SnapCap business loans review September 2018 | finder.com

SnapCap business loans review

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Give your business a boost with flexible repayments on loans of up to $600,000.

Getting extra capital for your business can be tricky, especially if you’re thinking about applying for a loan with a bank. As an online lender, SnapCap provides financing solutions for your business with a simple online application process and loan decisions typically in 48 hours.
Product NameSnapCap Business Loans
Min Loan Amount$5,000
Max. Loan Amount$600,000
Interest Rate TypeFixed
Minimum Loan Term.25 year
Maximum Loan Term3 years
  • In business 6+ months
  • Monthly revenue of at least $8,500
  • Must be based in the US
  • Personal credit score of 500+
  • An active bank account

First, do I qualify?

To qualify for a SnapCap business loan, your business must be at least six months old, based in the US and generate at least $8,500 in gross monthly revenue. You must also have a personal credit score of 500 or higher.

What is SnapCap?

Founded 2012, SnapCap specializes in providing financing solutions for businesses that include capital loans, inventory loans, expansion loans and equipment loans. Depending on your creditworthiness, you can borrow up to $600,000 with flexible repayment terms. Customers rate SnapCap an excellent 9.5 out of 10 on Trustpilot.

What makes SnapCap business loans unique?

SnapCap focuses on the overall health of a business, rather than merely an owner’s personal credit score. As a result, your business could qualify for a SnapCap loan even if you have less-than-perfect credit. Its Vanishing Interest Rate program is designed to reward its customers who manage repayments responsibly, offering lower rates to repeat borrowers.

Rates are simple interest, not APR. Because rates are fixed, they stay the same over the life of your repayment term. Most loans are offered at an interest rate of 12% to 15%, with the highest rate a borrower could expect at around 35%.

Compare SnapCap to other online business lenders

Rates last updated September 26th, 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

Benefits and drawbacks of SnapCap business loans

Pros

  • Quick turnaround. If you provide all the information required in the application, you could be approved within 48 hours.
  • Varied loan terms. Choose to repay your loan with terms of 3 to 36 months.
  • No collateral. SnapCap loans are unsecured, which means you won’t need to provide collateral.
  • Loans for different purposes. SnapCap offers inventory loans, working capital loans equipment loans and expansion loans.

Cons

  • High rates and fees. SnapCap isn’t up front about the the interest rates you could qualify for. Instead, you learn your interest rate only after your loan is approved. Depending on the loan you get, you may also pay loan origination fees.
  • Daily or weekly repayments. SnapCap deducts a fixed repayment from your business bank account, which can eat into your cash flow.
  • Prepayment. SnapCap allows you to pay your loan off ahead of time only after an unspecified “period of on-time repayment.”
  • Limited services. Business loans aren’t available in all states.

Am I eligible for a SnapCap business loan?

SnapCap isn’t licensed to offer business loans in all US states, though its site doesn’t specifically list the states it services. If you live in a state that doesn’t allow business loans, you could instead qualify for a merchant cash advance.

To qualify:

  • Your business must be based in the US and at least six months old.
  • Your business must generate at least $8,500 in monthly gross revenue.
  • You must provide three months of business bank statements.
  • Your personal credit score must be 500 or higher.

After you submit an application, SnapCap reviews your information to determines whether your business qualifies. In most cases, it provides a loan decision within 48 hours. In some cases, SnapCap may ask for additional documentation before it decides on your loan.

How do I apply?

Applying with SnapCap begins with completing an online preapproval application.

  1. Go to SnapCap’s site and click Apply Now at upper right. SnapCap apply screen one
  2. Indicate how long you’ve been in business, your annual revenue and your personal credit score. Then click Continue. SnapCap apply screen two
  3. Enter your business’s name and personal contact info. Click Continue. Snapcap apply screen three
  4. Enter your business address, the industry you work in and whether your business is based out of your home. Indicate your ownership percentage and date of birth, and then click Continue.SnapCap apply screen fourIf you’re prequalified, you’ll be asked to expedite your application by answering a five-step “express review.” This review requires you to indicate your funding requirements and more detailed personal and business information.

After you submit your review and upload required documentation, a SnapCap loan officer will call you for yet more information.

What documents do I need to apply?

SnapCap requires at least three months of business bank statements, along with personal and business details that can include at its discretion:

  • Your driver’s license and Social Security number.
  • Proof of bank account ownership.
  • Your Employer Identification Number.
  • Your company’s building lease.

I got a SnapCap business loan. Now what?

Now that you’ve got your business loan, there’s not much more to do than make on-time repayments.

  • Set up autopay. Avoid unnecessary fees and interest by scheduling automatic withdrawals from your bank account.
  • Get support. If you have questions about your loan, contact SnapCap weekdays from 9 a.m. to 7 p.m. ET at 800-843-0130 or info@snapcap.com. Or connect with SnapCap on Facebook @snapcap or on Twitter @Snap_Cap.

Bottom line

If you own a startup and need business funding quickly, SnapCap could be an option. It offers short-term business loans of $5,000 to $600,000.

But if you have more time, you may be able to find a better business loan provider by comparing your options.

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