Snap Advances Review

Lender Overview

Loan types
Merchant cash advances (MCAs)
Loan amount
$250,000 maximum; $5,000 minimum
Interest rates
1.21 to 1.46
Origination fees
2% origination fee; no document or application fees
Loan term
Fixed rate, self-amortizing loans with terms of between 4 months and 18 months
Funding time
Within 3 to 5 business days of approval
Customer services
Contact by phone or email, Monday through Friday during regular business hours
Pros
  • Fast approval and funding - same day approval, and funding within three to five days of approval.
  • Loan amounts to $250,000 (industry average is about $150,000).
  • No collateral is required, other than future cash flow.
  • Most industries accepted as long as they meet Snap Advances credit policy guidelines.
  • Construction companies considered (not accepted with most small business lenders).
  • Snap Advances is a direct lender, not a broker.
  • Poor credit accepted, to a credit score as low as 540.
  • Qualification based primarily on business cash flow, and not on credit profile of business principals.
  • Easy qualification - qualify on as little as three month's recent bank statements.
  • Repayment can be a flat daily amount, or a percentage of credit and debit sales.
  • If your loan request from Snap Advance is declined, there's always the option to resubmit through Zoomli. They may be able to approve what Snap Advance can't accommodate. This will also save you the hassle of having to find a new lender.
Cons
  • Snap Advances has a limited public reputation, and what does exist is on the poor end of the rating scale.
  • Buy rates are higher than the interest rates on more traditional loans.
  • Limited ability to refinance competitor loans, since there is a minimum 50% merchant net requirement.
  • Merchant will be declined for a loan renewal if they layer a competitor loan on top of Snap Advances merchant cash advances.
  • No interest forgiveness on renewals.

About Snap Advances

Snap Advances LLC is an actual direct lender, and not just a loan broker. One of their core values is serving the small business community, a sector that has been virtually abandoned by 96% of the traditional banking industry.

Businesses are funded through merchant cash advances (MCAs). With MCAs, the merchant agrees to sell a portion of their future sales to the lender at a discounted price. The merchant gets funding up front, and the lender automatically collects the money over the next several months, based on a set percentage of credit and debit card sales. The payments are made by automatic draft, taken on a daily basis, to repay the advance.

Snap Advance has an advantage not available to most business lenders. In the event they don't approve a loan, they have an affiliate lender that may be able to make the loan. It avoids the need for a merchant to find a new lender.

The company was founded in 2013, and is based in Valley Stream, New York, but also has an office in West Valley, Utah.

Snap Advances Drill Down

Company Reputation

Snap Advances has the following ratings from third-party business rating services:

  • Better Business Bureau: A+ (on a scale of A+ to F), and has been accredited by BBB since July 15, 2013
  • TrustPilot: 2 stars out of 5 (poor)
  • Yelp: 1 star out of 5; to be fair, this is based on a single negative review
  • Glassdoor (employee reviews): Not rated
  • Customer comments & complaints: RipoffReport - No reports on file.
Licenses and Accreditations

The company is based in New York and Utah. It is registered with the New York Secretary of State, and the Utah Division of Corporations and Commercial Code.

Snap Advances Merchant Cash Advances

Snap Advances merchant cash advances are offered under the following terms:

Loan purpose. Loans must be business related. Merchant must net at least 60% of the loan proceeds, with the balance available for pay off of competitor loan balances.

Industries funded. Most industries are eligible for financing. Preferred industries include retail, restaurants, medical and manufacturing.

Other industries funded include:

  • Auto body and automotive repair shops
  • Beauty salons
  • Bars and alcohol services and sales
  • Supermarkets and grocery stores
  • Convenience stores
  • Dry cleaning and laundry services
  • Furniture and home furnishing businesses
  • Hotels and motels
  • Florists and gift stores
  • Nail salons and day spas
  • Clothing stores

Cautionary Industries. None. Snap Advances will consider any industry that meets their credit policy guidelines.

Buy rates. 1.21 to 1.46 - If you borrow $50,000, and the buy rate is 1.3, you'll be required to repay $65,000 ($50,000 X 1.3). That does not include the origination fee.

Origination and document fees. 2% origination - may be waived for merchants who have strong credit profiles.

Loan term. 4 to 18 months.

Collateral required. None, and no personal guarantee is required either.

Repayment frequency. Daily payments. Repayments are fully automated, and are handled in one of two ways:

  • A daily fixed ACH debited from your bank account
  • Payback is handled through your credit card processor, by creating what's referred to as a split or hold back. Under this arrangement, a set percentage of your daily credit and debit card sales are routed to Snap Advances. The split may require a new credit card processing relationship.

Stacking. Snap Advances must be the first position lender. If merchant stacks loans from other lenders, they will not be eligible for renewal.

Loan Renewal Policy. Snap Advances will consider a renewal as soon as at least 50% of the original loan balance has been paid. On renewals, additional funding can be received in hours, rather than the several days it takes for initial financing.

Interest forgiveness. Not available.

Exceptions. Snap Advances will consider the following exceptions:

  • Waiving the origination fee for merchants who have strong credit profiles.
  • Approving loans for companies engaged in the construction industry.
  • May provide merchant cash advances for merchants in business less than 12 months, but for lower amounts than would be the case for seasoned businesses.

Snap Advances Merchant Cash Advance Borrower Requirements

To qualify for a merchant cash advance through Snap Advances you must meet the following requirements:

  • Be in business for at least one year
  • Have at least 66% ownership in the business
  • Provide at least three month's bank statements
  • Have a minimum personal credit score of 540
  • Must have a minimum of five deposits per day, an average daily balances must be around $1,500 or more.

Snap Advances Merchant Cash Advance Application Process

The Snap Advances merchant cash advance application process can be completed online, or by phone. Same-day approvals are possible, as long as all required documentation is provided immediately. No collateral is required, and you can get funds for any purpose.

In order to make application, you need to provide the following documentation:

  • Completed loan application
  • Personal information of majority owner(s)
  • Most recent three month's of bank statements

No personal guarantee is required for the advance.

No application fee is required, nor does the company charge a document fee. The 2% origination fee will be deducted upon funding.

Who Snap Advances Merchant Cash Advances Work Best For

We've identified seven types of merchants for whom Snap Advances can be a preferred loan source:

  1. Merchants who need money in a hurry. The loan application can be completed in a matter of minutes if you have all your documentation available. Funding will take place within 3 to 5 business days. There's no waiting around for weeks, the way you will with a bank loan.
  2. Merchants looking for easy qualification. To qualify for a merchant cash advance, all you need are your most recent three month's business bank statements. There's no need to submit financial statements or income tax returns.
  3. Young businesses. Snap Advances requires only one year in business to be eligible for a cash advance. The typical small business lender requires at least two years in business. What's more, Snap Advances will consider companies in business less than one year, with strong cash flows, on a case-by-case basis.
  4. Construction companies. This is an industry sector that has difficulty obtaining financing, even in the small business lender space. But Snap Advances will consider providing merchant cash advantages to businesses engaged in construction, as long as they meet their credit and revenue profiles.
  5. Businesses in other industries excluded by lenders. Snap Advances provides advances to merchants engaged in almost any industry. If you have had difficulty getting financing from other lenders, due to the type of business you're engaged in, Snap Advances may be able to help.
  6. Merchants with fair or poor credit. Snap Advances makes advances based on the revenue of your business, and not your personal credit rating.
  7. Merchants who have no collateral available, or none they want to pledge. Snap Advances makes cash advances based on expected future business revenue. No collateral is required, nor is a personal guarantee.

Snap Advance Plan B - Zoomli - Just in Case

Snap Advance's underwriting and credit guidelines are among the most accommodating in the business lending space. But just in case Snap Advance can't accommodate your loan request, there is a Plan B. If Snap Advance can't make a loan offer, the application can be moved to Snap's Zoomli division for a review.

One advantage of the in-house shift, as opposed to going to a brand-new lender, is that Zoomli will only perform a soft credit pull. There's no need to incur a hard inquiry, which may lower your credit score.

There are different scenarios under which Zoomli might be able to make a loan offer when Snap Advance is unable to:

  1. When a merchant is currently double+ funded. Snap will only pay off a single balance. But Zoomli could make a 3rd, or even a 4th position offer, behind Snap.
  2. A merchant who was triple funded at one time in the past. This is an automatic decline for Snap Advance. But Zoomli could make an offer.
  3. A merchant with a business bankruptcy over 3 years old. Snap Advance automatically declines a merchant for any business bankruptcy regardless of when it occurred. Zoomli may be able to make an offer if the bankruptcy was discharged at least three years earlier.
  4. If a merchant has an existing balance that's too high for Snap to pay off. Zoomli could make a second position offer to cover the balance.
  5. If Snap issues a decline for low gross revenue. Snap Advance has a minimum offer of $9,000, but Zoomli's minimium offer is only $5,000. Zoomli can work with a merchant with a lower average gross revenue.
  6. If Snap issues a decline for low average daily balances and/or too many negative balances. Zoomli's requirements are looser, so it's possible they can make an offer.
  7. If a merchant has FICO score below 530. Snap Advance's minimum credit score requirement is a FICO score of 530. Zoomli's minimum requirement is only a 500.

Zoomli Cash Advance Parameters

Zoomli's cash advance requirements are separate from Snap Advance, and look like this:

Maximum loan amount: $50,000

Maximum loan term: 8 months

Zoomli underwriting guidelines are as follows:

  • Merchant must be in business for a minimum of 9 months
  • Merchant must have at least 3 business banking deposits per month
  • ACH offers only - No split deals or lock box deals
  • Must have ownership at 51% or greater
  • Any business bankruptcies need to be over 3 years bold
  • Owner(s) must have legal residency in US
  • Zoomli doesn't fund California merchants

The merchant does not need to make application directly with Zoomli. If the cash advance won't work through Snap Advance, it can be forwarded to Zoomli if the merchant is agreeable. This includes applications where the merchant is open to taking on another loan position without having to pay off the current balance, or where the merchant doesn't meet the Snap Advance minimum credit score requirement. Zoomli may make an offer, if the application meets their guidelines.

Snap Advances Contact Information

  • Snap Advances
  • 497 Rockaway Avenue, Suite 1
  • Valley Stream, New York 11581
  • Phone: (877) 557-7627
  • Office Phone: (516) 247-1909
  • Fax: (877) 898-9321
  • Email: info@snapadvances.com
  • LinkedIn
If you'd like more information, or if you'd like to apply for a loan, check out the Snap Advances website.
Kevin Mercadante
About Kevin Mercadante
Since 2009, Kevin Mercadante has been sharing his journey from a washed-up mortgage loan officer emerging from the Financial Meltdown as a contract/self-employed “slash worker” – accountant/blogger/freelance blog writer – on Out of Your Rut.com. He offers career strategies, from dealing with under-employment to transitioning into self-employment, and provides “Alt-retirement strategies” for the vast majority who won’t retire to the beach as millionaires. He also frequently discusses the big-picture trends that are putting the squeeze on the bottom 90%, offering work-arounds and expense cutting tips to help readers carve out more money to save in their budgets – a.k.a., breaking the “savings barrier” and transitioning from debtor to saver. He’s a regular contributor/staff writer for as many as a dozen financial blogs and websites."