Rapid Finance Business Loan Review

Editor's Rating

Rapid Finance offers a variety of short-term financing options for businesses of all credit scores that generate at least $3,500 in monthly revenues.

Good for

  • Bad- and good-credit applicants
  • Established businesses with at least $50,000 in annual revenue
  • Short-term financing needs

Bad for

  • Borrowers with poor credit seeking a line of credit
  • Borrowers seeking cheap long-term financing for more than 18 months
  • Businesses with under $3,500 in average monthly revenues
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By clicking "See Offers" you'll be directed to our ultimate parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Editor's Rating

Rapid Finance offers a variety of short-term financing options for businesses of all credit scores that generate at least $3,500 in monthly revenues.

Good for

  • Bad- and good-credit applicants
  • Established businesses with at least $50,000 in annual revenue
  • Short-term financing needs

Bad for

  • Borrowers with poor credit seeking a line of credit
  • Borrowers seeking cheap long-term financing for more than 18 months
  • Businesses with under $3,500 in average monthly revenues
  • on LendingTree's secure website
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Customer Rating

    
5.0 out of 5.0 (150 reviews)

Read Reviews on LendingTree

Rapid Finance Reviews: Should You Apply?

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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

AmountTermsTime to funding after approvalCollateral requiredPersonal guarantee required
Small business loan$5,000 to $1 million3 to 60 months1 business dayUCC-1 filingYes
Merchant cash advance$5,000 to $500,000NA1 business dayUCC-1 filingYes

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 businessMin. personal credit scoreMin. annual revenue
2 years550$50,000
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.

ProsCons
  • Lenient credit score requirements.
  • Several products are available, though some are offered by a third party.
  • Fast time to funding.
  • Longer time in business requirements.
  • Products listed online that Rapid Finance does not fund.
  • Unclear rates and overall costs.

FAQs

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.

Melissa is a senior writer for LendingTree, MagnifyMoney and ValuePenguin focused on small business. She previously covered business news for Bizwomen.com and the Dallas Business Journal. Melissa graduated from the University of North Texas with a bachelor's degree in journalism.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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