SkyCap Funding business loans review | finder.com

SkyCap Funding small business loans review

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With a quick application, you could borrow up to $500,000 in a matter of days.

SkyCap Funding offers loans in a wide range of amounts to cover a variety of business needs. After filling out a quick application, you might be able to get the funds you need in a few days. However, not everything about this lender is clear. With limited information on its website and practically no former borrower reviews, you may be going in blind if you decide to apply.
Product NameSkyCap Funding small business loan
Min Loan Amount$2,500
Max. Loan Amount$500,000
Interest Rate TypeVariable
RequirementsMust be in business for at least six months, have $6,000 in monthly revenue and no current bankruptcies
  • Business bank statements.
  • Credit card processing statements, if applicable.

First, does my business qualify?

To be eligible for financing through SkyCap Funding, your business must:

  • Be at least six months old.
  • Make at least $6,000 in monthly revenue.

What is SkyCap Funding?

Founded in 2007, SkyCap Funding offers working capital loans between $2,500 and $500,000 for small business owners in the US and Canada. They work more like a merchant cash advance, than your traditional business term loan. Terms vary based on your business and revenue, but businesses typically qualify for 80% to 90% of their monthly revenue for the past three months.

SkyCap charges a 3% to 6% fee that covers underwriting, ACH transfers and processing if you accept your loan offer. It also doesn’t charge interest, but instead gives businesses a fixed fee that it adds to the loan balance.

Borrowers are required to make daily repayments Monday through Friday based on the amount it thinks your business will earn during the life of the loan.

What makes SkyCap Funding unique?

Depending on your creditworthiness, first-time borrowers might not qualify for the best terms or the highest loan amounts. However, SkyCap makes it easy to get access to lower rates over time. As soon as you’ve paid off 50% of your first loan, you become eligible to renew your loan.

What does this mean for you? When you renew, you’re treated as an existing customer. You can potentially increase your loan amount, get a longer term or lower your interest rate. If you need different terms but weren’t initially eligible for them, a loan renewal could give you access to a loan that better suits your business.

What are the benefits of a business loan from SkyCap Funding?

  • Quick preapproval. Before you fill out the full application, you can enter some basic information to see if your business is eligible.
  • Credit plays a small role. Your personal and business credit scores aren’t the only factor SkyCap considers.
  • Minimal paperwork. Unlike a traditional loan from a bank, SkyCap Funding doesn’t require large amounts of paperwork to fund your loan. Simply submit your business’s bank and credit card statements, and you’re ready to go.

What to watch out for

  • Limited information available. SkyCap Funding’s website doesn’t include vital information like credit requirements and potential fees. This means you’ll have to call customer service to learn more.
  • No online reviews. If you’re looking for what former customers have to say about borrowing with SkyCap Funding, you won’t find much. It doesn’t have a page with the Better Business Bureau (BBB) or Trustpilot.
  • Not always directly funded. SkyCap Funding funds some of its loans directly, but it might send you to a partner lender if you don’t meet its underwriting standards.
  • Not great for seasonal businesses. Businesses that don’t have regular cash flow could struggle to make SkyCap’s daily repayments.

Compare more business loan providers

Rates last updated September 24th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$500
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.

Compare up to 4 providers

What does the Internet say about SkyCap Funding?

There isn’t much information to be found about SkyCap Funding online as of September 2018. It doesn’t have a page on the BBB or Trustpilot. We also couldn’t find any mentions on other online forums. No reviews isn’t necessarily a bad thing, but it does make it more difficult to predict how your loan experience will go.

If you’d like to browse other lenders that have more of an online presence, you can view your options in the table above.

How do I apply?

SkyCap Funding prides itself on a simple application, allowing its potential borrowers to apply online or by fax. Follow these steps to apply:

  1. Go to the SkyCap Funding website and click Go.
  2. Fill out the preapproval application by providing basic information about your business. If your business is eligible for preapproval, save your quote tracking number and continue to the full application.
  3. Complete the application with more information about your business, yourself and your property.
  4. Sign the document electronically or print out the application to sign and fax a physical form.
  5. Once your application has been signed, submit four to six months of bank and credit card processing statements.

After receiving your application, SkyCap Funding typically responds within 24 hours. If it’s able to provide financing and you agree to the terms, it’ll deposit the funds into your account within two to three business days.

How to apply step-by-step with screenshots

What documents will I need to apply?

SkyCap Funding requires minimal documentation to process your application, including:

  • Business bank statements.
  • Credit card processing statements, if applicable.

I got the business loan. Now what?

SkyCap Funding requires fixed repayments based on your estimated receivables that are taken directly from your account each day. Since it withdraws your repayments automatically, you don’t need to worry about manually transferring money to SkyCap each day. However, you should still keep an eye on your account and loan balance. If you notice something off, reach out to customer service by calling 888-250-5227.

Bottom line

With a simple application and large potential loan amounts for repeat customers, SkyCap Funding may be worth looking into if you anticipate needing several business loans over the coming years. However, the limited information on its website and its lack of customer reviews make it difficult to know exactly what you’re getting into.

As with all big financial decisions, compare your other business loan options before signing on the dotted line.

Frequently asked questions

Image source: Shutterstock and skycapfunding.com

Kellye Guinan

Kellye Guinan is a writer and editor with finder.com and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.

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