Rapid Finance offers business loans through its extensive network of vendors to help businesses find competitive loan options. Small businesses seeking loans between $5,000 to $1 million can receive funds that go directly into their business bank account within hours.
They provide multiple loan types including bridge loans, asset-based loans, and invoice factoring, with terms ranging from a few months to several years.
If you’re a business owner seeking an easy application process and fast funding, Rapid Finance might be worth considering.
Read this Rapid Finance review to learn more about what they offer.
What is Rapid Finance?
Based in Maryland, Rapid Finance is an online loan provider that partners with various lenders to offer small business financing options. The company has provided business borrowing since 2005.
This makes it one of the longest-standing alternative lenders in the market, focusing on providing straightforward funding processes that deliver fast capital to business owners.
For business owners needing capital to expand operations and purchase inventory, Rapid Finance offers valuable services. Beyond working with an extensive network of lenders, Rapid Finance also provides its own financing products.
What does Rapid Finance Offer?
Rapid Finance provides several loan options to help finance small businesses. Depending on the loan purpose, small business owners can use Rapid Finance to find suitable financing solutions.
Here’s an overview of the loan types Rapid Finance offers.
Small Business Loans
Businesses can use small business loans to receive an upfront lump sum for various business needs. From purchasing equipment and funding expansion to filling cash flow gaps, small business loans offer flexible financing.
Small business loans with Rapid Finance include:
- Funds from $5,001 to $1 million
- Fixed payments paid daily, weekly, or monthly
- Terms from three months up to sixty months
Small business loan funds are available within hours of approval and deposited directly into your business bank account.
Merchant Cash Advances
A merchant cash advance (MCA) provides access to working capital based on future credit card or other receivables. This alternative financing form gives businesses an upfront lump sum in exchange for a portion of future revenue at a discounted rate.
MCAs don’t have fixed payment terms since they’re based on business receivables. Typical completion dates range from 3 to 18 months.
Lines of Credit
A line of credit offers access to a specified amount of working capital. It works similarly to a credit card. The business is approved for a set credit amount and can access up to the limit as needed.
Unlike other loan types, you only repay the amount drawn from the limit. Rapid Finance’s lines of credit include:
- Automatic daily, weekly, or monthly payments
- Amortization from 3-18 months
- Financing from $5,001 to $250,000
Bridge Loans
This short-term loan helps businesses bridge the gap between current needs while awaiting longer-term solutions. It’s an excellent option for funding real estate purchases, expanding operations, or managing cash flow.
Rapid Finance’s bridge loans feature:
- Financing options from $5,001 to $1 million
- Loan terms from 3 months up to 5 years
- Fixed, automatic payments withdrawn from your business bank account
SBA Loans
A Small Business Administration Loan is partially backed by the government. SBA loans are administered by the Small Business Administration, whose goal is to fund businesses that may otherwise lack available loan options.
SBA loans include:
- Financing options from $500 to $5.5 million
- Loan terms from 1 year up to 30 years
- Fixed monthly payments
Invoice Factoring
With invoice factoring, a business sells its invoices at a discounted price in exchange for working capital access. Payments on invoices are sent directly to the lender until the advance is repaid.
Rapid Finance’s invoice factoring business loans include:
- Advances starting at $20,000 to $10 million
- Access to working capital with outstanding 30, 60, or 90-day invoices
- Simple application process allowing you to submit outstanding invoices
Asset Based Loans
Asset-based loans use a company’s assets as collateral to secure financing. These loans allow you to borrow money on an ongoing basis.
Rapid Finance’s secured loans include:
- Loan amounts from $50,000 to $10 million
- Loan terms starting at 6 months up to 36 months
- Fixed payment frequency with daily, weekly, or monthly options
Commercial Real Estate loans
Commercial real estate loans are designed to help businesses purchase, develop, or build property. These loans are exclusively available for commercial properties.
Rapid Finance’s commercial real estate loans include:
- Loan amounts from $75,000 to $2 million
- Loan terms from 5 years to 20 years
- Automatic monthly payments
How much does Rapid Finance cost?
Very little information regarding specific rates and fees is available on Rapid Finance’s website. Each customer undergoes individual review.
Rapid Finance charges interest rates and may also charge fees on its loan types.
You’ll want to review the rates and terms of loan products you’re considering to understand your costs.
You won’t pay origination or documentation fees on any loan types. The interest rate you receive depends on your credit score.
Higher credit scores typically result in lower interest rates.
How to Qualify for a Rapid Finance loan
Several factors are considered when businesses submit loan applications. Each lender in Rapid Finance’s network has its own underwriting criteria.
Generally, each direct lender examines the business owner’s credit profile and other data demonstrating loan repayment ability.
Rapid Finance doesn’t disclose minimum credit score requirements on their website. Poor credit will likely reduce approval chances or increase interest rates.
Ideally, you should have at least a 670 credit score to receive more favorable loan terms and lower interest rates.
Rapid Finance doesn’t disclose minimum time-in-business requirements either. Most business lenders require businesses to operate for one to two years.
Some lenders accept applications from businesses operating for at least six months.
You must have at least three months of bank statements to apply through Rapid Finance.
Most business lenders require minimum annual revenue between $50,000-$250,000. Since Rapid Finance doesn’t disclose this information, use this as a general guideline.
Who is Rapid Finance best for?
Rapid Finance works best for small business owners requiring fast funding. In some cases, you can receive funding within hours of approval.
If you’re unsure which financing type would be best, they offer various loan options. Rapid Finance also provides loan representatives to help navigate your choices.
If you’re seeking the lowest rates, Rapid Finance might not be ideal. Their key benefit is fast funding, which generally means higher rates and fees.
The company doesn’t make it easy to shop for rates and compare details. You’ll need to speak with representatives to review options, which can be time-consuming.
Rapid Finance Pros and Cons
Pro: Funding Times Are Fast
The approval process is fast with Rapid Finance, as are funding times. For certain loan types, you’ll receive funding within hours of approval.
Pro: Available in Most States
Rapid Finance loan options are available in nearly every state in the U.S., so you’ll likely have choices in your area.
Pro: Variety of Loan Options
You can find merchant cash advances, lines of credit, invoice factoring loans, SBA loans, and many other loan types with Rapid Finance.
This increases your chances of finding business financing that matches your situation.
Pro: Simple Application Process
The application process with Rapid Finance is straightforward. You can determine qualification in just a few minutes.
Pro: Low Credit Score Applicants May Have Options
Rapid Finance has no minimum credit score requirement. Low credit score borrowers could potentially be approved for loans, though low scores will likely result in higher interest rates.
Pro: Term Lengths are Varied on Many Financing Options
Because Rapid Finance offers varied term lengths on many loans, you’ll have more flexible payment options.
Pro: Good Customer Service
Rapid Finance reviews indicate their customer service team is very helpful. This is particularly important since there’s no physical location to visit if problems arise.
Pro: High Lending Limits
Looking at lines of credit or invoice financing? Rapid Finance’s loan offerings feature generous borrowing limits.
Pro: Better Business Bureau Rating
Rapid Finance has been accredited by the Better Business Bureau since 2010 with an A+ rating.
Con: Startups Don’t Qualify
Rapid Finance falls short in offering loan options to startups, which limits the businesses that can secure financing through them.
Con: Loan Offerings ARE Not Available in New Jersey, Montana, Nevada, and Rhode Island
If you’re a business owner in these four states, you won’t find loan options like lines of credit with Rapid Finance.
Con: Automatic Payments are Required
Most loans require automatic payment setup. If your cash flow isn’t consistent, your bank account could fall into the red.
Con: Doesn’t Disclose Rates and Fees
Rapid Finance doesn’t list interest rates or associated fees on its website. Additionally, they make it difficult to compare loan terms with other options. Few people today want to make phone calls and speak with representatives to review different choices.
Con: Potentially Expensive
Without excellent credit, you may pay significantly higher interest rates. It might not be worthwhile to pursue merchant cash advances or other loan types if you’re facing excessive rates.
Bottom Line: Rapid Finance Review
Startups won’t find loan options with Rapid Finance. However, if you have an established business needing fast financing and want to avoid lengthy application processes, Rapid Finance is an excellent option. With multiple financing choices available, you’re more likely to find a loan that meets your specific needs.
