We saw borrowers state they’d been approved for some moderately sized loans, with the largest size we saw being $290,000. That said, we saw more reports of smaller loans―think $40,000 or less. So LoanBuilder financing can probably help with many working capital needs, but it probably won’t be big enough for larger projects.
Also, instead of charging interest on your loan amount, LoanBuilder charges a flat loan fee. That means you don’t get a discount for repaying your loan early, because your fee never changes. Borrowers reported fees ranging from 12% to 14%, making LoanBuilder a somewhat expensive financing option. LoanBuilder’s website, though, showed example loans with fees ranging from 2.8% to 7%. We’re not sure if those rates are possible to get―but even if they are, they’re clearly not common.
Whatever your loan size and fee rate, you’ll repay it with automated weekly payments from your business bank account. As far as we can tell, you can get a loan term of up to one year―though terms as short as 15 weeks may be possible.
Those aren’t the worst rates and terms we’ve seen for financing, but they’re far from the best we’ve seen. That’s why, as we said above, we recommend going with another lender if you have the revenue to do so.
But if you do decide to stick with LoanBuilder, you’ll at least have the option to tweak your loan a little.