Rapid Capital: Funding for Small Businesses
Rapid Capital offers funding as soon as the same day to business owners in need of quick cash. It provides working capital loans, equipment loans and leases, franchise loans and Chapter 11 bankruptcy financing.
Like many alternative small business lenders, it doesn’t provide many details about how these loans work. To add an additional layer of confusion, there’s another similarly-named lender called Rapid Capital Funding — but it’s not related to Rapid Capital. Nor should it be confused with small business lender Rapid Finance.
Rapid Capital funding options
Rapid Capital offers a range of different products, such as loans for working capital (startups included) and franchise loans, as well as financing for Chapter 11 bankruptcy, equipment and even vendors. We spoke with a company representative who declined to say how much these products cost and stated that the finance charges vary depending on your credit.
Here are the details of Rapid Capital’s main offerings. Rates and funding type are based on the best available information provided through the Rapid Capital website and customer service representatives, but may not reflect all rates and terms the lender may offer you:
|Equipment Financing||$10,000,000||Varies, but may average at least 25.00% – 40.00%.||Up to 120 months|
|Working Capital||$10,000,000||Varies, but may average at least 25.00% – 40.00%.||Up to 120 months|
|Franchise Financing||$10,000,000||Varies, but may average at least 25.00% – 40.00%.||Up to 120 months|
Rapid Capital offers two different options for people who need more equipment for their business: equipment loans and equipment leases. You can get financing for up to 100% of the purchase price of the equipment, so you may not need to make a down payment. Keep in mind, however, that using a down payment is always a good idea so that you’re able to pay off the loan quicker and have equity from the start.
Working capital loans are used to cover the day-to-day costs of running your business, such as payroll or supplies. Rapid Capital also has two additional products related to this: Startup financing for new businesses, and bankruptcy financing for businesses that have filed for Chapter 11 bankruptcy.
Opening up a new Domino’s or Taco Bell? Franchises aren’t cheap, but Rapid Capital also offers funding for these business models if you’re in need of cash. In particular, Rapid Capital is also able to provide financing during especially challenging times, such as when you’re first getting started or expanding out to new locations. Rapid Capital may also work with another associated lender if the company itself isn’t able to help you.
Should you apply for financing through Rapid Capital?
If you literally need money for your business today, Rapid Capital is one option. Quick-turnaround lenders have a reputation for being elusive with the details, which often allows them to hide ultra-expensive rates. Rapid Capital certainly fits that picture because it offers scant tangible information, but without any confirmation on rates, we can’t know for sure.
What we can say though is that they are worth contacting if you need short-term funding solutions. But they’re definitely not your only quick cash option so we’d recommend shopping around with multiple lenders.
Rapid Capital funding requirements
- Minimum credit score required: None
- Time in business required: None
- Monthly revenue required: $5,000
- Collateral required: Can use collateral for loans
Rapid Capital doesn’t have a minimum credit requirement to get funding. However, it will take your credit information into account when setting your rates. Rapid Capital declined to provide any more information about what the specific range of rates might be for its products and who qualifies for those rates, although a representative did say that rates often range at an average of at least 25.00% and 40.00%.
If you have a new business and you’re interested in its Startup Funding product, it’s important to know that there is no “time in business” requirement, though that might not be the case for all products. However, you will need to bringing in at least $5,000 per month in order to apply for funding.
How to apply for Rapid Capital
The easiest way to apply for funding or to check your options with Rapid Capital is to call the company at 929-499-3429. You can also fill out a form on Rapid Capital’s website to request someone to get in touch with you, or apply through an online application form. You will need to provide your business details, tax ID number and banking details. Alternatively, there is a mail-in form that you can print off and send in.
Rapid Capital funding: Pros and cons
- Same-day funding
- Personalized financing
- No minimum credit score needed
- Lender is not very transparent
- These types of lenders have a reputation for being very expensive