SnapCap Review: An Okay Lender, But We’ve Seen Better
SnapCap’s not the worst lender out there, but hidden rates and fees keep it from being the best.
Let’s talk about SnapCap.
This online lender focuses on working capital loans. It boasts about high approval rates and low loan rates. Sounds neat, right? Well it would, if we could find information that backs those claims up. As it is, though, we’ve got some reservations about SnapCap.
In this review, we’ll explain more about those reservations―including why we think SnapCap is a good lender but won’t recommend it. We’ll also help you decide if SnapCap is the best lender for your business, or if you should apply elsewhere.
SnapCap looks like a fine alternative lender for many businesses, but we can’t be sure
- Low minimum credit requirement
- Positive customer reviews
- Small and larger loan amounts
- High typical borrower qualifications
- Lack of transparency around rates and fees
- Daily or weekly loan payments
When we review business lenders, we like to say what kinds of small-business owners and businesses they’ll work for. But in the case of SnapCap, we’re not sure it’s best for anyone.
Sure, SnapCap is probably a fine choice for your business financing. But it lacks any real standout features, like the lowest borrower requirements, fastest funding time, or the best customer reviews.
And even if it did have a standout feature, we don’t have all the information we need to recommend SnapCap. It doesn’t publish even starting interest rates or fees (more on this in the next section). In other words, we don’t know how much it costs. That’s kind of a big deal when you’re talking about multi-thousand dollar loans.
So frankly speaking, we’d suggest you take a look at the lenders on our rankings of the best small-business loans instead. They have the standout features SnapCap lacks, and they’re less cagey about costs.
But if you want to know more about SnapCap, we understand. So let’s talk about what it takes to get a SnapCap loan.
Qualifying for a SnapCap loan
SnapCap’s website may be light on a lot of details, but it does list both its minimum borrower requirements and its typical borrower requirements. (We wish more lenders did this.)
|Time in business||1 yr.||5 yrs.|
|Personal credit core||500||650|
As you can see, those two categories don’t quite match up. For example, in theory, SnapCap will accept a bad personal credit score. But in practice, it seems to look for a credit score that falls squarely in the “fair” range.
Even its minimum requirements aren’t that low. Yes, the 500 minimum credit score requirement is pretty low. But other lenders accept younger businesses and lower revenue. (Fundbox, for example, requires a minimum 500 credit score, three months in business, and $50,000 in revenue.)
Put simply, SnapCap won’t work well for young startups. And we suspect it won’t work well if you have bad credit, unless your other qualifications are really solid.
If you do decide to apply, though, you just need to submit some basic information about your business, plus three months of bank statements. SnapCap can then make a same-day decision about your funding, and you can get money within 48 hours.
Don’t worry about getting scammed by SnapCap. It’s been around for several years, and―as we’ll cover below―it has excellent customer reviews.
But what type of financing are you actually applying for with SnapCap?
SnapCap loan options
Some lenders (definitely not all) offer several types of business financing. SnapCap, though, keeps it simple. It primarily offers a basic unsecured business loan, which is flexible enough for most working capital needs.
It also technically offers a merchant cash advance (MCA) in a few states, but as far as we can tell, that’s only in places where it can’t legally offer the unsecured loan. Its website offers no information about these MCAs, so we can’t tell you much about them. We’ll simply say that, as a general rule, we don’t recommend MCAs because they have very high fees and an inflexible repayment schedule.
So let’s talk about that unsecured business loan instead. Unsecured means that you don’t need to offer any specific collateral to get a SnapCap business loan. Note that we say specific collateral. We suspect that a SnapCap term loan requires a personal guarantee (which puts your personal assets at stake) or a UCC lien (a blanket loan on your business assets), but we haven’t been able to confirm that.
|Product||Loan size||Lowest rate (APR)||Repayment terms||Learn more|
|Unsecured business loans||$5,000–$600,000||Unlisted||3–36 mos.||Apply now|
|Merchant cash advance||Unlisted||Unlisted||Unlisted||Apply now|
We also haven’t been able to confirm SnapCap’s interest rates or fees. Its website doesn’t list them. And while we reached out to SnapCap directly, it has yet to get back to us.
In a 2016 interview, SnapCap’s president said that rates started at 6%―a low, competitive interest rate, if acculturate.1 But that was years ago, and other details (like loan sizes) have changed since then. Other sites list SnapCap’s starting rate as a very high 19.99%, though we don’t know where they got that number.
We did see some customer reviews that said SnapCap’s rates are quite high, but that’s obviously a subjective description.
All of which is to say that we can’t tell you what kind of rates or fees SnapCap has. Sorry―we tried. But we can make some educated guesses. And knowing what we know, we suspect SnapCap rates are on the higher side. After all, SnapCap loans have short terms between 3 and 36 months. As a rule, short-term business loans have higher interest rates than long-term loans do.
We don’t know how much they cost, but we do know that SnapCap has a few fees. Its website mentions an origination fee, and customer reviews mention prepayment penalties and wire fees.
Then there’s the fact that SnapCap’s loan product requires either a daily or weekly repayment schedule (via automated withdrawals). That’s a common practice among online lenders that charge higher rates.
Likewise, SnapCap’s fast approval process makes us suspect higher interest rates. Business loans with very low rates (like bank loans or some peer-to-peer business loans) often have longer approval processes. That’s because your (potential) loan has to go through a rigorous underwriting process in order to get that low rate.
Regardless of what the actual rates are, we wish SnapCap would be more up front. You, as a borrower, deserve to know what you’re even applying for.
So sure, SnapCap has a nice range of loan amounts. And its shorter loan terms aren’t ideal, but they’re not the end of the world either. But without knowing the actual rates, we can’t say whether or not SnapCap is a good lender.
Fortunately, you don’t have to rely just on us. You can check out SnapCap reviews from actual borrowers.
SnapCap customer reviews
SnapCap has mostly positive reviews. On Trustpilot, SnapCap has a 4.8 out of 5 (based on over 300 reviews).2
Most of the positive SnapCap reviews follow similar themes. Borrowers like the loan specialists they worked with and praise SnapCap’s customer service. They also like how simple the loan application process is (again, you mostly submit bank statements) and how fast the approval process is.
Then there’s the small number of negative reviews. As we mentioned above, some of these focus on high rates and hidden fees, with borrowers grumbling that SnapCap misled them. Other reviewers complain that their application wasn’t processed quickly. And a handful of customers say that SnapCap basically ghosted them―just went completely silent after extending a loan offer.
As we’ve said above, the lack of information about rates and fees bothers us. But the vast majority of SnapCap customers have good things to say about this online lender.
So while we don’t consider SnapCap one of our favorite lenders, there’s a good chance you’ll have a positive experience with it―at least, if you trust all those SnapCap reviews.
SnapCap is an okay alternative lender, but we don’t think you should rush to apply.
We know that SnapCap has plenty of positive reviews. Borrowers seem happy with its working capital loan. And sure, the application and funding process seem easy enough.
But you, as a business owner, should try to get the best possible loan you can. Since we can’t confirm what SnapCap’s rates and fees are, we can’t tell you that it will be your best financing option. Plus, SnapCap doesn’t have any features that make it stand out from the competition. Other lenders do most things better.
Long story short, if SnapCap really appeals to you, go ahead and apply. Just look out for those costs. But if you’re not sold on SnapCap, we’d urge you to look around for a better, more transparent lender. Because you and your small business deserve the best.
Find a lender with some truly outstanding features (and more transparency) on our rankings of the best small-business loans.
At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.
1. Charleston Regional Business Journal, “SnapCap Reaches $200M Mark in Loans to Businesses Since 2012”
2. Trustpilot, “SnapCap”