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Uncapped Small Business Loans: 2024 Review

Updated Dec 07, 2023

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At a glance

4.1
Rating: 4.1 stars out of 5
Bankrate Score
Caret Down
Accessibility
Rating: 4.2 stars out of 5
Affordability
Rating: 3.9 stars out of 5
Customer experience
Rating: 4.1 stars out of 5
Transparency
Rating: 4.4 stars out of 5
Flexibility
Rating: 3.7 stars out of 5
How Bankrate Scores work Arrow Down

Overview

Founded in 2019, Uncapped provides three short-term financing options that work similar to merchant cash advances. Instead of interest rates, it charges fees. Approvals are based primarily on your business’s flow of revenue, and you’ll need $1.2 million in annual revenue to qualify. Amazon sellers qualify with $10,000 monthly.

Lender Details

  • Moneybag

    Loan amount

    $10,000-$10 million

  • Rates

    Interest rate

    N/A

  • Clock Wait

    Term lengths

    6-24 months

  • Dollar

    Min. annual revenue

    $600,000

  • Business

    Min. time in business

    6 months

Who Uncapped is best for

Uncapped business loans are best for business owners who need working capital loans and can generate high monthly revenue of $100,000 or more. It also works well for Amazon sellers, especially since it lowers its revenue requirement to $10,000 monthly for these Amazon businesses. 

Uncapped could also be a good fit if you don’t want a business bank loan with a personal guarantee or funding through venture capitalists, which requires you to give up equity in your business. 

Since it only requires six months in business, it’s friendly to startups as long as they have strong financials. If you’re a small business owner needing short-term loans that can be paid off in six to 24 months, this lender may also be a good fit for you. 

Who Uncapped may not be best for

Uncapped doesn’t offer traditional loans and lines of credit accessible to businesses that aren’t generating high revenue. It also doesn’t offer long-term loans. So if you prefer set monthly payments that are more manageable over two to five years, you’ll need to look for another small business loan.

This lender also doesn’t offer loans for businesses that don’t make online sales. Its platform connects directly to sales and accounting platforms like Shopify or Quickbooks to determine whether you’re approved for a loan. 

Eligible businesses include:

  • E-commerce
  • Direct-to-consumer businesses
  • Software as a Service (SaaS)
  • Subscription-based companies

Uncapped: in the details

Uncapped pros and cons

Pros

  • Checkmark

    High loan amounts

  • Checkmark

    Welcomes new businesses

  • Checkmark

    No personal guarantees

Cons

  • Internet businesses only

  • High revenue required

  • Aggressive repayment schedule

Business loan types offered

Uncapped offers several types of working capital loans to online businesses. Uncapped business loans are similar to merchant cash advances or revenue-based financing, which secure the loan with revenue. 

While Uncapped states that it offers loan amounts starting at $100,000 on its main website, individual loan pages state that its loans can go down to $10,000 for fixed-rate financing and $50,000 for SaaS runway loans. This discrepancy could cause confusion for potential borrowers. You should verify with a representative if you need a loan for less than $100,000. 

Loan quick facts

  • Amounts: $10,000 to $10 million
  • Terms: Not stated
  • Base fee: from 0.80% monthly base fee, applied as a flat fee based on the number of months in your term

Uncapped fixed-rate financing overview

This type of financing also determines your loan amount by your monthly sales revenue. But you repay the loan plus the one-time fee through fixed payment amounts based on your business’s growth trajectory.

You have the flexibility to choose daily, weekly or monthly payments, whichever suits your cash flow best. But any repayment schedule that’s less than monthly or has short repayment periods of less than two years is aggressive and could leave you feeling tied to loan repayments without much wiggle room.

Loan quick facts

  • Amounts: $50,000 to $10 million; up to 50% of annual recurring revenue
  • Terms: 6 to 24 months revolving
  • Base fee: from 0.80% monthly base fee, applied as a flat rate based on number of months in your term

Uncapped SaaS runway loan overview

This loan is designed for Software as a Service (Saas) companies that need regular access to capital. Once approved, you can draw funds at any time up to your credit limit, and your repayment term of six to 24 months starts. 

Uncapped’s SaaS runway loan charges a monthly fee calculated on the principal balance each month, rather than simple interest or an annual percentage rate (APR).

You can borrow up to half of your annual recurring revenue. Uncapped does want to see that you’re growing as an SaaS company with a low exit rate (called churn) from your customers.

Loan quick facts

  • Amounts: Not stated
  • Terms: Not stated 
  • Base fee: Not stated

Uncapped offers business loans for Amazon sellers with a much lower revenue entry point, only requiring $10,000 in monthly revenue to apply. Uncapped approves 80 percent of Amazon seller applications, so you have a high chance of getting funding. 

Simply connect Uncapped to your Amazon store upon applying, and it will generate an offer based on your past Amazon sales. Your products must be fulfilled by Amazon in order to qualify.

How to determine Uncapped's fixed fee

When you take out an Uncapped business loan, you agree to share a percentage of your revenue until the loan and fee are repaid. Uncapped states most businesses share 5 percent to 25 percent of future revenue. In addition to high revenue requirements, Uncapped likes to see that your revenue is growing over time. 

But instead of charging APRs or factor rates, Uncapped charges a percentage of the loan amount as a flat base fee. Your total cost of the loan will be based on this fee and the amount of time it takes you to repay the loan.

For example, if you take out a $50,000 loan with a monthly fee of 1.50 percent and a repayment term of 12 months, you’ll be charged a base fee of 18.00 percent (1.50% x 12 months = 18.00%). That means you’ll owe a $9,000 fee ($50,000 x 18.00% = $9,000) for a total of $59,000.  

To make sure this is the right type of loan for you, use a business loan calculator to compare Uncapped’s loan costs with traditional loans that use interest rates. In some cases, you may be able to get a loan elsewhere that costs less or has more manageable monthly payments.

Do you qualify? 

While Uncapped doesn’t require a minimum credit score, it’s specific with the type of business and how much revenue you currently earn. Its requirements include:

  • Online-based business: e-commerce, direct-to-customer, SaaS, subscriptions
  • 6+ months in business
  • At least $50,000 in monthly sales
  • About 40% of revenue from online sales
  • Trajectory of growth in sales

 

What we like and what we don’t like

Uncapped helps budding online businesses get quick funding with a straightforward model of reviewing your business’s creditworthiness. But the biggest downside is its revenue requirement. 

What we like

  • High loan amounts. You can score funding with Uncapped as high as $10 million, if you generate enough revenue to support that high a loan. 
  • Welcomes new businesses. Uncapped sets its minimum time in business at six months, offering funding to startups. Many lenders require one to two years before you’re eligible.
  • No personal guarantees. Unlike most business loans, you don’t have to sign a personal guarantee for Uncapped. Personal guarantees add risk to a business loan since you’re essentially backing the loan with your personal assets. 

What we don’t like

  • Not accessible to non-internet businesses. You have to be able to connect your sales data to the platform. 
  • High revenue required. Uncapped’s monthly sales requirement is $100,000, which translates into $1.2 million in annual revenue. This is one of the highest requirements we’ve seen for an online lender. You can get a lower requirement down to $10,000 monthly if you’re an Amazon seller.
  • Aggressive repayment terms. Some loans offer daily, weekly or biweekly payments, which is a tight schedule compared to most business loans’ monthly payments. Uncapped does offer monthly payments for its fixed-rate financing.

How Uncapped compares to other lenders

Uncapped keeps its loan options pretty niche compared to other lenders on the market, focusing on online-only businesses. But its loan sizes are higher than similar lenders.

Rating: 4.1 stars out of 5
4.1

Bankrate Score

  • Loan amount

    $10,000-$10 million

  • Interest rate

    N/A

  • Term lengths

    6-24 months

  • Min. time in business

    6 months

  • Min. business annual revenue

    $600,000

Rating: 4.6 stars out of 5
4.6

Bankrate Score

  • Loan amount

    $5,000-$10 million

  • Interest rate

    1.11 Factor rate

  • Term lengths

    3 months-10 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $300,000

Rating: 4.5 stars out of 5
4.5

Bankrate Score

  • Loan amount

    $5,000-$1.5 million

  • Interest rate

    Not stated

  • Term lengths

    Up to 16 months

  • Min. time in business

    3 months

  • Min. business annual revenue

    $144,000

Read our review

on Bankrate

Uncapped vs. Credibly 

Credibly caters to a broader customer base and is more accessible to getting approved than Uncapped. Credibly offers a working capital loan, business line of credit, invoice factoring, merchant cash advance and SBA loans. It also requires just $300,000 in annual revenue and FICO score of 550 to qualify. Uncapped offers fewer types of loans. It focuses on revenue-based financing and also requires a hefty $600,000 in annual revenue. 

Credibly does prefer stronger applicants with $540,00 in annual revenue, three years in business and a 675 personal credit score. While these requirements are high, they’re still lower than Uncapped’s requirements unless you go with Uncapped’s Amazon seller funding.

Uncapped offers fewer types of loans. It focuses on revenue-based financing and also requires a hefty $1.2 million in annual revenue, though Amazon sellers can qualify with just $120,000 annually. 

Focusing on the merchant cash advance, Credibly’s MCA comes with repayment terms of three to 15 months, while Uncapped’s terms go from two to 24 months. Credibly also offers a smaller amount of funding compared to Uncapped — up to $400,000 versus Uncapped’s $10 million. 

Comparing Credibly vs. Uncapped fees

Credibly’s fee starts at a 1.09 factor rate. A $50,000 loan from Credibly with a 1.09 factor rate means you’ll end up repaying $54,500 ($50,000 x 1.09 = $54,500), not including additional fees. As long as you pay on time, that cost won’t go up the longer it takes you to pay off your debt. Credibly does offer a prepayment discount that could reduce the cost if you pay off your total balance before the final due date.  

On the other hand, Uncapped charges a more confusing fee structure. It starts with 0.70 percent to 1.50 percent and multiplies that number by the number of months in your term.

For example, a $50,000 loan with a 1 percent monthly fee has a minimum total base fee of 2 percent if you choose a two-month term. That means the lowest total cost you would repay would be $51,000 ($50,000 x 2.00% = $1,000 fee), but only if you can pay the loan off within the required two-month period. 

If it takes eight months, the fee grows from 2 percent to 8 percent. So now the total cost you repay is $54,000 ($50,000 x 8.00% = $4,000 fee). And if it takes you 12 months to repay the loan, it would cost $56,000 ($50,000 x 12.00% = $6,000), which is more than a similar loan from Credibly but with a shorter repayment period.

So Uncapped’s loans could cost more the longer it takes you to pay off your debt. Before choosing a fee-based loan, always compare those costs with traditional loans that charge interest rates to make sure you’re choosing the most affordable option.  

Uncapped vs. Fora Financial 

Both Fora Financial and Uncapped offer short-term, revenue-based advances with aggressive repayments. Uncapped offers terms for some loans up to 24 months, while Fora Financial’s revenue advance stops at 16 months. In terms of payment schedules, Uncapped does have revenue-based loan options with bi-weekly or monthly schedules. Fora Financial also offers short-term loans with daily or weekly repayments.

But Fora Financial is more friendly to small businesses that only need a small amount of funds. For example, Fora Financial provides lower loan sizes starting at $5,000 and going all the way up to $1.4 million. Uncapped goes from $10,000 to $10 million, which caters to more established businesses. 

Fora Financial also requires just $144,000 in annual sales and three months in business, and it works with bad credit borrowers who have FICO scores as low as 500. Meanwhile, Uncapped’s requirements are $120,000 in annual sales for Amazon sellers or $1.2 million for other businesses, though it doesn’t state a minimum credit score.

How to apply for a loan with Uncapped 

You can apply in just a few steps through Uncapped’s online application. During the application process, you’ll connect your sales or accounting services to Uncapped so that it can analyze your revenue. 

Its website specifically mentions connecting to Paypal, Shopify, Stripe and Quickbooks. Uncapped will come back with a quote within 24 hours.

Basic information that you’ll provide about your business:

Required application information

  • Business name
  • Country
  • Monthly revenue 
  • Type of business

Uncapped frequently asked questions

How Bankrate rates Uncapped

Overall Score 4.1
Accessibility 4.2 While Uncapped loans are available to startups, businesses need high revenue and an online model to qualify.
Affordability 3.9 Its fee structure starts low. But it’s a one-time fee that you’ll pay whether or not you repay the loan early.
Transparency 4.4 It offers some details about how its loans work on its website.
Customer experience 4.1 You can apply online and manage your loan through an online account. But it lacks a customer support number.
Flexibility 3.7 It gets points for unique financing options, but repayments are aggressive.

Methodology

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
770+
data points collected

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.