Rapid Finance Small Business Loans Review

About Rapid Finance

Rapid Finance

Need funding? Rapid Finance provides fast and easy financing solutions, so your business gets the attention and funds it needs. The application process is fast and approval is based on your business’s overall health, not just a credit score. Rapid Finance offers a suite of programs that can assist your business with a variety of expenses and day-to-day operations. Having provided over $1.5B in funding to businesses nationwide, Rapid Finance offers a variety of funding options that can be customized to fit any business need.

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What is Rapid Finance?

Rapid Finance is a non-bank online lender providing fast financing to small business owners. Since 2005, Rapid Finance has provided more than $1 billion to more than 38,000 businesses, and more than 75% of clients have renewed their financing with the lender. Rapid Finance is based in Bethesda, Md. The company is a direct funding source, conducting its own underwriting and supplying funds through its own bank financing. Detroit-based Rockbridge Growth Equity, which also owns Quicken Loans, acquired Rapid Finance in 2013.

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Lender highlights

Large selection of products. Rapid Finance offers several loan products to meet your financing needs. Borrowers can find a small or large amount of funding to cover working capital expenses.
Established businesses are preferred. Rapid Finance requires at least one year in business and steady monthly revenue to be approved for financing. Startup businesses may not be able to meet these requirements.
Outstanding business loans are not a problem. Rapid Finance financing is designed to work alongside traditional financing without affecting existing obligations. Some online lenders won’t approve businesses with existing debt, but Rapid Finance does not deny businesses that are paying off other loans.


What does Rapid Finance offer?

Rapid Finance: At a glance
Loan product Loan amount Loan term Time to funding
Preferred rate loan $25,000 to $100,000 9 to 18 months Approval in hours; funding arrives in 1 to 7 days
Merchant cash advance Up to 250% of your monthly credit card sales Not provided by the lender Approval in hours; funding arrives in 1 to 7 days
Small business loans $5,000 to $1,000,000 Up to 18 months Approval in hours; funding arrives in 1 to 7 days

Rapid Finance also offers a business line of credit and an SBA Bridge loan to qualifying borrowers. The details of these products were not provided by the lender.


Eligibility requirements

Loan product Revenue Min. business credit score or personal credit score Time in business
Preferred rate loan Not provided by the lender Personal score of 660 or higher 4+ years
Merchant cash advance $5,000 in monthly revenue Not provided by the lender 1+ year
Small business loan $5,000 in monthly revenue Not provided by the lender 2+ years

Additional eligibility factors

Merchant cash advances are offered at two levels. Businesses with as few as three months’ worth of credit card sales could qualify for the Starter Merchant Cash Advance, which provides up to 50% of your monthly average credit card sales volume in funding. You could qualify for more capital on better terms after you’ve paid off your initial advance. Businesses that have been around longer than three years could qualify for the Premium Merchant Cash Advance, which has lower costs.

Businesses that are not eligible for Rapid Finance loans:

Because Rapid Finance requires at least one year in business to qualify for its merchant cash advance and longer for its other loan products. New businesses are not eligible for financing. Rapid Finance also requires stable monthly sales. Startups that are not yet generating revenue would not qualify for financing.


How to apply for Rapid Finance financing

After requesting a free quote, a Rapid Finance account executive would contact you to discuss your financing options. Once you’ve made your selection, you would then fill out an online application, which calls for a few documents.

Documents to apply:

  • Government-issued photo ID
  • Voided check from your business checking account
  • Last three statements from your business checking account
  • Last three credit card processing statements for merchant cash advances

Pros/cons

Pros Cons
Multiple financing options. Time in business determines merchant cash advance amount.
Fast approval. Rates are difficult to find online.
Not reliant on credit score. At least one year in business required.

Who is the best fit?

Rapid Finance provides funding for a range of businesses, from medical and dental practices to liquor stores and salons. The company offers financing to business owners with both strong credit and imperfect credit, aiming to serve those who don’t qualify for traditional bank loans or have time-sensitive financial needs. Rapid Finance takes cash flow history and past performance into consideration, in addition to credit score, to give owners a better chance of qualifying for funding. Financing from Rapid Finance can be used for any business expense, including equipment repair, inventory, renovations and emergency expenses.


Fine print

You’ll be charged automatically. To collect debt, Rapid Finance sets up payments through the Automated Clearing House Network. The ACH Network transfers funds from one bank account to another. Rapid Finance automatically collects payments from your business checking account Monday through Friday, excluding bank holidays.

Rapid Finance may take care of existing loans. If you are approved for Rapid Finance financing but are receiving similar funding from another company, Rapid Finance may pay off your existing small business loan or cash advance if it’s in your best interest.


The bottom line: How Rapid Finance stacks up

Rapid Finance provides speedy financing solutions to business owners who may have trouble securing funds from traditional bank lenders. By considering the overall health of a business rather than strictly looking at credit score, Rapid Finance helps more owners access the money they need. The simple online application process and quick turnaround time also ensures owners don’t have to wait for funding.

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