SkyCap Funding Logo

SkyCap Funding

star star star star_border star_border

4.8

Overall Score

LAST UPDATED: June 4th, 2020

SkyCap Funding is a lending company that specializes in creating financing solutions for small businesses. Instead of providing traditional, collateral-secured loans, SkyCap Funding bases its financing offers on a business's projected revenue, much like a business cash advance, merchant cash advance, or credit card factoring. Consumers who choose SkyCap should remember that they must have a credit score of 550 or higher.

Top Ranked Companies

thumb_up

The Good

  • Available Capital
  • Variety of Repayment Options
  • Outsourcing Available

Available Capital

Funding ranges from $2,500 to $500,000. All financing options are unsecured, meaning they do not require collateral. SkyCap Funding does not disclose its requirements for loans. A potential client will have to call and discuss this information with a representative.

Variety of Repayment Options

SkyCap has three repayment options, so there really is something for everyone:

  • ACH (Automated Clearing House) that automatically debits your account on a daily basis (Monday–Friday).
  • ACH that automatically debts your account once a week.
  • Daily repayment amounts based on a percentage of your credit card sales. This means that business owners are not locked into a fixed amount if their revenue goes down and gives them more flexibility all around.

Outsourcing Available

SkyCap Funding is a direct lender for its own services and application. However, if it is unable to fund a business itself, it will outsource to one of its partners to try to find a good fit for the applying business. If the applicant is able to secure funding with the partnering company, SkyCap Funding receives a fee of 5 to 10 percent of the loan amount.

thumb_down

The Bad

  • Lack of Transparency
  • Unknown Terms, Interest Rates, and More

Lack of Transparency

SkyCap Funding has a simple application that does not require the same extensive documentation that a bank would ask for. However, applying businesses do not know the requirements before applying (much like working with banks). Startup or struggling businesses will not be likely to find financing solutions until those basic requirements are met.

Unknown Terms, Interest Rates, and More

As with any unsecured financing and especially with what is essentially a business cash advance, the interest rates are going to be higher than with a traditional bank or SBA loan. Of course, this is just a guess because SkyCap Funding does not display interest rates on site. We also couldn't find term lengths, minimum application requirements, or fees. Find Other Business Loans

gavel

The Bottom Line

For a small business looking for quick and easily secured business capital, SkyCap Funding should not be a first choice. While it does offer a simple application that requires only basic information and no secured collateral, the missing information outweighs the positive aspects. SkyCap Funding's claims are enticing but be aware of the lack of information and take the time to research any third-party lenders before accepting financing offers.

View Best Business Loan Lenders

Was this content helpful?
thumb_up Yes thumb_down No

Star Rating

info

2.8

star star star star_border star_border

13 Reviews

Review Breakdown

5 grade

38%

4 grade

8%

3 grade

0%

2 grade

0%

1 grade

54%

Sentiment Criteria

Value

star star star star_half star_border

Quality

star star star star_half star_border

Service

star star star star_half star_border

Trustworthiness

star star star star_half star_border
cancel

Filter by:

arrow_drop_down

Sort by:

arrow_drop_down
info
star star star star star_border

John

Skycap Funding was professional and courteous. They got me the working capital I needed in a timely and efficient manner. They asked for minimal documentation, much less than my bank. It is more expensive than the bank but much much easier and faster. I recommend them highly.

7 years ago