SnapCap began in 2012 during the United States’ financial crisis. Their main objective as a loan provider is to evaluate the overall success of a business rather than to fixate on an individual’s credit score, which is how a lot of banking institutions evaluate eligible loan borrowers. This intention has led SnapCap to be able to lend large amounts of money to businesses all over the country. In this last year, SnapCap lent $115 million in business loans.
The typical borrower takes out a loan anywhere from $10k to $100k for 3 to 12 months. Many borrowers use the funds to expand their business.
Companies can choose to use the loan for things such as payroll, marketing, equipment, expansion, and many other things.
There are no requirements for how old a business must be to qualify – even new businesses may be approved. A credit score is also not a factor when applying. There might be minimum revenue requirements for you to be approved, but these are not displayed online.
In general, this loan is good for…
- Businesses with no collateral
- Businesses seeking short-term loans
If your business is looking for a better loan option, check out Kabbage.
With SnapCap, businesses can obtain the financing they need to launch new products or services. The SnapCap platform enables businesses to get the capital they need, even when banks turn them down. Those that use SnapCap as their business loan provider can expect the following from the service:
Excellent Interest Rates
SnapCap offers some of the best interest rates in the industry. According to the company’s loan calculator, if you borrow $100,000, for instance, you will pay $0.19-$0.25 on the dollar—depending on their credit score.
Online Loan Calculator
The loan calculator that SnapCap offers also gives prospective borrowers the option to adjust your credit score, repayment term, and loan amount. This calculator is incredibly useful for prospective borrowers who are deciding who they would like to borrow from and planning out their estimated monthly budgets.
No Required Time in Business
In contrast to other loans, SnapCap loans do not have an allotted amount of time that companies need to be in business before applying. Even startups can apply.
While many banks can take weeks to disburse funding, SnapCap offers a turnaround of 48 hours. This short time frame gives businesses the opportunity to receive and implement funds quickly.
Despite offering a helpful service to small businesses who otherwise would not be able to obtain a loan, there are some concerns that need to be pointed out. Prospective borrowers should consider the following items prior to obtaining a loan through SnapCap:
Unknown Loan Specifics
The website provides very little specific information about the loans that are available, even after you’ve dug around for a little while. This lack of online information is a major drawback, and will deter many borrowers from applying.
Prospective borrowers should be aware of the information that the SnapCap site is missing so that they can know to ask these questions if they apply for a loan from SnapCap or if they pursue a conversation with the SnapCap team. We do not know if they have prepayment penalties, what the minimum revenue requirement is, or what fees they have.
SnapCap has only been around since 2012 – less than 5 years.
Types of Loans Offered
19% – 25%
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The Borrowing Process
SnapCap uses a quick online application to ask general questions about the business. The company generally reviews the applications and makes a decision within a few hours.
How to Apply
To apply online, you’ll need to answer the how long your business has been in operation, your annual revenue, and your approximate credit score. Then you will fill out some basic personal information like name of business, first name, last name, and email address. Finally, Snapcap will proceed to ask for further information about the business and the owner.