SnapCap Small Business Loan Review: Fast Loans from an Alternative Lender

SnapCap Small Business Loan Review: Fast Loans from an Alternative Lender

SnapCap is best suited for business owners with credit scores of 550 and up who may take out multiple loans in the future. SnapCap provides business loans up to $600,000 and the term of the loan can range from 3 to 24 months, depending on the quality of the borrower’s file.

Good for

  • Businesses with FICO scores of 550+
  • Businesses that need funds within 24-48 hours
  • Repeat borrowers

Bad for

  • Businesses in restricted industries (financial services, pawn shops, etc.)
  • Businesses that want monthly repayment schedules

Editor's Rating

3.5/5.0

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SnapCap is an online lender that provides small business loans for working capital, inventory purchases, business expansion and equipment purchases. Traditional lenders have strict requirements to be eligible for their business term loans, which can make qualifying for small business funding difficult. If you have not been able to get loans from a traditional lender, you may want to consider a short term business loan from SnapCap since they have more flexible eligibility requirements.

SnapCap Review: Should You Apply?

SnapCap is ideal for business owners with credit scores of 550 and up who may take out multiple loans in the future. SnapCap provides business loans up to $600,000 and the term of the loan can range from 3 to 24 months, depending on the quality of the borrower’s file. APRs typically vary between 19.99% and 49.99%, though those with lower credit scores may have even higher rates. The lender evaluates your business’ performance rather than two years of tax returns and personal financial statements when making an approval decision.

Good for...Bad for...
  • Businesses with FICO scores of 550+
  • Businesses that need funds within 24-48 hours
  • Repeat borrowers
  • Businesses in restricted industries (financial services, pawn shops, etc.)
  • Businesses that want monthly repayment schedules

To qualify for a loan from SnapCap, your business must be at least 9 months old, have an average monthly bank balance of $1,000 with a minimum of five deposits per month and have a gross annual revenue of $100,000. The borrower must have a credit score of 550 or more, though borrowers with lower credit scores may still qualify if they meet the other requirements. SnapCap does not require collateral, but it will file a blanket lien on business assets. This means that if your business cannot pay back the loan, the lender reserves the right to take possession of your business assets to satisfy the debt.

If you are looking to improve your credit score or take out multiple loans, SnapCap is a good option. With a loan from this lender, you can build your business credit history since it reports to major credit bureaus. When you demonstrate that you can make timely payments, you may qualify for SnapCap’s Vanishing Interest Rate program the next time you borrow a SnapCap loan, which will lower the overall cost of the loan.

You can get funds within 24-48 hours after you are approved for a loan, and APRs range between 19.99% and 49.99%, which is comparable to rates offered by other online lenders (though this still may be higher than APRs offered by a bank or credit union).

SnapCap requires fixed daily or weekly repayment (depending on the quality of the borrower’s file). The good news is that if you pay your loan early, there are no penalties. Instead, SnapCap will give you a 25% discount on any interest remaining on the loan. SnapCap does not lend to businesses in certain industries, including financial services, dealerships, travel agencies, pawn shops and nonprofits.

SnapCap Business Loan Features

SnapCap has fewer requirements than other lenders, requiring a minimum credit score of 550 and only 9 months in business. However, the lender prefers borrowers with a business that is at least 1 year old and has an average monthly bank balance of $2,000 with an annual revenue of $200,000.

How Do I Qualify for a SnapCap Business Loan?
  • Minimum personal credit score: 550
  • Minimum revenue: $10,000 monthly or $100,000 annually
  • Minimum time in business: 9 months
  • Average monthly bank account balance of at least $1,000
  • At least 5 unique deposits per month
Loan Amount Range$5,000 - $600,000
APR Range19.99% - 49.99%
Fees
  • Origination fee: 2.5%
  • Late payment fee: Varies
  • Non-sufficient funds fee: Varies
Loan Terms3 - 36 months
Repayment OptionsDaily or weekly

SnapCap Application Process

You have to fill out a three-step pre-approval form online that will ask about your business’s age, annual revenue and credit quality. You will also need to provide business and personal information such as the address of your home and business, your business’s industry type, the number of employees and your date of birth. After you are pre-approved, SnapCap will ask for more information to help with the approval and application process. You will need to provide the past four months of business bank statements and more business details. Once you are approved, you can receive funds in as quickly as 24-48 hours.

SnapCap Application Process
SnapCap Application Process

How Does SnapCap Compare to Other Online Lenders?

When deciding how to finance your small business, it’s always a good idea to analyze the competition before making a decision.

SnapCap vs. Kabbage

If you are unable to meet SnapCap’s requirements, Kabbage may be a good choice. Kabbage offers lines of credit for six- or twelve-month terms up to $150,000 (with APRs from 20% to 80%). You won’t be able to save a significant amount on interest if you prepay your outstanding balance since the initial payments on your Kabbage line of credit are higher than the remaining ones. However, Kabbage has more lenient requirements than SnapCap, only requiring $50,0000 in annual revenue, one year in business and no minimum credit score to qualify for up to $100,000. If you want more, you'll need to meet stricter requirements: three years in business with $500,000 in annual revenue.

SnapCap vs. LendingClub

LendingClub is a better option if you want the flexibility of a line of credit. LendingClub offers business loans and lines of credit up to $300,000 for terms up to five years with APRs from 7.77% to 35.11%. To qualify for either product, your business needs to be at least 2 years old with an annual revenue of $75,000 and a minimum preferred owner credit score of 620. Borrowers have to own at least 20% of the business and personally guarantee the loan or line of credit.

SnapCap vs. OnDeck

If you want a line of credit or can qualify for lower APRs, then OnDeck is a better choice. OnDeck offers two products for its customers: business loans up to $500,000 with single-digit starting APRs and lines of credit up to $100,000 with APRs between 13.99% and 39.90%. To qualify, your business needs to be at least one year old with $100,000 in annual revenue. You will alson need a personal credit score of 500 or above. Like SnapCap, OnDeck requires daily or weekly repayment.

Comments and Questions

Advertiser Disclosure

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers, see our disclosure page.