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 $250k 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.
In order to be funded by SnapCap, businesses need to have only been in operation for about six months. Along with that, SnapCap requires a minimum credit score of 500 and a yearly revenue of about $102,000.
In general, this loan is good for…
- Businesses with no collateral
- Businesses seeking short-term loans
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- No required time in business
- Fast funding
- Online tools
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
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. 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.
- Lacking information
- Lack of transparency
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.
Types of Loans Offered
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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.