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SnapCap Review: Pros, Cons, & How To Apply

SnapCap is an alternative online lender offering short-term financing to small business owners. They specialize in expediting the business loan process. From their streamlined application process to fast funding time, the company aims to bring you working capital in a snap.

SnapCap logo

However, the company isn’t right for every business. The quick funding time carries with it high rates and fees. It’s also challenging to assess the exact cost of financing because the company doesn’t publish rates and fees.

If you’re a small business owner considering a SnapCap business loan, we can help guide you with answers to these questions:

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    What is SnapCap?

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    SnapCap is an alternative lender offering short-term funding for small businesses. The company launched in 2012 and has secured nearly $1 billion in small business financing since then. Lending Tree acquired the company’s non-lending assets in 2017.

    The company’s website states its focus is on helping companies get the business capital needed to succeed. The approval process focuses more on a company’s revenue, cash flow, and customer base than traditional lending metrics like a credit score.

    SnapCap’s main advantage is gaining access to working capital loans quickly. Approved applicants can receive funds in 1-3 business days. Let’s examine the process and loan options to see what makes the company unique.

    How Do SnapCap Loans Work?

    money, finance, mortgage

    The company uses proprietary technology to assess and approve applications quickly. The quick, streamlined process makes applying simple, and most users get a determination the same day they apply.

    With the fast application and approval also comes fast funding. It can usually disburse loan funds in 1-2 business days after applying and getting approved.

    While the company offers multiple loan products, users apply through the same process and indicate their desired loan amount and terms. SnapCap then finds the loan product that most closely fits the user’s request.

    Most loans use a factor rate rather than a traditional interest rate or APR, but it depends on the product. SnapCap’s website doesn’t publish fee ranges, but most estimates put the factor rate anywhere from 1.04 to 1.5.

    With a factor rate, you pay a fixed percentage of the loan amount as the fee for lending. Multiply the loan amount by the factor rate to see how much you’ll pay. For example, if you borrow $50,000 with a factor rate of 1.05, the formula is $50,000 x 1.05 = $52,500. You’ll pay $2,500 to borrow $50,000.

    Small Business Loans

    SnapCap primarily offers short and medium-term unsecured business loans. An unsecured loan doesn’t carry any collateral, but business owners might need to sign a personal guarantee. Loan amounts range from $10,000 to $1,000,000, with 3 to 36 months terms.

    The company’s financing solutions include:

    Other SnapCap loan options include equipment financing and merchant cash advances.

    Equipment Loans

    excavator, heavy equipment, construction

    The company also offers some equipment financing options, but SnapCap’s website doesn’t provide much detail on equipment loans. The borrowing amounts and repayment terms are the same as their unsecured loans.

    Merchant Cash Advances

    In some states where the company can’t offer its unsecured loans, it provides Merchant Cash Advances. The website doesn’t list borrowing amounts, fees, or repayment terms.

    What are SnapCap’s Qualifications?

    finance, bank, banking

    SnapCap approval requirements are lower than many lenders. The company publishes both the minimum and average qualifications for borrowers.

    Personal Credit Score

    Applicants need a minimum personal credit score of 500 to apply. Most businesses require a much higher score making it an excellent option for bad credit borrowers.

    The average SnapCap borrower’s personal credit score is 650. The website only mentions personal credit scores and doesn’t have a business credit score requirement.

    Annual Revenue & Bank Statements

    SnapCap’s underwriters evaluate your whole business when deciding on your loan request. They look at your revenue and cash flow to determine what you can afford and what loan product works best.

    When you apply, you need to provide bank statements to show your cash flow and daily deposits. You need a minimum annual revenue of $100,000 to qualify, but the average is $300,000.

    Time in Business

    SnapCap’s minimum requirement for time in business is one year, but they state the average is 5 years. Time in business might affect your perceived creditworthiness and reliability.

    For SnapCap, You Should Know That:

    office, taking notes, business

    The company doesn’t publish fees. We know that they typically charge a flat rate rather than an APR interest rate, and the rate depends on factors like your income, credit score, and the strength of your business.

    Most estimates, taken from other online reviews and customer testimonials, put the factor rate anywhere from 1.05 to 1.50. However, you won’t know for sure until you apply and get a quote.

    Another thing we can say is that their rates seem to be competitive for the type of lending products they offer. Most short-term financing with a fast disbursement carries higher fees.

    We also don’t know if SnapCap charges an origination fee or if there are prepayment fees. The lack of transparency on fees makes it difficult to do comparative price shopping or tell you the true cost of financing with SnapCap.

    The company only offers daily or weekly repayments. With potentially high rates and short repayment terms, daily or weekly repayments might be challenging to manage.

    How to Apply for a SnapCap Loan:

    SnapCap’s application process is simple and straightforward. One of the company’s main advantages is how quickly you can apply, get approved, and get funded.

    Step 1: Apply Online

    You’ll start by self-identifying information about your business and how much you want to borrow. Applicants must provide their business’s name, address, and annual revenue.

    You must also provide your name, home address, and credit score. After you provide the required information, SnapCap lets you know if you prequalify within a few hours.

    Step 2: Provide Documentation

    Once you prequalify, the next step is to provide bank statements from the previous three months. If the company needs any additional information, they will let you know. You will authorize it to do a soft credit pull to verify your information.

    Step 3: Get Funded

    SnapCap presents you with an offer letter once you qualify. You can accept the offer and repayment terms. If everything goes well, you can receive your funds within 48 hours of applying.

    SnapCap, Post-Funding:

    approved, finance, business, post-funding, post-approval, business funding

    Repayment begins shortly after you receive your funds. SnapCap sets up automatic payments to deduct from the business bank account where you received your funds.

    The repayment schedule is either weekly or daily with an ACH transfer. Your rate and any fees, such as an origination fee, depend on your industry, recent business performance, how much you borrowed, and the terms of your loan.

    SnapCap’s website indicates it might be possible to prepay the loan once a borrower makes a certain number of on-time payments. However, it doesn’t provide details on how the process works or how much you could save with a prepayment discount.

    What are the Advantages of SnapCap?

    The most significant benefit of using SnapCap is the quick turnaround for getting funds. While the rates are high, it is a viable option for small businesses needing urgent funding.

    The application process also makes it quick and easy to acquire funding. The initial prequalification process only takes a few minutes, and approval usually happens within 24 hours.

    SnapCap is also a good option for bad credit borrowers. With a minimum personal credit score requirement of 500, SnapCap helps borrowers most lenders can’t.

    SnapCap has mostly positive reviews and provides excellent customer service. Most customer reviews say how helpful and accommodating their customer service representative was.

    What are the Disadvantages of SnapCap?

    The converse of the fast funding process is high fees. While SnapCap doesn’t publish its fees or rates, you can typically expect to pay more for quickly funded short-term loans.

    Speaking of not publishing rates and fees, another disadvantage of SnapCap is that the lack of transparency makes it difficult to compare them to other lenders. If you’re looking to shop lenders for the best rates, you might need to apply and get a quote from SnapCap, which is time-consuming.

    SnapCap doesn’t provide financing to startups or companies younger than one year. In addition, some states restrict which SnapCap products are available. Be sure to check what products are available in your state.

    The company also prohibits specific industries. While most industries are accepted, SnapCap won’t provide financing to:

    • Adult entertainment.
    • Drug dispensaries.
    • Flea markets.
    • Precious metal sellers.
    • Mobile home dealers.
    • Payroll companies.
    • Call centers.
    • Notaries.
    • Travel agents.
    • Contracted management services.
    • Brokerage firms or companies.

    We prepared a pro and con list for a quick summary.

    SnapCap Pros & Cons:

    pros, and, cons, green thumb up, red thumb down


    • The application process is quick and easy.
    • Offers fast funding, usually in 1-3 business days.
    • Accepts bad credit, as low as 500.
    • Excellent customer service and online reviews.
    • Doesn’t require collateral.
    • High borrowing amounts, up to $1 million.


    • Potentially high rates and fees.
    • Not transparent about rates and fees.
    • Can’t comparison shop with other lenders.
    • Only offers daily or weekly repayment schedules.
    • Limitations by state and industry.

    Apply for business funding through United Capital Source today.

    SnapCap Frequently Asked Questions

    Is SnapCap Legit?

    Yes, SnapCap is a legitimate online alternative lender. The company is not accredited by the Better Business Bureau but does have a 4.9 out of 5 rating on 608 reviews on TrustPilot. In addition, the SnapCap has a 4.4 user review on Best Company.

    What Do SnapCap Reviews Typically Focus On?

    peer review icon, peer review, review

    Positive reviews talk about the ease of the application process and SnapCap’s excellent customer service. Many users say how helpful the customer service team was in assisting them through the process.

    Most users like how quickly their loans got funded. Other reviews talked about getting approved despite having a low credit score. Many users liked how much less paperwork is involved with SnapCap versus a traditional bank loan.

    Negative reviews talk about the high rates, although even then, users recognize the rates are a trade-off for the quick turnaround on funding. Even so, some users stated the company didn’t fully explain its rates and repayment terms.

    Other users complained that the funding process was not as fast as they thought. Some were hoping for funding in 24 hours when the reality was closer to 2-3 business days.

    While most users praised the customer service, some said they had trouble getting a response after applying. The company does have limited availability outside of business hours.

    What if SnapCap Denies Me?

    SnapCap offers some of the lowest qualification requirements among online lenders, but that doesn’t guarantee you’ll get approved. There are several reasons why SnapCap might deny a loan request.

    First, you must meet their minimum requirements of a 500 credit score, $100,000 in annual revenue, and at least one year in business. Beyond that, their proprietary software analyzes the whole of your business. If there are issues with cash flow or other reasons to indicate you can’t afford the loan, SnapCap will deny the request.

    Additionally, there are some limitations by state and industry. Make sure your state allows SnapCap lending and your business is approved.

    Fortunately, the company only does a soft credit pull. Applying shouldn’t affect your credit score.

    If you applied and received a denial letter from SnapCap, the letter should explain why it denied the application. If not, or if you need more information, you can call SnapCap to discuss why it was rejected.

    Don’t worry. There are plenty of other lending options. You can look at our bad credit business loan guide if you specifically need a loan that accepts bad credit. Additionally, you find other lenders that offer small business loans to find one that will work for your business.

    Making Your Decision

    board, arrows, decision

    SnapCap is best for established small business owners needing fast funding who might not have the credit score to qualify for other lenders. Businesses with a high credit score that don’t need financing within a few business days can likely find better rates and fees.

    New businesses and startups won’t qualify for the company’s business loans and need to look for other lending options. Also, businesses in certain states or industries that aren’t eligible for SnapCap business loans will need to shop elsewhere.

    SnapCap is fast, but not the fastest, and expensive, but not the most expensive. It’s a good option for lower credit borrowers but expect to pay more if you have a bad credit score. Based on user reviews, loan products, the application process, and funding time, we rate SnapCap at 3.2 out of 5.

    Disclaimer: The SnapCap trademark is owned by LendingTree, LLC and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from LendingTree, LLC.

    Apply for business funding through United Capital Source today.

    Why Choose United Capital Source?

    Why businesses choose UCS:

    Quick funding options that won’t affect credit
    Access to 75+ lenders with multiple products to choose from
    Financing up to $5 million in as few as 3 days
    1500+ 5 star reviews from happy clients!

    Ready to grow your business? See how much you qualify for:

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        How much Working Capital would you like for your business?

        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
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