Rapid Finance

About Company

Rapid Finance offers various small business financing options tailored to the needs of small business owners. These options include traditional term loans, asset-based loans, merchant cash advances, and lines of credit. Small businesses can access working capital through Rapid Finance to support their operations, whether it be for daily, weekly, or monthly needs. The application process is facilitated online through Rapid Finance's website, providing a convenient and fast funding solution for small business owners.

Features

1. Quick Funding. Rapid Finance prides itself on providing fast and efficient funding solutions. Small businesses can access the working capital they need promptly, making it an ideal choice for those requiring swift financial assistance.

2. Flexible Payments. The flexibility in repayment terms is a key feature of Rapid Finance. Business owners can choose between fixed monthly payments or other arrangements that suit their specific financial situation and cash flow needs.

3. Easy Application Process. Applying for financing with Rapid Finance is a streamlined process that takes only a few minutes. The online application on Rapid Finance's website simplifies the entire procedure, offering convenience to small business owners seeking quick financial support.

4. Not a Direct Lender. Rapid Finance operates as an alternative lender, distinguishing itself from traditional direct lenders. This distinction can be advantageous for small businesses looking for alternative financing options beyond what traditional business banks might offer.

Pros and Cons

Pros

Cons

How to Get a Rapid Finance Loan?

1. Visit Rapid Finance's Website. Start by visiting Rapid Finance's official website. Navigate to the loan application section, where you can begin the process.

2. Complete the Quick Application. Rapid Finance provides a quick application form that you can fill out online. Enter the necessary information, including your business details and the type of loan you are seeking.

3. Provide Business Information. Depending on the specific loan type, you may need to provide details about your business. This could include your business bank account and routing number, along with proof of identification, such as a driver’s license.

4. Submit Bank Statements. As part of the application process, you'll typically be required to submit your business bank statements for the previous three months. Ensure these statements are accurate and up-to-date.

5. Review and Submit. Carefully review the information you've provided in the application. Once you're confident that all details are accurate, submit your application to Rapid Finance for review.

6. Application Review. Rapid Finance will review the information you submitted. If additional information is needed, a representative from Rapid Finance may contact you for clarification or to request further documentation.

Requirements and Conditions

Requirements

1. A Valid Form of Identification. Applicants will need to provide a valid form of identification, such as a driver’s license or other government-issued ID.

2. Business Bank Account Number and Routing. To facilitate the disbursement of funds, applicants are required to provide their business bank account number and routing information.

3. Last Three Months of Business Bank Statements. As part of the application process, applicants must submit the last three months of their business bank statements. This helps Rapid Finance assess the financial health and stability of the business.

4. Personal Credit Score. Rapid Finance does not explicitly disclose its minimum credit score requirement for business loans. While some reviews suggest a minimum credit score of 550, it is advisable to maintain a good personal credit score, ideally at least 670, to potentially secure more favorable terms, including lower interest rates.

5. Time in Business. Rapid Finance does not specify a minimum time-in-business requirement for loan approval. However, many lenders typically expect a business to have been in operation for at least one to two years.

6. Annual Revenue Requirements. Rapid Finance does not provide specific details about minimum annual revenue requirements. Generally, business lenders may look for annual revenues ranging from $50,000 to $250,000.

Conditions

1. Loan Amounts. The loan amounts are contingent on the specific type of loan. For instance, with invoice factoring, businesses may access funding up to $10 million. The amount you qualify for will depend on the nature of the loan and your business's financial situation.

2. Loan Terms. The terms of the loan also differ based on the type. For example, bridge loans through Rapid Finance may have terms that extend up to 60 months. The duration of the loan will be determined by the type of financing you choose and your business's needs.

3. Interest Rates. Rapid Finance does not disclose specific information regarding interest rates. The rates are likely to vary depending on factors such as the type of loan, the creditworthiness of the borrower, and other financial considerations.

Products

1. Small Business Loans. Term loans designed to provide small businesses with upfront lump-sum payments. These loans are suitable for starting, growing, or maintaining business operations. Repayment schedules can be weekly or monthly, depending on the agreement with the lender.

2. Merchant Cash Advance (MCA). MCAs allow businesses to borrow money and repay it based on a percentage of each credit card transaction. It provides flexibility but typically comes with higher fees compared to traditional financing options.

3. Business Line of Credit. Lines of credit offer businesses access to a credit line that can be borrowed against as needed, similar to a credit card. Interest is charged only on the borrowed amount, and businesses can reuse the credit limit as they repay the balance during the draw period.

4. Bridge Loan. Short-term loans designed to assist businesses in covering immediate expenses while they secure more favorable, long-term financing for larger purchases. Bridge loans effectively bridge the gap between the present and future financing.

5. U.S Small Business Administration (SBA) Loan. SBA-backed loans with more stringent qualification requirements and a longer closing process compared to traditional business loan products. However, SBA loans often feature lower interest rates and offer terms extending up to 25 years.

6. Invoice Factoring. Financing option where businesses sell their invoices to a third-party factoring company in exchange for an upfront cash payment. The factoring company then assumes responsibility for collecting unpaid invoices and pays the remaining balance, minus the factor fee, once all invoices are settled.

7. Asset-Based Loan. Loans secured with collateral, such as a vehicle, business bank account, or property. The collateral reduces the risk for the lender, resulting in potentially lower interest rates for the borrower.

Other Loans

• Best Business Loans

Ways to Receive the Money

If approved for a loan from Rapid Finance, the borrowed amount will be disbursed directly to the business bank account you provided during the application process. This ensures a convenient and straightforward transfer of funds to support your business needs. The disbursement process is efficient, and you can expect the funds to be deposited into your business bank account once the approval process is complete.

Things to Pay Attention To

1. Loan Options. Rapid Finance provides a variety of financing options, including Rapid Finance business loans, unsecured loans, secured loans, and commercial real estate loans. Understand the specific loan types offered to determine the best fit for your business needs.

2. Repayment Terms. Be aware of the repayment terms associated with the loan you choose. Rapid Finance offers options like fixed payments, allowing for predictable monthly payments, and automatic payments for added convenience.

3. Fees and Interest Rates. While Rapid Finance does not disclose specific interest rates, pay attention to any fees associated with the loan. Consider the potential cost of borrowing, including fixed fees, and compare it with other lenders.

4. Business Bank Account. Ensure you have a business bank account, as Rapid Finance typically disburses funds directly to this account. Having a dedicated business account is crucial for the smooth transfer of borrowed funds.

5. Online Tools. Explore Rapid Finance's online calculator and any other available tools on their website. These resources can help you estimate potential loan costs and understand the financial implications of your borrowing decisions.

6. Customer Reviews and Better Business Bureau (BBB) Rating. Check Rapid Finance reviews, including any Rapid Finance review on the Better Business Bureau (BBB) website. Understanding other businesses' experiences can provide valuable insights into the lender's reputation and customer satisfaction.

How to Repay a Rapid Finance Loan?

1. Fixed Payments. Make fixed payments as agreed upon during the loan approval process.

2. Automatic Payments. Opt for automatic payments for added convenience. This ensures timely payments and helps avoid potential late fees.

3. Business Bank Account. Maintain a business bank account, as Rapid Finance typically disburses funds and collects repayments directly from this account.

4. Repayment Frequency. Understand the agreed-upon repayment frequency, whether it's weekly or monthly, and ensure compliance with the schedule.

5. Monitor Account Balance. Regularly monitor your business bank account to ensure sufficient funds are available for automatic payments and to avoid any payment issues.

Reasons for Getting Rejected for a Rapid Finance Loan

1. Credit Score. A low personal or business credit score may result in rejection. Rapid Finance, like many lenders, considers creditworthiness when assessing loan applications.

2. Insufficient Time in Business. Rapid Finance may have certain requirements regarding the minimum time a business needs to be in operation. If your business hasn't been established for a sufficient duration, it could impact loan approval.

3. Low Monthly Sales or Revenue. If your business has consistently low monthly sales or revenue, it may affect your eligibility for certain types of loans. Lenders often assess the financial stability and income-generating capacity of a business.

4. Inadequate Business Bank Statements. Providing inaccurate or incomplete business bank statements may lead to rejection. Lenders use these statements to assess your business's financial health and cash flow.

5. Unstable Business Financials. Rapid Finance may scrutinize your business financials, and instability, irregularities, or financial distress could result in a loan rejection.

Alternatives

• National Funding offers a variety of financing solutions, including small business loans, equipment financing, and merchant cash advances. They provide quick funding and flexible repayment options tailored to the needs of small businesses.

• PNC Bank is a traditional bank that provides a range of financial services, including business loans, lines of credit, and business credit cards. They offer a more traditional banking approach with various financing options for businesses of different sizes.

• BlueVine is an online lender specializing in business lines of credit, term loans, and invoice factoring. They are known for their user-friendly online platform and efficient funding processes, making them a popular choice for small businesses.

• TD Bank is a traditional bank that offers business loans, lines of credit, and commercial real estate financing. They provide a comprehensive suite of financial services for businesses, combining traditional banking with modern conveniences.

Loans like Rapid Finance

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• Rapid Finance Account Review
• How to Apply for Rapid Finance Loan
• How to PayOff Rapid Finance Loan
• Rapid Finance Mobile Apps
• Rapid Finance Reviews

Sources

• Rapid Finance

• Rapid Financial Services, LLC | Better Business Bureau® Profile