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Rapid Finance Review 2021

Rapid Finance is one of the most established players in the alternative lending market. It offers seven types of small business loans, high borrowing limits, and is welcoming to those with bad credit

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    Financially Reviewed by Gordon Scott

    Rapid Finance has been providing small business loans since 2005, making it one of the oldest, and most trusted, alternative lenders on the market. Like many of its competitors, the service is focused on providing fast access to funding and ensuring that borrowers have as many options open to them as possible. 

    What Is Rapid Finance?

    With seven different loan types available here you’re really spoiled for choice. You may want to opt for a short-term injection of cash via invoice factoring, or you could take out a longer-term business loan. However, it can be a little difficult to find out detailed rates and terms before you apply as Rapid Finance assesses each application on its own merits, meaning there can be a lot of variation between offers. 

    That being said, the process is quick; those with bad credit are welcome and approval rates are higher than you’ll find at other lenders.

    Advantages and Disadvantages of a Rapid Finance Business Loan

    Rapid Finance Advantages

    • Excellent variety of loans - With seven different loan types on offer you’ll be able to find funding to fit niche needs. Including fast access to cash, long term options, and secured loans
    • Efficient application process - Applying online or over the phone is incredibly easy and everything is made clear to you at each stage. Plus, you may receive funding on the same day in some cases
    • Great customer service - Rapid Finance service agents will be happy to answer any detailed questions you might have and are on hand to make sure you choose the right loan product for your business
    • Generous lending limits - Depending on which loan you choose, you could get your hands on an impressive $10 million in funding. Even those loans with lower limits are still generally higher than the competition
    • High approval rates - Since Rapid Finance welcomes applications from most borrowers, you’ll find the approval rates are a little higher than at other lenders

    Rapid Finance Disadvantages

    • Lack of information pre-application - It’s very difficult to find out any information on rates, terms and fees before you apply. This can make it difficult for first-time borrowers to choose the right loan and set an effective budget
    • No funding for startups - While it’s difficult to find qualifying information, Rapid Finance does note that you’ll need to provide three months of business bank statements to be eligible. This means startups won’t be able to apply

    Rapid Finance Loan Features

    Each loan type is designed to cater to a specific small business need and the Rapid Finance customer service team can guide you through which option is best for you if you’re not sure where to start. 

    Generally, loans come with a fixed percentage fee rather than interest rates, and repayments can be flexible, being daily, weekly, or monthly. Plus, lending limits are very generous here, topping out at $1 million for most options, and rising to $10 million if you have enough assets to secure a loan. 

    Before you apply, you should know that the lender is unable to offer services to businesses in New Jersey, Rhode Island, Montana, Vermont, South Dakota, and Nevada. 

    Small Business Loan

    A Rapid Finance small business loan is the platform’s most popular choice. All payments are fixed, the terms are generous and you can borrow up to $1 million.

    Loan type

    Small business loans

    Term length

    3 - 60 months

    Repayment period

    Daily, weekly or monthly

    APR range

    Not disclosed

    Min - Max amount

    Up to $1 million

    Merchant Cash Advance

    This type of Rapid Finance funding is designed for borrowers that need access to fast cash. You’ll receive a lump sum of money on the promise of a percentage of your future credit and debit card sales. While this type of loan is easy to arrange, it can come with high interest rates. 

    Loan type

    Merchant cash advance

    Term length

    Not disclosed

    Repayment period

    Daily

    APR range

    Not disclosed

    Min - Max amount

    Up to $500,000

    Line of Credit

    This is probably the most flexible type of small business loan you can find, and it works a bit like a credit card. You’ll be given a designated borrowing limit, up to $250,000, which you can draw from whenever you’d like. You don’t need to withdraw the full amount either and can borrow just what you need. 

    Loan type

    Line of Credit

    Term length

    3 - 18 months

    Repayment period

    Weekly

    APR range

    Not disclosed

    Min - Max amount

    $5,000 - $250,000

    Bridge Loan

    This type of funding is intended to cover short-term emergency expenses and can usually be arranged quite quickly. They work very much like term loans but have more lenient eligibility requirements and higher interest rates. 

    Loan type

    Bridge loan

    Term length

    3 - 60 months

    Repayment period

    Usually monthly

    APR range

    Not disclosed

    Min - Max amount

    $1 million

    SBA Loan

    An SBA, or small business administration loan, is lending that’s backed up by the federal government. This makes it a much less risky proposition for the lender, making it much more likely that you’ll be accepted. However, expect lengthy application times and a long wait for funding. 

    Loan type

    SBA loan

    Term length

    1 - 30 years

    Repayment period

    Usually monthly

    APR range

    Not disclosed

    Min - Max amount

    $500 - $5.5 million

    Invoice Factoring

    If you’re struggling with cash flow issues you can choose to borrow against your unpaid invoices in order to access cash quickly. Rapid Finance has some pretty generous terms too, allowing you to borrow against 100% of your invoices up to $10 million. 

    Loan type

    Invoice factoring

    Term length

    30, 60 or 90-day invoice borrowing allowed

    Repayment period

    When you receive payment from your customer

    APR range

    Not disclosed

    Min - Max amount

    $20,000 - $10 million

    Asset-Based Loan

    This is a type of secured lending where you get to choose a business asset to put up as collateral. This can be inventory, equipment, real estate, or cash in the bank among others. You’ll receive lower rates but need to take care you can keep up with payments, otherwise, your asset will be seized. 

    Loan type

    Invoice factoring

    Term length

    6 - 36 months

    Repayment period

    Daily, weekly or monthly

    APR range

    Not disclosed

    Min - Max amount

    $50,000 - $10 million

    Rapid Finance Interest Rates and Fees

    Rapid Finance discloses very little information on rates and fees before you apply. As every customer is assessed individually the platform can’t guarantee a set range of rates without first reviewing your details. 

    That being said, we can get an idea of some of the rates from online customer reviews. Generally, the lender will apply a factor rate to many loan products which can range between 1.11 to 1.25,  although you may see lower rates than this if you have excellent credit. 

    Rapid Finance states that fees may be applied in some cases, but doesn’t provide specific details. You should keep an eye out for origination fees and late payment charges when you read your loan agreement, and be aware that several loan types will have administrative costs. 

    If you’d like to know more, we’d recommend getting in touch directly with the Rapid Finance customer service team. 

    How to Qualify for a Rapid Finance Loan?

    Much like rates and terms information, Rapid Finance keeps its qualification criteria confidential. The platform states that you’ll be assessed based on your time in business, monthly income, and credit score, but doesn’t say what the minimum criteria are, or how much weighting each category is given. 

    This means that the lender welcomes applications from all applicants, and each will be assessed on its own merits. There’s no hard pull on your credit rating until you accept an initial offer, so there’s no risk to you for submitting an application and seeing what you can get. 

    The Rapid Finance Application Process?

    You can apply over the phone or via the online form. Either way, you aren’t expected to provide a lot of information upfront, just some basic personal and business details. This shouldn’t take more than 10 minutes to complete, after which, you’ll be offered a number of quotes. You could receive offers for a number of different loan types, so if you’re not sure which one might be best for you we’d recommend applying over the phone, and a service agent will be able to talk you through the options. 

    Alternatively, if you’re happy with an offer, you can accept it online and Rapid Finance will start the underwriting process. In the majority of cases, you’ll receive a formal approval notification within six hours, and funding within two days. However, SBA loans can take much longer to arrange, often several weeks to months, and the more complex your case is, the more documentation you’ll need to provide. 

    In terms of documentation, when applying you’ll be expected to provide:

    • Your profit and loss statement
    • Your balance sheet
    • Your business tax ID
    • Three months of business bank statements
    • A copy of your driver’s license
    • Your most recent business tax return

    In addition, you’ll need to own at least 50% of your business personally to qualify.

    How Does Rapid Finance Determine the Loan Amount?

    Rapid Finance doesn’t disclose its methodology used to determine your loan amount. Your credit score, annual income and length of time in business will all be critical factors in determining how much you can borrow, but each case will be considered individually. 

    If you have bad credit or don’t have a lot of business experience, it might be worth talking to a service agent to discuss other factors that could help your application. 

    In keeping with strong customer service and satisfied users, you’ll find an interesting ‘client of the month section on the Rapid Finance website. Here you can learn about some of the best success stories from the platform’s borrowers directly. 

    Customer Support

    The Rapid Finance customer service helpline is open between 9 AM and 6 PM, EST Monday through Friday, and is the best way to get in touch if you’ve got any questions. Service agents are helpful, attentive and can easily take you through the application process. 

    If you prefer, there’s an email address you can use or you can reach out via Facebook or LinkedIn. The platform is regularly praised for its friendly customer service and helpful staff. 

    In addition, you can access the business resources section of the website where you’ll find useful blogs and a number of small business guides to get you started. 

    Rapid Finance Loan Reviews

    A quick look at Trustpilot will tell you how just how good Rapid Finance is. With a rating of 4.9 stars out of 5 from more than 1,300 reviews, you can rest assured knowing your loan is in safe hands. In particular, customers love the personal service they receive here and often praise individual service agents by name. Others are impressed by just how easy it is to apply, and how quickly they were able to receive funding. 

    In certain instances, customers have noted that they had trouble receiving funding, long waits on getting responses to queries and some final offers having higher interest rates than those shown at the application stage. However, these criticisms are rare. 

    Positive Reviews

    Negative Reviews

    Excellent customer service

    Interest rates higher on final offer

    Simple application process

    Long wait times on email queries

    Fast funding times

    Issues receiving funding

    Final Thoughts

    Rapid Finance is an excellent first choice for borrowers. The process is fast, customer service is great and you’ll find a huge range of flexible funding types to choose from. It doesn’t cost anything to apply, and your credit score won’t be affected by taking a look.