SnapCap Review

Founded in 2012 and subsequently acquired by LendingTree, Snap Capital provides unsecured business loans to companies in various industries.

SnapCap’s unsecured loan products include:

• Working capital loans
• Expansion loans
• Inventory loans
• Equipment loans

SnapCap has relaxed qualifications that put more weight on your revenue than your credit score. The lender’s rates vary depending on recent business performance, industry, loan amount and term length.

Consider SnapCap business loans if you:

• Seek financing from $5,000 to $600,000
• Have been in business at least 6 months
• Generate at least $8,500 in monthly revenue
• Have a personal FICO credit score of 500 or more
• Don’t qualify for less expensive traditional loans
• Need funding quickly

SnapCap working capital loans can be used for:

• Covering cash flow gaps
• Consolidating debt
• Marketing expansion

SnapCap working capital loans feature:

• Amounts of $5,000 to $600,000
• Terms of 3 months to 36 months
• Undisclosed fixed rates (factor rates), calculated as a fixed multiplier or percent of your loan amount
• Origination fees of an undisclosed rate
• Daily or weekly automatic repayment deductions
• Option to prepay after a period of on-time repayment

SnapCap charges fixed rates based on the amount of your loan rather than interest rates that vary with the amount of principal you owe. The website doesn’t disclose the company’s loan rates.

SnapCap provides expansion loans to help build your business. This type of loan product typically serves small business owners who seek to expand through means such as:

• Adding a location
• Hiring more staff
• Introducing a new product line
• Acquiring more customers

SnapCap expansion loans feature:

• Amounts from $5,000 to $600,000
• Terms from 3 to 36 months
• Undisclosed fixed rates (factor rates), calculated as a fixed multiplier or percent of your loan amount
• Origination fees of an undisclosed rate
• Daily or weekly automatic repayment deductions
• Option to prepay after a period of on-time repayment

SnapCap offers inventory loans for companies that manage physical products and need to maintain large inventories. This product meets the needs of businesses who:

• Require extra inventory for seasonal sales
• Stock quantities of short-term inventory for items available for a limited time or in limited amounts

SnapCap inventory loans feature:

• Amounts from $5,000 to $600,000
• Terms from 6 to 18 months
• Undisclosed fixed rates (factor rates), calculated as a fixed multiplier or percent of your loan amount
• Origination fees of an undisclosed rate
• Daily or weekly automatic repayment deductions
• Option to prepay after a period of on-time repayment

SnapCap provides equipment loans for companies that need to:

• Purchase new equipment
• Buy used equipment

SnapCap equipment loans feature:

• Amounts from $5,000 to $600,000
• Terms from 3 to 36 months
• Undisclosed fixed rates (factor rates), calculated as a fixed multiplier or percent of your loan amount
• Origination fees of an undisclosed rate
• Daily or weekly automatic repayment deductions
• Option to prepay after a period of on-time repayment

In addition to its 4 main unsecured loan products, SnapCap offers a number of other financing products, including:

• Secured loans, in which your loan is secured by personal or business collateral
• Invoice factoring, in which you receive working capital in exchange for selling your invoices or accounts receivable at a discount
• Business lines of credit, which work similarly to credit cards
• Merchant cash advances, in which you repay your debt out of a percentage of your future credit-card sales
• Bridge loans, which bridge the gap between long-term loans and anticipated working capital
• Wholesale loans, which are designed to cover large inventory purchases
• Small Business Administration (SBA) loans, which are backed by the federal agency and have stricter requirements than other loan products

The SnapCap application process begins with filling out a preapproval form. The form first requests information to ensure you meet SnapCap’s minimum qualification requirements:

• Time in business
• Annual revenue
• Your personal credit score

You will then be asked to supply:

• Contact details
• Information about your business

SnapCap will then review your application and let you know if you prequalify. If you do, you may need to provide documentation to verify your information, which can include business bank statements to verify income and a driver’s license or building lease to verify your identity. SnapCap may verify your credit score by doing a “soft pull” on your credit, which won’t appear on your credit report and won’t affect your score, according to two third-party reviewers.

After SnapCap confirms your information, the lender will extend you an offer. If you accept, funds normally become available in your bank account within 48 hours. If you supply your employee identification number (EIN), the approval process can be shortened.

When repaying your loan, you can opt to make repayments on a daily or weekly basis. Payments automatically get deducted from your business bank account at a fixed rate. After a period of on-time repayments, you gain the option to pay your loan ahead of time without penalty.

SnapCap offers a number of advantages to lenders:

• Variety of financing products
• Flexible term lengths from 3 to 36 months
• Competitive factor rates, undisclosed on the company’s site but ranging from 1.05 to 1.4 (5% to 40%), according to SnapCap reviews from finance website operators
• Willingness to work with small business owners who have moderate to poor credit scores
• High approval rates
• Easy application process
• Fast approval time
• Paperless application process

SnapCap’s site provides an online tool you can use to compare sample loans with other lenders by entering your credit score, desired loan term, and desired loan amount.

SnapCap drawbacks include:

• Lack of transparency on rates and fees on the company’s website
• Varying origination fees
• Businesses must be based in the U.S.

To qualify for SnapCap loans, you need:

• Time in Business 6+ Months
• Monthly Revenue $8,500+
• FICO Score 500+ (680+ for SBA)
• Collateral & Down Payment Required for SBA Loans

SnapCap Application: What You Need to Apply

To apply for a SnapCap loan, you may need to submit:

• 3 months of business bank statements
• Identifying documents such as a driver’s license or building lease
• Confirmation of ownership of your bank account

Including your EIN can speed up the application process.

SnapCap may be an option for you if you’re generating enough income to repay a loan but you face obstacles obtaining a conventional loan.

If you’ve only been in business for a short time or have a low credit score, SnapCap may be a way to obtain financing. But if you can qualify for a conventional loan, you may be able to find lower rates elsewhere.

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