Small business owners frequently encounter roadblocks when seeking funding through traditional financial institutions. From strict credit requirements to lengthy approval processes and countless documents, many small businesses are left without the capital they need to grow or survive. These challenges can prevent small businesses from accessing the financing they deserve, especially when time-sensitive opportunities arise or cash flow is tight.
This is where alternative SMB lenders like FinTap come into play. FinTap aims to provide capital with flexible financing options that bypass many of the hurdles associated with conventional business loans. However, while FinTap may be a helpful solution for some, it’s not the ideal choice for every business. As with most SMB lenders, it’s essential to research thoroughly before committing.
In this review, we’ll explore how FinTap works, including the application process, benefits, and drawbacks, to help you decide if it’s right for your business. Specifically, we’ll answer these questions and more:
FinTap is an online business funder that provides Revenue Based Financing (RBF) solutions to small businesses needing quick access to working capital. Its core mission is to offer flexible financing options that simplify the funding process, removing the red tape associated with many lenders. Rather than relying solely on credit scores, FinTap focuses on a business’s cash flow and sales to provide funds based on projected revenue.
Founded to help underserved businesses, FinTap operates as a direct funder and positions itself as a resource for businesses that may not qualify for traditional loans. The company’s website emphasizes speed, flexibility, and transparency as key pillars of its service.
FinTap’s funding product with a capital advance with the following features:
FinTap provides capital of up to $750,000 while ensuring that repayment terms do not burden businesses. FinTap’s financing model centers around revenue-based financing, in which businesses receive a lump sum of capital in exchange for a percentage of future revenues. This type of funding isn’t a loan in the traditional sense—it’s a purchase of future receivables. The repayment terms are based on daily or weekly remittances drawn from a business’s bank account, and the amount you repay depends on your incoming revenue.
While FinTap doesn’t publish interest rates on its website, many lenders using the RBF model charge a factor rate instead of a traditional APR. A factor rate is a fixed cost multiplied by the original funding amount to determine total repayment. For instance, a factor rate of 1.3 on a $10,000 advance means you’ll repay $13,000, regardless of how quickly you repay it.
FinTap claims to offer fast decisions and funding—sometimes within the same day—but typically, it can take up to two business days. The actual funding amount is based mainly on the business’s monthly revenue, with higher sales enabling access to more capital. FinTap offers transparent repayment terms that are easy to understand.
To qualify for funding from FinTap, small businesses typically need to meet these general criteria:
Unlike many traditional lenders, FinTap doesn’t emphasize credit score as a primary qualification factor, making it accessible to businesses that might otherwise be excluded due to strict credit requirements.
FinTap offers revenue based financing (RBF), which involves the purchase of a portion of your future sales. Rather than charging interest like a conventional loan, RBF typically uses a factor rate, which means you pay a set multiple of the amount borrowed. Factor rates can lead to higher total repayment costs, especially if your revenue accelerates and you repay quickly. FinTap’s quick underwriting process provides approvals faster than most small business lenders.
One crucial factor is that FinTap’s website does not disclose its rates upfront. This lack of transparency makes comparing FinTap with other financing businesses difficult. While FinTap can provide same-day funding, more commonly, the process takes up to two business days from approval to disbursement.
Another point of ambiguity is whether the company performs a hard credit pull or a soft credit inquiry. The difference between the two matters is that a hard credit pull can impact your credit score, while a soft pull cannot. Since FinTap doesn’t clarify this on its site, users should confirm with a representative during the application process.
FinTap also offers a business loan affiliate program. ISOs, business loan brokers, referral partners, and strategic partners can sign up to offer their small business clients the company’s capital advance product.
The application process for FinTap is straightforward and designed to help small businesses access funding with minimal hassle. You can complete the entire process online in just a few steps.
Complete the online form by providing basic details about your business, including its name, industry, time in operation, and estimated monthly revenue.
Enter your contact information and securely link your business bank account or upload recent bank statements so FinTap can assess your eligibility.
If approved, a representative will contact you with funding options. Once you agree to the terms and sign electronically, funds are typically deposited within one to two business days.
After you’ve received funding, FinTap’s repayment process begins almost immediately. Payments are automatically debited from your business account daily or weekly, depending on your agreement. Because repayment is tied to revenue, the amount may fluctuate based on your sales, offering some flexibility compared to fixed loan payments.
The repayment term continues until the total amount owed (original advance + fees determined by the factor rate) is fully paid. Businesses should ensure adequate daily cash flow to avoid overdrafts or disruptions in service.
FinTap offers a fast and relatively simple application process with minimal documentation requirements. It’s an excellent option for small businesses that need quick access to capital but may not meet the strict credit requirements imposed by traditional lenders.
The company’s revenue-based financing structure can provide flexibility, especially for seasonal businesses with fluctuating income. FinTap’s team is generally praised for being professional, responsive, and helpful, which adds to the overall appeal for time-strapped business owners.
A drawback is the lack of transparency around costs, including factor rates and the type of credit inquiry used. Revenue-based financing may become expensive, especially for businesses that repay quickly.
Additionally, some customers have expressed frustration with slow underwriting procedures despite claims of fast funding. The company’s website lacks detailed information, which may leave users uncertain or uninformed, making it challenging to compare FinTap to other financing businesses or SMB lenders.
Pros:
Cons:
Yes, FinTap is a legitimate financing company. It is accredited by the Better Business Bureau (BBB) and holds an A+ rating, indicating that it meets high customer service and complaint resolution standards.
The company also maintains a professional online presence and actively engages with customers through its social media accounts and website. FinTap has a Trustpilot rating of 90.28%. The company’s website has a security certificate.
FinTap has generally favorable customer reviews. On Trustpilot, the company holds a 4.5 out of 5-star rating based on over 70 reviews. This high rating suggests that many customers value its services and are satisfied with the experience.
Positive reviews frequently highlight the ease of accessing funds, the fast approval process, and helpful representatives. Many users commend the FinTap team for taking the time to explain the process and answer questions clearly and kindly. Business owners often mention that FinTap helped them get capital when other lenders turned them down, which speaks to its accessibility and flexible approach. It aims to help small business owners achieve success.
Negative reviews, while fewer, often focus on the company’s lack of transparency and slow underwriting procedures. Some users expressed frustration with not knowing the full cost of financing until late in the process or being asked to submit more documentation than initially expected. Some say they couldn’t afford the costs.
Others noted communication issues or dissatisfaction with the repayment structure once funding had begun. FinTap does not respond to negative reviews, raising concerns about their approach to feedback. Some customers feel that the good reviews for FinTap are fake. There are hints that the popularity of FinTap’s services may be declining based on a drop in website traffic.
While FinTap aims to make business funding more accessible, approval isn’t guaranteed. Reasons for denial could include poor credit, low or inconsistent revenue, and insufficient time in business.
If you are declined, the denial letter should explain why, provide guidance on improving your application, and state when you can apply again. If not, or if you need more information, contact FinTap directly.
Fortunately, if FinTap doesn’t work for them, small business owners can choose from many business funders and lenders. Many online funders offer various revenue-based financing solutions.
You may also be interested in one of the following small business loans:
FinTap can be a reliable funding source for businesses seeking a fast, flexible solution without the hassle of traditional loan applications. Its revenue based financing product may particularly appeal to companies with steady sales that can support regular repayments. However, the lack of cost transparency and unclear underwriting practices may give some business owners pause.
If your business values speed, service, and minimal credit requirements, FinTap may be a great option. On the other hand, if you prefer to compare detailed pricing upfront or have inconsistent revenue, you may want to explore different financing options before committing. Ultimately, your decision should be based on a balance of service, cost, and flexibility—factors that vary from business to business.
Based on the available information, we rate FinTap 2.9 out of 5. It has a good reputation and provides quick funding, but the company’s lack of other options, limited amounts, and lack of transparency limit its effectiveness.
Disclaimer: The FinTap trademark is owned by RDM Capital Funding LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from RDM Capital Funding LLC.
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