Rapid Finance Reviews: Should You Apply?
We recommend that borrowers explore other forms of financing first before resorting to short-term loans and cash advances, as these are among the most expensive forms of financing for businesses. Nevertheless, Rapid Finance boasts largely positive customer service reviews with the Better Business Bureau (BBB) with four complaints based on 147 reviews as of publication.
What Rapid Finance offers
Time to funding after approval
Personal guarantee required
|Small business loan||$5,000 to $1 million||3 to 60 months||1 business day||UCC-1 filing||Yes|
|Merchant cash advance||$5,000 to $500,000||NA||1 business day||UCC-1 filing||Yes|
Small business loan
Rapid Finance’s short-term small business loan is available between $5,000 and $1 million. Repayment terms span three to 60 months and Rapid Finance collects automatic daily, weekly or monthly payments.
You could use the lump sum of funding to cover a variety of business expenses, such as upgrading technology, hiring employees, expanding your business or consolidating debt.
Merchant cash advance
A Rapid Finance merchant cash advance is a form of financing based on your future credit card sales and other receivables. Rapid Finance would give you a sum of money in exchange for a portion of your future sales, deducting a set percentage of your credit card transactions until the advance is paid back.
Merchant cash advances are available from $5,000 to $500,000. There are no specified repayment terms, as repayment would be based on the speed of your daily sales. Consider the seasonality of your sales volume and your percentage of credit card sales before taking on a merchant cash advance.
For health care businesses, Rapid Finance offers a similar product, a health care cash advance, that provides funding in exchange for future health insurance receivables. Rapid Finance would collect payment whenever insurance providers pay the business.
Other products: Rapid Finance lists additional financing solutions on its website, but only markets those products on behalf of other companies. The lender does not directly provide the following options that appear online:
- SBA loans
- Bridge loans
- Business lines of credit
- Invoice factoring
- Asset-based loans
- Commercial real estate loans
- Business credit cards
Who is eligible for funding from Rapid Finance?
Business owners must meet Rapid Finance’s minimum criteria to be eligible for funding.
Time in business
Min. personal credit score
Min. annual revenue
You may be eligible for a merchant cash advance with a credit score as low as 500. However, the type of funding and amount you could get would ultimately depend on your location. Rapid Finance’s products and amounts vary by state. You also may have to meet minimum sales requirements though the company does not specify what those thresholds might be.
Rapid Finance application process
To apply for a small business loan, you’d need to submit:
- Government-issued ID
- Voided check from your business checking account
- Three most recent bank account statements
An application for a merchant cash advance requires the same information, in addition to your last three credit card processing statements.
You could submit an application online or call Rapid Finance at 800-631-3370. Once approved, you could get funding in one business day.
How to prequalify for funding with Rapid Finance
To prequalify online, you will need to provide your business’s name, address and contact information. You will be asked to estimate your business’s monthly sales including the percentage of credit card sales (if you accept cards), number of employees, years in business and entity type as well as provide the ZIP code in which your business operates. Be prepared to provide an estimate of your personal credit score and answer the following questions:
- How do you intend to use the business capital?
- How much funding do you need?
Once you’ve submitted all the requested information, you will be provided with a preliminary estimate of your funding amount and term. At this point, Rapid Finance will conduct a soft pull of your credit, which should not affect your credit score.
Businesses that are not eligible
Based on our Rapid Finance reviews, startups would not be eligible for financing because of the time in business and annual revenue requirements.
Rapid Finance's business term loans are also not available to borrowers in New Jersey, Montana, Nevada, Rhode Island. Businesses in those states will be limited to Rapid Finance's cash advance offerings.
Rapid Finance: Pros and cons
Consider these potential positive and negative aspects of Rapid Finance before applying for funding.
Does Rapid Finance require a personal guarantee? Yes, borrowers would have to provide a personal guarantee to secure a small business loan or a merchant cash advance. A personal guarantee would make you personally liable to repay debt if your business defaults. It’s a common requirement for alternative business financing, but keep in mind that your personal money would be on the line.
Can I prequalify for financing? Yes, applicants can prequalify. When you first submit an online application, Rapid Finance would ask for the documents discussed earlier to provide an estimated amount that you could borrow. From there, you may have to submit more personal information such as your Social Security number. If you choose to complete the prequalification process, you would then need to agree to a hard credit pull before moving on to a formal application to receive funding.
Does Rapid Finance offer a line of credit? No, Rapid Finance does not directly provide a business line of credit. Instead, Rapid Finance advertises lines of credit, as well as other products like invoice factoring and asset-based loans, which are ultimately funded through a third-party provider.