Rapid Finance Business Loans Review
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Pros and cons of Rapid Finance
Pros
- A wide variety of small business financing products are available
- Streamlined application process
- Ability to fund loans in as quickly as within 24 hours
Cons
- Lacks transparency around available interest rates and borrower eligibility requirements
- Some loans may require automatic payments
- Some loans may require collateral
Rapid Finance small business loans review
Since 2005, Rapid Finance has aimed to provide fast, transparent and tech-enabled financing solutions for small business owners. For the most part, they’ve succeeded. The company’s online application process takes just a few minutes to complete and, in some cases, you can receive funding within 24 hours of approval.
However, transparency is where they fall short. Although Rapid Finance lists its available loan amounts and terms, it doesn’t disclose any interest rate information or eligibility criteria, making it hard to know if you’re a good fit.
They also work with partner lenders to fund some products, but the website lists conflicting information on which small business financing options are funded in-house versus by a partner provider. This means that if you apply on the Rapid Finance website, you may be offered financing from Rapid Finance, but you also may be referred to another lender.
Despite the lack of transparency, Rapid Finance has solid user ratings. It has a 4.5-star rating with over 2,000 reviews on TrustPilot and an A+ rating from the Better Business Bureau. Positive reviews speak to the company’s smooth application process and fast funding times, while negative ones mention high rates and poor customer service.
- Business owners willing to pay a premium for fast funding. Rapid Finance has the ability to fund loans in as little as 24 hours, but reviews suggest that expediency may come hand-in-hand with high rates.
- Business owners who want to prequalify. Rapid Finance allows you to prequalify for its funding. While doing so can help you get a better idea of what to expect for your rates and terms, keep in mind it is not a guarantee of approval and the details of the loan offer can change once you formally apply.
Rapid Finance small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loan | $5,001 to $1,000,000 | 3 to 60 months | Not disclosed | Not disclosed |
| Merchant cash advance (MCA) | $5,000 to $500,000 | Based on the business’s receivables | Not disclosed | Not disclosed |
| Business line of credit | $5,001 to $250,000 | 3 to 18 months | Not disclosed | Not disclosed |
| Bridge loan | $5,001 to $1,000,000 | 3 to 60 months | Not disclosed | Not disclosed |
| Invoice factoring | $20,000 to $10,000,000 | Accepts 30-, 60- or 90-day outstanding invoices | Not disclosed | Not disclosed |
| Asset-based loan | $50,000 to $10,000,000 | 6 to 36 months | Not disclosed | Not disclosed |
| Commercial real estate loan | $75,000 to $2,000,000 | 60 to 240 months | Not disclosed | Not disclosed |
Term loans
Rapid Finances short- and long-term business loans offer amounts from $5,001 to $1,000,000 with terms ranging from 3 to 60 months. The funds can be used for a variety of purposes, including expanding your business, covering cash flow gaps, opening a new location or purchasing equipment.
These loans come with fixed payments and you can receive your funds in as little as a few hours after you’re given loan approval.
Merchant cash advances
If you need funding fast and make a decent amount of credit card sales each month, consider Rapid Finance’s merchant cash advance. This type of financing gives you an advance on future credit card sales or other receivables, ranging from $5,000 to $500,000.
Although the company boasts that there is no set repayment timeline, it also estimates that most advances will likely be repaid within three to 18 months. Notably, automatic payments are required and any fees charged by the company will also be deducted from the advance amount.
Lines of credit
When you need flexible funding, think about a business line of credit. This financing solution lets you borrow money on an as-needed basis, from $5,001 to $250,000. Plus, Rapid Finance’s offering is unique in that you can access the funds via ACH transfer or a prepaid card that comes with your account.
Terms last between 3 to 18 months, but the term could reset each time you draw from the account. This can make repayments simpler to handle and track, but can also lead to paying more in interest.
Bridge loans
If you need a commercial bridge loan to tide you over until you can receive a more permanent form of financing, Rapid Finance funds them through its partner network. Available in amounts up to $1,000,000, with terms ranging from 3 to 60 months, these loans can come in handy when buying real estate, expanding or managing cash flow gaps.
However, be aware that automatic daily, weekly or monthly repayments may be required.
Invoice factoring
Business owners who have plenty of outstanding invoices may be interested in Rapid Finance’s invoice factoring program, which it offers through its network of partner lenders. The program accepts 30-, 60- or 90-day outstanding invoices and offers advance amounts ranging from $20,000 to $10,000,000.
Asset-based loans
Asset-based loans are a type of accounts receivable financing, where the borrower uses the company’s assets as collateral for the loan. Funding for this type of loan is likely done through Rapid Finance’s partners, as it notes that rates can vary from lender to lender. However, since this product is a secured loan, Rapid Finance asserts that its network may be able to offer more affordable rates.
Loan amounts are ultimately based on the value of the asset, but Rapid Finance offers between $50,000 to $10,000,000. Loan terms range from 6 to 36 months.
Commercial real estate loans
If you need a commercial loan to purchase, develop or construct real estate, Rapid Finance has you covered. Loan amounts go up to $2,000,000, with terms ranging from 60 to 240 months and automatic monthly payments required.
Rapid Finance borrower requirements
Unfortunately, Rapid Finance chooses not to disclose any information on minimum credit scores, time in business or revenue to qualify for financing.
If you want to get a sense of the rates and terms that they can offer you, you’ll need to fill out their prequalification form and get a quote.
Required documents
On the other hand, the company is very open about the documents you’ll need to submit to prequalify. Each type of loan has its own business loan requirements, so here’s an overview of what to expect:
- Term loan: Valid form of ID, business bank account information and three months of business bank statements
- Merchant cash advance: Valid form of ID, business bank account information, three months of business bank statements and three months of credit card processing statements
- Line of credit: Valid form of ID, business bank account information and three months of business bank statements
- Bridge loan: Valid form of ID, business bank account information and three months of business bank statements
- Invoice factoring: Valid form of ID and unpaid invoices from a reputable creditor
- Asset-based loans: Valid form of ID and three months of business bank statements
- Commercial real estate loan: Valid form of ID, two years of business tax returns or financial statements and a schedule of debts.
You may be asked to provide additional documentation by Rapid Finance or its partner lenders to qualify for financing.
Alternatives to Rapid Finance
| Rapid Finance | Bank of America | Fundible | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 700 for unsecured financing Not disclosed for secured financing | 580 to 650, depending on the loan type |
| Loan products offered |
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| Min. time to funding | Within 24 hours for business term loans | Not disclosed | Same day to 2 business days for most products (SBA loans will take longer) |
| Starting rate | Not disclosed |
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| Maximum loan size |
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| Minimum annual revenue | Not disclosed |
| $96,000 |
Rapid Finance vs. Bank of America
The choice between Rapid Finance and Bank of America will likely come down to which products you need and your desired funding timeline. Bank of America could be a good choice if you need more standard business financing products, like SBA loans, because the banking giant does share some of its qualifying information and is an SBA Preferred Lender.
However, if you need alternative forms of financing, like a merchant cash advance or invoice factoring, you’re likely going to be better off working with Rapid Finance or another online lender. The same holds true if you need same-day funding because a traditional bank is unlikely to work that fast.
Rapid Finance vs. Fundible
If you’re looking for another alternative lender as opposed to a traditional bank, consider Fundible. It offers many of the same products as Rapid Finance, but is much more transparent about its rate ranges and borrower eligibility criteria, which makes it easier to tell if you’re a good match for the lender.
Still, you won’t be able to get a merchant cash advance, asset-based loan, or commercial real estate loan with Fundible, so if you need those products, Rapid Finance may be a solid bet. Plus, you may be able to get higher loan amounts if you choose Rapid Finance.
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