payment history and derogatory remarks, delinquencies, judgments, etc., will be considered. So it’s possible that if a client of yours had an unsatisfactory payment history, the lender may not be willing to offer a PPP loan, and thus offered an alternative at a higher interest rate. Approval is not guaranteed, unfortunately. We do work tirelessly to provide accurate and unbiased information to the small business community at no charge, in an effort to provide information to business owners so they can make smarter business decisions. I’m sorry you had a negative experience with Paypal – you aren’t alone! There are many options out there, and what works wonders for some, will fail miserably for others, unfortunately. If your clients are still looking for funding, we have a great resource on PPP /EIDL alternatives that may be helpful.

      We’re on your side and wish you the best!

        Boris

        Terrible Company. my business suffered from covid-19 and i applied with paypal loanbuilder . they approved me and i signed the documents after a week the emailed me saying they don’t cover this industry. unbelievable wasted my time. beware of this company. they just want your information and then decline you. my score is 735 so its not that. go with your local bank and don’t use them.

        1
          Kristine C

          Organization Name: Exodus Design

          I do business with PayPal all the time. They have been my “goto” for years. However, I applied for the PPP loan through their recommendation and partnering with web bank/loanbuilder. I filled out all the info, uploaded all my documents. Waited. Was denied based on my credit score of 661. They also noted I “Did not supply information requested”. I was NOT notified or contacted to supply them with additional info.My credit records has my STUDENT LOAN which paid off in full, but had 3 late payments back in 2014 and a LEGALLY PAID IN FULL account, which I paid off in 2019, $5000 on $5500. That is why I was denied. THIS PPP supposed to be guaranteed by the government. WHY so harshly denied???? I am VERY upset at this.

          1
          • Organization Name: Exodus Design

          We've done in-depth research on each and confidently recommend them.

          TERRI ONEAL

          Organization Name: River Arc Ltd Co

          I applied for the PPP through Loan Builder. I received an email from Loan Builder on Documents they needed. Drivers License, certificate of Business Certificate and payroll calculator and verification documents and copy of bank statement. I uploaded all the documents.A couple days later I go to check on status and Loan builder says I have no open loan applications.Since I have sent several emails asking about what has happened with no reply.Unbelievable and so disappointing. Small businesses are starving, unable to pay their bills and this is the treatment we get. I have wasted 2 weeks depending on LoanBuilder. Go somewhere else if you are in need of funding. I give them an F

          1
          • Organization Name: River Arc Ltd Co
          Todd Ingram

          Organization Name: 3solutions llc

          Nothing but a loan process, using the wording of sba ppp application, BS..

          • Organization Name: 3solutions llc
          Debra

          I suggest NOT wasting your time utilizing Loan Builder for Covid-19 PPP Paycheck Protection Program.On the same day, I applied through 2 sources (Square Capital and PayPal Loan Builder) for the Pandemic Federal Assistance Program, PPP for paycheck protection.I have been approved through Square, forwarded to the SBA which is now in the process of finalizing my request.At the same time, PayPal Loan Builder for PPP Program, sent me an e-mail that they were “unable to verify my identity” yet, further in the e-mail, provided me with my personal credit score in the e-mail as well as notified me which site they utilized to pull my business credit. A direct contradiction, because if you weren’t able to verify my identity, then what type of reckless and fraudulent process did you take to move forward with pulling credit? If you can’t verify me, then why did you pull both personal and business? And by the way, this is supposed to be a business driven program, and has nothing to do with credit personally. And, businesses that follow the rules will actually have this translated into a grant.I suspect that PayPal is adding criteria on top of the government’s qualifications, and like banks did with round 1 funding a couple weeks ago, they are personally picking who they want to distribute funds to. I’ve already notified the Consumer Finance Protection Bureau (CFPB), the Better Business Bureau (BBB), Governor Ducey, and Greg Stanton with the House of Representatives. I was also one of the leads in our small business group that managed to get a story published on CNN about the handpicking of clients by banks. I’ll be contacting the story editor again and asking him to do an update, with my new information about this.In the end, I’m glad I made the move from PayPal merchant processing to Square last year. And very glad I’m not partnering with Loa nBuilder, and would absolutely not recommend Loan Builder for the PPP program.

          1
            Ruth

            I need to reset my password on loanbuilder. It gives me the option for New password, then confirm new password, then a box that say “ANSWER” What goes in that box?

              Jessica Dinsmore

              Hi Ruth,

              Unfortunately, we don’t have the answer either. You’ll probably want to reach out to LoanBuilder directly to get some assistance with your password reset. Sorry we can’t help!

                John deppen

                Organization Name: City Buzz, inc

                I began w a wonderful experience w my first loan. Very quick and efficient.The additional funds request is/was a complete nightmare It was like they never dealt w my business before. Asking for extreme amount of information- even w my perfect payment historyAfter 3 weeks I gave up and cancelled the application. I’ll never due this route again

                1
                • Organization Name: City Buzz, inc
                John Hall

                Organization Name: Elixir Liquors

                PayPal Loan Builder service is complete bullshit. They promise big loans and fast service and provide neither!I’ve run a successful small company for 17 years, with well over a million in sales annually for many years running ($1.4 million in 2019). Originally, PPLB said I qualified for up to $290,000 based on my sales (proven with bank statements). I applied for $50K, and was told I’d have an answer in just a couple days. I waited and waited and then, over a week later (allegedly waiting for underwriters!), they offered a loan of just $5K, less than 2% of the original $290,000!That’s not even worth the ding on my credit report. It’s nothing, peanuts! $5000 won’t cover even one week’s worth of expenses. What a waste of time! Half of America is shut down due to Covid19, and PayPal doesn’t give a shit.If you need a loan for your small business, look anywhere but there. PayPal Loan Builder is a bullshit service. They may be able to help you, but they won’t. Instead, they’ll just insult you after wasting your precious time!

                1
                • Organization Name: Elixir Liquors
                M J Mastalski

                Organization Name: JustJak’s

                After speaking with the loan representative, providing the lengthy amount of requested documents, screenshots, and all information required for the loan, we were informed we were approved and the underwriting department would be completed at the end of the day (after the week long process). We received ok communication by the end of the day and made a follow up phone call to check with our representative about any other details for clarification. We did not receive a return call or email. We followed up with our representative via email on Monday and no return communication was made. We called and again no return communication occurred.Tuesday (today), we made a follow up call and spoke with our representative who subsequently informed us that the Loan Builder program decided to not move forward with the loan. This is contrary to our told we were approved days earlier. If the company is the inefficient and indecisive, I would be wary of their application process and validity of loans made to applicants. This is a process that was bait and switch. The reasons listed were never discussed as issues or potential preventative reasons during the application process.I would be wary and search for a much more reputable and stable lending organization. Do not just jump at any money offered—be thorough in your search. We are more than happy to not have a loan with such a devious and deceitful company. Our process was not thoroughly ethical and being lied to is not professional or respectful of us as the one looking for lending. We do not recommend this organization—loan seekers beware.

                1
                • Organization Name: JustJak’s
                T.j Eberhart

                Organization Name: PACKMAN LLC

                Its sad that these types of loan sharks are even legal. im definitely not dealing with them. i was kinda excited to try them out…well can anyone help me with a decent loan company for small business?

                1
                • Organization Name: PACKMAN LLC

                This comment refers to an earlier version of this review and may be outdated.

                Emily Hale

                Hi T.J.!

                I’m glad you reached out and asked this! We certainly do have many resources for you to find something you can feel more comfortable with in looking for a small business loan. Check out our post Best Low-Interest Loans For Businesses 2019. This resource will get you started, and will have plenty of other great resources within the post for further investigation. Thanks for reading, and best of luck on your search for an excellent loan company.

                  This comment refers to an earlier version of this review and may be outdated.

                  We've done in-depth testing of each and confidently recommend them.

                  Dave

                  I would to like inform you guys that loan builder has zero customer service. This company really don’t care to help small business secure funding or make them feel special when inquiring about their product for funding. It’s really sad actually! There underwriting department is pretty bad, and will make up every reason to not approval you.

                  1

                    This comment refers to an earlier version of this review and may be outdated.

                    Louie Fernandez

                    Organization Name: Totally Awesome Printing

                    Horrible experience with LoanBuilder, stay away from them. They lied to us at the beginning of the transaction and when we requested communication via email or written letter instead of the verbal phone conversations, they would tell us that they can’t utilize email, because they are only allowed to respond to customers with canned replies….This was a lie, because going through the application process, their sales people did everything via email.Nothing but lies, dishonest, and horrible customer service, they don’t follow through with what they say they are going to do.

                    1
                    • Organization Name: Totally Awesome Printing

                    This comment refers to an earlier version of this review and may be outdated.

                    Mark Olson

                    Organization Name: SWI, LLC

                    These guys absolutely SUCK! Horrible customer service, predatory lending at it’s worst.

                    1
                    • Organization Name: SWI, LLC

                    This comment refers to an earlier version of this review and may be outdated.

                    Terry Harris

                    Organization Name: Dalplex Direct Distributing, Inc

                    The LoanBuilder program offered by PayPal is fair when you objectively consider the cost of short-term capital. Secondly, you have to consider the cost-benefit as it relates to cost of loan to return on business activity. I took a loan for 26 weeks to buy some new vans for my ground logistics company and the increase business I was able to obtain immediately with having these extra vans on the road far excessed the cost of capital from PayPal. The loan process was not difficult and I was funded within three days.If I need another injection of working capital; I assure you PayPal LoanBuilder is the first place I will go. Thanks.

                    5
                    • Organization Name: Dalplex Direct Distributing, Inc

                    This comment refers to an earlier version of this review and may be outdated.

                    Rose

                    Organization Name: Forey Real Estate LLC

                    Agree! Quick, Easy! Professional direct service and communications!

                    • Organization Name: Forey Real Estate LLC
                    John

                    After reading these testimonials, I will stay away. Tkx

                      This comment refers to an earlier version of this review and may be outdated.

                      Roy Lange

                      Organization Name: Gadget Galaxy

                      STAY AWAY FROM THE PAYPAL FIXED FEE LOAN BUILDER PROGRAM! THE REAL INTEREST RATE YOU PAY IS ABOUT 50%APR OR MORE!!! BUT THEY STRUCTURE IT SO IT LOOKS LIKE ABOUT 20%…WHAT THEY DO IS THIS…I WILL USE THE LOAN I GOT AS AN EXAMPLE.THEY LENT ME $18,000 AND HAVE A $3500 FEE. SO I PAY THEM BACK $21,500 DIVIDED BY 52 WEEKLY DRAWS FROM MY BANK ACCOUNT OF $413. DO YOU SEE THE PROBLEM?AFTER ONLY 4 WEEKS, THEY GOT $1600 OF MY $18000, AND AT A PRORATED COST OF 228%APR FOR THAT MONTH! THEN MONTH #2 ITS 114% AND IT GOES DOWN SLOWLY TO 18 PERCENT FOR THE LAST MONTH’S $1600 PORTION OF MY LOAN…. NOW YOU AVERAGE THOSE INTEREST RATES OUT, AND……UGGGHHHHHH SCARY!!!!! I AM STILL WORKING ON IT, BUT IT LOOKS LIKE 50% OR EVEN MORE!!! RUN FROM THIS!!!!!!!!!!!!!!

                      1
                      • Organization Name: Gadget Galaxy

                      This comment refers to an earlier version of this review and may be outdated.

                      Amy N

                      I don’t think you are calculating what you think you are calculating. APR is simply Annualized Percentage Rate. You are paying $413/week and after 52 weeks, you are paying back $21500. that is 19.44% APR. If you were paying 50% APR you would take your loan amount of $18,000 * .5=$9000 and that $9000 would be the “fee” you would be charged or the interest rate for that year.

                      Unless you are just a troll….and in that case, kudos on the distraction pattern.

                        This comment refers to an earlier version of this review and may be outdated.

                        Jonathan H

                        I submitted a post that explained percentage vs APR but apparently the moderator deleted it. Maybe because I put a link to an external website that has an interest calculator.
                        Yes, $3500 is 19.44% of $18000. But percentage is not the same as APR since it does not take into account that the loan is being paid off over the course of the year.

                        For example, suppose you have a credit card with 19.44% interest rate and a balance of $18000. If you make equal payments (and don’t make any new purchases) such that it is paid off after one year you will find that the total amount of interest charged is a lot less than $3500. The reason is that as you pay it down the interest charged on each monthly statement will be less (i.e by the time you get to month 12 your balance will be about $1600 and interest will be about $26.
                        With the Loanbuilder loan you are paying $292 in interest EVERY month ($3500/12).

                          This comment refers to an earlier version of this review and may be outdated.

                          Candace Blackbird

                          Organization Name: Blackbird Mills INC

                          Very informative and I appreciate the review as I was leaning toward this for various reasons and your review brought to my attention an aspect I had overlooked! Thank You!

                          • Organization Name: Blackbird Mills INC

                          This comment refers to an earlier version of this review and may be outdated.

                          L G

                          Awful Customer Service
                          Unprofesional
                          Stay Away!

                            This comment refers to an earlier version of this review and may be outdated.

                            Alexander Pape

                            Organization Name: Finbro Construction, LLC

                            Very well-written helpful review.

                            5
                            • Organization Name: Finbro Construction, LLC

                            This comment refers to an earlier version of this review and may be outdated.

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