topic Re: Approved for Loanbuilder/Paypal in Business Credit

Approved for Loanbuilder/Paypal

Anonymous — Tue, 28 Aug 2018 00:03:11 GMT

I'm wondering if anyone on the board has any experience with Loan Builder by Paypal. I was just approved for $15k for my business. The paperwork was minimal but did require my K1 tax return, 4 bank statements and utlity bill with business name on it.

I am happy to get the loan but because it requires a weekly payment over 39 weeks, it's a little bit of a pressure cooker. I won't use all of the money, so that is a good cushion to pay it back, but I'm sure anyone who has a young business (almost a year and a half) understands.

Re: Approved for Loanbuilder/Paypal

Creditaddict — Tue, 28 Aug 2018 15:22:22 GMT

Some other options like Kabbage are monthly payback.

Fundbox.

Re: Approved for Loanbuilder/Paypal

Anonymous — Wed, 29 Aug 2018 04:01:34 GMT

Their interst rates can be high. The lowest i've seen in 13.5% APR. They try to fool you by giving you 'cost of money' rates or simple interest rates.

Re: Approved for Loanbuilder/Paypal

lindsaydruart — Mon, 24 Sep 2018 01:59:51 GMT

I have a loan with them that comes due in December. I don't particularly like the weekly payment but it has been no muss no fuss. It was great for when we needed it but I'm glad it's almost paid off. Paying the full time frame costs a fortune.

Re: Approved for Loanbuilder/Paypal

Anonymous — Fri, 02 Nov 2018 04:53:21 GMT

They are relatively quick as far as application process and approval, but the rates, term, and weekly payment can be killer if you're not careful. You're also stuck paying the whole amount including interest, even if you payback early, so in essence, its a very harsh prepayment penalty. Personally got 30k at 9% cost of loan, which in effect, is a 34% APR.

If you miscalculate, a loan like this can easily put you under. Add contingencies for how long you expect to take to pay back, and if necessary, ask for a bit more than you actually plan to use so the extra is availble to make payments on the loan.

Would I do it again? probably not. It's worth it to cultivate your credit so you can go the traditional route for much lower cost and far superior terms.

Re: Approved for Loanbuilder/Paypal

Anonymous — Mon, 08 Jul 2019 02:39:26 GMT

Do they report to the 3 personal major credit bureaus?

Re: Approved for Loanbuilder/Paypal

Creditaddict — Mon, 08 Jul 2019 03:58:45 GMT

Business. No personal reporting