SnapCap Review 2022

Updated on December 18, 2020
Advertiser Disclosure

Overview

SnapCap is an online lender that offers a wide variety of working capital loans for small businesses up to $1 million. In 2017, SnapCap was acquired by LendingTree—an online marketplace for consumer loans—and is now SnapCap by LendingTree; however, the lending portion of the business appears to have remained unchanged. 

If you’re looking for a small business loan, SnapCap by LendingTree can offer a simple and fast application process. While their site mentions a variety of funding options, from business loans and working capital to expansion, equipment, and inventory financing, they offer just one set of criteria. When you apply through funding through this lender, they will match you with the best solution for your business based on your needs and credentials.  Let’s learn more about this alternative lender.

SnapCap Business Loan Details

Green checkmarkPros
  • Simple application
  • Fast funding
  • Low credit requirement
  • No collateral
Red X markCons
  • Daily or weekly repayment
  • Miscellaneous fees could apply
  • Lack of transparency around rates
  • Loan Amount

    $10,000 - $1 million

  • Loan Term

    3 months - 3 years

  • Factor Rate

    1.05 - 1.4

Qualifications

  • Annual Revenue

    $100,000

  • Personal Credit Score

    500

  • Time in Business

    1 year

SnapCap Borrower Eligibility

While SnapCap lists one year in business on their site, they also mention just six months in business on their FAQ page, so if your business has less than a year of business history, it’s still worth applying with this lender.

 

To be eligible for funding through SnapCap, your business must be based in the U.S and have an active bank account with a monthly balance of at least $1,000 and at least five unique deposits per month. 

SnapCap doesn’t work with every industry. Excluded industries include:

  • Flea markets
  • Precious metal sales
  • Mobile home dealers
  • Contracted management services
  • Payroll companies
  • Call centers
  • Notaries
  • Brokerage
  • Travel agencies
  • Adult entertainment
  • Drug paraphernalia and dispensaries

Depending on the state in which you operate, you may not be eligible for SnapCap’s business loan products, but will instead only have access to their merchant cash advance product.

What You Need to Apply

  • Active bank account
  • Three months of bank statements
  • EIN
  • Processing statements (if applicable)

How to Get a Loan With SnapCap

With this information in mind, let’s take a closer look at the funding process with SnapCap by LendingTree.

Application and Underwriting Process

The first step of applying for a SnapCap loan will be filling out the first part of their prequalification online application. For this step, you’ll simply have to self-report your business’s age, your annual revenue, and your personal credit score. Next, you’ll provide SnapCap with your ideal funding setup—you’ll tell them your requested amount and repayment term.

After that, you’ll need to provide more details on yourself and your business, including your business address, your home address, your industry, your date of birth, and how many employees your business has.

After you provide these details, SnapCap reviews your self-reported credentials and will let you know whether or not you pre-qualify within a matter of hours. If you decide to move forward in the process, you will need to provide documentation and a credit authorization so that SnapCap can confirm your credentials. They’ll consult your three most recent business bank statements to confirm your business’s cash flow and perform a soft credit pull to confirm your personal credit score.

Once SnapCap verifies your credentials, presents you with an offer, and you accept that offer, you can see the funds in your bank account in as little as 24 hours. Altogether, SnapCap loans typically take at least two business days to fully fund.

Post-Funding Process

SnapCap loans will either come with a daily or weekly payment schedule—which schedule you access will depend on the product you fund with. According to their website, the rate and pricing of your loan is determined by a number of factors including recent business performance, industry, dollar amount financed, and term. 

SnapCap interest rates most often come in the form of a factor rate, which is a decimal that expresses the total amount that you’ll repay. SnapCap interest rates typically fall within the range of 1.05 and 1.4, which is a pretty wide range.

Let’s say you take on a $100,000 SnapCap loan with a 1.05 factor rate. In total, you’ll just be paying back $105,000, which is just $5,000 of interest. However, if you have a $100,000 SnapCap loan with a factor rate of 1.4, you’ll be repaying $140,000 total, which is $40,000 of interest.

Altogether, SnapCap interest rates are a seriously mixed bag, so if you’re a less-qualified borrower, be aware that your interest rate on a SnapCap loan could be a lot more expensive than it would be for a more qualified borrower.

Depending on the product that you select, you may be charged an origination fee. According to SnapCap, these fees are always itemized in the funding documents for review, but be sure to read through your loan agreement carefully before signing so you understand the true cost of capital

Once you take on a SnapCap loan, a fixed payment amount is deducted from your business bank account on a daily or weekly basis. You may be allowed to prepay after a period of on-time repayment; however, SnapCap doesn’t get more specific about what this process looks like.

SnapCap Customer Service

SnapCap by LendingTree is located in Charleston, South Carolina, and can be reached via phone or by emailing info@snapcap.com. Their reps are available between 9 a.m. and 7 p.m. Monday through Friday.

SnapCap Customer Reviews

SnapCap by LendingTree is not accredited by the Better Business Bureau, but they are reviewed across several other platforms. Among positive SnapCap customer reviews, highlights include the simple application process, fast funding timeline, and helpful sales associates. Overall, many customers praise the ease with which they were able to get the funding they needed. 

On the flip side, some lowlights from negative customer reviews include how expensive these loans can be. Even some positive reviews acknowledge this as the price to pay for receiving funding so quickly, especially if your business doesn’t have a great financial history.

Other negative reviews question how fast SnapCap’s funding really is, saying they were promised funding by a certain date only to have that date later pushed back. For businesses in need of capital for an emergency or business opportunity that can’t wait, this could be a serious issue. As always, compare your loan options so you can ensure you find the right solution, for the right price.

Top Alternatives to SnapCap

SnapCap

Fundera Score

3

OnDeck
Headway Capital
Rapid Finance

OnDeck

Headway Capital

Rapid Finance

Fundera Score

5

Fundera Score

4

Fundera Score

3

Products Offered

Term loan; lines of credit

Products Offered

Lines of credit

Products Offered

Merchant cash advances; short term loans

Interest rates

Starting at 29.9%

Interest rates

40% to 80% APR

Interest rates

Factor rates starting at 1.11

Disclosure

Rates based on loans originated in the half-year ending March 31, 2022

Minimum credit score required

560

Minimum credit score required

550

Minimum credit score required

625

OnDeck

OnDeck

Fundera Score

5

Products Offered

Term loan; lines of credit

Interest rates

Starting at 29.9%

Disclosure

Rates based on loans originated in the half-year ending March 31, 2022

Minimum credit score required

625
Headway Capital

Headway Capital

Fundera Score

4

Products Offered

Lines of credit

Interest rates

40% to 80% APR

Minimum credit score required

560
Rapid Finance

Rapid Finance

Fundera Score

3

Products Offered

Merchant cash advances; short term loans

Interest rates

Factor rates starting at 1.11

Minimum credit score required

550

Is SnapCap in Fundera's Network?

SnapCap is not in Fundera’s Lender Network. The Fundera team carefully vets all of the lenders in our network, and have determined that SnapCap either doesn’t have the technology to work with Fundera or does not offer a financing product that competes with the other lenders in its product class. We suggest considering another lender in this product class.

See if you qualify for similar products in Fundera’s Lender Network.

Christine Aebischer
Editor at Fundera

Christine Aebischer

Christine Aebischer is an editor at Fundera.

Prior to Fundera, Christine was an editor at the financial planning startup LearnVest and its parent company, Northwestern Mutual. There she wrote and edited on topics such as debt, budgeting, insurance, taxes, investing, and retirement. She has written for print and online on topics ranging from personal finance to luxury real estate.

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