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SnapCap business loans review

Short-term financing with options for bad credit — but fees may be high.

finder.com’s rating: 3.3 / 5.0

★★★★★

Bottom line: SnapCap’s unsecured business loans are a variable bank loan alternative for businesses that have struggled to qualify for financing. But while it’s not transparent about costs, this type of financing is often highly expensive. Read our full review or get our 30-second take.

Details

Min. Amount$10,000
Max. Amount$1,000,000
Loan Term3 to 18 months
Min. Credit Score500
Requirements1+ year in business, $100,000+ annual revenue, 500+ personal credit score

Pros

  • Bad credit OK
  • Loans as high as $1 million
  • Accepts most industries

Cons

  • Not transparent about pricing
  • Requires at least one year in business
  • Limited service outside business hours

Our take on SnapCap business loans

SnapCap may be a good option for established businesses that need a large amount of financing but struggle to qualify due to a low credit score. It’s a short-term lender that offers unsecured loans that are similar to merchant cash advances. It charges a flat fee instead of interest and requires daily or weekly repayments.

While it accepts credit scores as low as 500, SnapCap requires at least one year in business — longer than the typical six months similar products ask for. It also offers higher amounts of financing than most other short-term loan providers I’ve reviewed.

But while it doesn’t publish a range of fees that it charges, similar lenders tend to charge fees equivalent to an APR over 100%. Because of the potentially high cost and daily repayments, you may want to save SnapCap for when your alternatives are limited.

SnapCap has short terms and doesn’t disclose fees

SnapCap’s unsecured business loans come with terms from 3 to 18 months — typical for this type of loan.

It charges a flat fee instead of interest, which it represents as cents on the dollar. SnapCap doesn’t publish the range of fees available. But most similar products start at around 10 cents on the dollar. In some cases, SnapCap might also charge an origination fee on top of the financing fee.

So say you take out a $10,000 loan — you'll likely get a minimum fee of $1,000. With a three-month term, you’re looking at an APR close to 60%. But these are just estimates. The best way to find out how much a SnapCap loan will cost your business is to prequalify.

SnapCap reviews are positive

BBB accredited No
BBB rating
BBB customer reviews 1 out of 5 stars, based on 1 customer reviews
Trustpilot Score 4.8 out of 5 stars, based on 459 customer reviews
Customer reviews verified as of 03 November 2021

SnapCap gets mostly positive reviews on sites like Trustpilot. Most reviewers comment on the fast turnaround and simple application. Many also say the customer service was excellent. But a few mention the high cost as a drawback — including some reviewers that give it five stars.

Bad credit business owners are eligible — but not startups

To qualify for a SnapCap business loan, you and your business must meet the following criteria:

  • At least one year in business
  • Annual revenue of $100,000 or more
  • Personal credit score of 500

But most SnapCap borrowers have been in business for five years, earn over $300,0000 a year and have a credit score over 650. 

SnapCap says it works with most industries — including some that traditional lenders consider to be high risk.

Get started with a simple online application

SnapCap’s application is entirely online. You can get started by filling out a quick form with basic information about your business and financing needs. Qualified businesses will see a range of loan amounts and terms that they’re eligible for and will receive instructions to complete the application.

Typically you can receive funds within 48 hours after signing your loan agreement.

High loan amounts set SnapCap apart

While most short-term business loans stop at around $500,000, SnapCap offers funding as high as $1,000,000. This opens it up to high-revenue companies that struggle to qualify for financing because of an owner’s low credit score.

But this isn't always a good thing. Taking out a large loan with such a short term can be risky. Shorter loan terms can lead to high monthly payments. A loan for $1 million with an 18-month term would cost $55,556 a month before the fee — which would likely be at least $100,000 for a loan of that size. With daily repayments, that means you’d pay at least $1,826 per day on the principal alone. If you’re looking for a loan of that size, you may want to consider other options.

SnapCap is a legitimate lender

Founded 2012, SnapCap specializes in providing financing solutions for businesses that include capital loans, inventory loans, expansion loans and equipment loans. LendingTree, an online lending marketplace, acquired the company in 2017. This allowed it to reach more customers and provide higher-quality service.

But while SnapCap is legitimate, the type of financing it offers is often expensive. Save this lender for when your options are limited.

SnapCap alternatives

See how SnapCap compares to other providers by filling out the form with information about your small business and yourself. Visit our guide to business loans for more information on how financing works.

Name Product Filter Values Loan amount APR Requirements

Biz2Credit business loans
Finder Rating: 4.7 / 5: ★★★★★

Biz2Credit business loans
$25,000 – $6,000,000
Starting at 5.99%
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.

Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★

Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.

ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★

ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.

OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★

OnDeck short-term loans
$5,000 – $250,000
As low as 35%
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.

Fundbox lines of credit
Finder Rating: 4.2 / 5: ★★★★★

Fundbox lines of credit
$1,000 – $150,000
Not stated
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.
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Business loan ratings

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We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

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