Rapid Finance Review – Is This Site Worth Using?
Raid Finance offers business loans through its large network of vendors to help find businesses competitive loan options. Small businesses looking for loans between $5,000 to $1 million can receive funds that go directly into their business bank account in a matter of hours.
They have multiple types of business loans including bridge loans, asset-based loans, and invoice factoring. Terms range from a few months to several years.
If you’re a business owner looking for an easy application process and fast funding, Rapid Finance might be the right place to look.
Read this Rapid Finance review to learn more about what they have to offer.
What is Rapid Finance?
Based in Maryland, Rapid Finance is an online loan provider that works with a variety of lenders to offer small business financing options. The company has provided business borrowing since 20055.
That makes it one of the longest-standing alternative lenders in the market. It focuses on providing a straightforward funding process that provides business owners with fast funding.
For business owners that need capital to expand their business, and pay for inventory, Rapid Finance offers a valuable service. In addition to working with a large network of lenders, Rapid Finance also has its own products.
What does Rapid Finance Offer?
Rapid Finance has several loan options to help finance small businesses. Depending on the purpose of the loan, small business owners can use Rapid Finance to find the right financing option for them.
Below is a look at the type of loans that Rapid Finance offers.
Small Business Loans
Businesses can use small business loans to receive an upfront lump sum to help with a variety of business needs. From purchasing equipment, funding an expansion, and filling gaps in cash flow, small business loans are a flexible financing option.
Small business loans with Rapid Finance offer options like:
- Funds from $5,0001 to $1 million
- Fix payments that can be 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 into your business bank account.
Merchant Cash Advances
A merchant cash advance (MCA) provides access to working capital that’s based on the future credit card or other receivables. It’s a form of alternative financing that gives businesses an upfront lump sum in exchange for a portion of future revenue receives that has a discounted price tag.
MCAs don’t have a fixed payment term since they’re based on a business’s receivables. Typical completion dates range from 3 months 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 amount of credit and can access up to the amount of the limit as needed.
Unlike other loan types, you only pay back the amount that is drawn from the limit. Rapid Finance’s lines of credit loan include options like:
- Automatic daily, weekly, or monthly payments
- Amortization from 3-18 months
- Financing from $5,001 to $250,000
This short-term loan helps businesses bridge the gap between a current need while they wait for a longer-term solution. It is a good loan option for funding the purchase of real estate, expanding operations, or managing cash flow.
Rapid Finance’s bridge loans include:
- Financing options from $5,001 to $1 million
- Loan terms from 3 months up to 5 years
- Fixed, automatic payments are withdrawn from your business bank account
A Small Business Administration Loan is a loan program that’s partially backed by the government. SBA loans are administered by the Small Business Administration whose goal with the program is to fund businesses that may otherwise not have loan options available to them.
SBA loans include:
- Financing options from $500 to $5.5 million
- Loan terms from 1 year up to 30 years
- Fixed monthly payments
With invoice factoring, a business sells its invoices at a discounted price in exchange for access to working capital. Payments on invoices are directly sent to the lender until the advance is paid off.
Rapid Finance’s invoice factoring business loans include:
- Advances that start at $20,000 to $10 million
- Access to working capital with outstanding 30, 60, or 90-day invoices
The easy application process that allows you to submit your outstanding invoices
Asset Based Loans
Asset-based loans use a company’s assets as collateral to secure financing. An asset-based loan allows you to borrow money on an ongoing basis.
Rapid Finance’s secured loans include:
- Loan amounts from $50,000 to $10 million
- Loan terms start at 6 months up to 36 months
- Fixed payment frequency from daily, weekly, or monthly payments
Commercial Real Estate loans
Commercial real estate loans are designed to help businesses purchase, develop, or build property. These loans are only available for use with 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?
There is very little information regarding the specific rates and fees you’ll pay available on Rapid Finance’s website. Every customer is reviewed individually.
Rapid Finance charges an interest rate and may also charge a fee on its loan types.
You will want to check the rates and terms of the loan products you’re assessing to understand what you’ll pay.
You won’t pay an origination or documentation fee on any of its loan types. The interest rate you’ll receive will depend on your credit score.
The higher your credit score, the lower the interest rate will be.
How to Qualify for a Rapid Finance loan
Several factors are taken into account when a business submits a small business loan application. Each lender in Rapid Finance’s network has its own underwriting criteria.
Generally speaking, each direct lender is looking at the business owner’s credit profile and other data that demonstrate the ability to repay the loan.
The minimum credit score requirements aren’t disclosed on Rapid Finance’s website. If you have poor credit, it will likely lower your chances of being approved or increase the interest rate you’ll pay.
Ideally, you should have at least a 670 credit score to receive more favorable loan terms like a lower interest rate.
Rapid Finance doesn’t disclose any information about the minimum time-in-business to be approved either. The majority of business lenders require that your business is in existence for one to two years.
There are some lenders that will accept applications from small businesses that have been operating for at least six months.
You must have at least three months of bank statements to apply on Rapid Finance. Keep that in mind when applying for a loan through them.
The minimum annual revenue requirement that most business lenders require is between $50,000-$250,000. Rapid Finance doesn’t disclose this information, so you should use this as a guide.
Who is Rapid Finance best for?
Rapid Finance works best for small business owners who need fast funding. In some cases, you can receive funding as soon as a few hours after being approved for a small business loan.
If you’re not sure what type of financing would be best, there is a variety of loan types. Rapid Finance also has loan reps that can help you navigate through the options.
If you’re looking for the lowest rates, Rapid Finance might not be the best choice. Its key benefit is fast funding, which generally means you’ll pay higher rates and fees.
The company doesn’t make it very easy for you to shop for rates and other details very easily easier. You’ll have to talk to one of their representatives to review all your options, so that can be time-consuming.
Rapid Finance Pros and Cons
Pro: Funding Times Are Fast
The approval process is fast with Rapid Finance in addition to its funding times. In some cases for certain types of loans, you’ll receive funding just a few hours after being approved.
Pro: Available in Most States
Rapid Finance loan options are available in almost every state in the U.S. So it’s likely that you’ll have choices in your area.
Pro: Variety of Loan Options
You can find a merchant cash advance, line of credit, invoice factoring loan, an SBA loan, and many other types of loans with Rapid Finance.
This increases your chances of finding a business loan that works for your situation.
Pro: Simple Application Process
The application process with Rapid Finance is straightforward. In just a few minutes, you can find out if you qualify.
Pro: Low Credit Score Applicants May Have Options
There is no minimum credit score requirement with Rapid Finance. It’s possible that low credit score borrowers could be approved for a loan. Keep in mind that a low credit score will also likely mean you’ll pay interest rates that are higher.
Pro: Term Lengths are Varied on Many Financing Options
Because Rapid Finance has many different term lengths on many of its loans, you’ll have more flexible payment options.
Pro: Good Customer Service
Rapid Finance reviews about its customer service team indicate that they are very helpful. This is particularly important since you don’t have a physical location to visit if there are problems.
Pro: High Lending Limits
Looking at lines of credit or invoice financing? Rapid Finance’s loan offerings have generous borrowing limits.
Pro: Better Business Bureau Rating
Rapid Finance has been accredited by the Better Business Bureau since 2010. Its Better Business Bureau rating is A+.
Con: Startups Don’t Qualify
One of the areas that Rapid Finance falls short is offering loan options to startups. That cuts the list of businesses that can find a business loan with them.
Con: Loan Offerings ARE Not Available in New Jersey, Montana, Nevada, and Rhone 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
You must set up automatic payments with most of the loans. So if your cash flow isn’t consistent, your bank account can fall into the red.
Con: Doesn’t Disclosure Rates and Fees
Rapid Finance doesn’t list its interest rates or other associated fees with loans on its website. Additionally, they make it difficult to compare loan terms with other options. Few people these days want to make phone calls and talk to someone to review different options.
Con: Potentially Expensive
If you don’t have the best credit, you may be paying much higher interest rates. It might not even be worth taking out merchant cash advances or other loan types if you’re paying an excessive rate.
Bottom Line: Rapid Finance Review
Startups won’t have any loan options with Rapid Finance. But if you have a business that needs access to fast financing and wants to avoid a lengthy application process, Rapid Finance is a great option. It has multiple financing options so it’s also more likely that you’ll find a loan that meets your needs.