Rapid Finance Loan: Legit or Scam?

Rapid Finance gives different loans to small businesses quickly.

They focus on fast financing, but their rates and fees might be high.

People like them online, but their loans may not be right for every business.

Discover if Rapid Loan is a legitimate option for your financial needs.

Learn about their services, reputation, and customer experiences to make an informed decision.

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Rapid Finance Loan

What is Rapid Finance?

Rapid Finance provides quick loans to small businesses.

It used to be called Rapid Advance and offered Merchant Cash Advances.

Since 2005, it has become well-known in alternative business financing, giving over $2 billion in funding.

Rapid Finance offers direct loans and partners with others for more options, helping borrowers find the right loan for them.

What Loan Products Does Rapid Finance Offer?

Rapid Finance offers various loans for small businesses:

  1. Small Business Loans: You get a lump sum and pay it back with interest and fees in fixed monthly payments. The loan starts at $5000 and goes up to $1 million, with a repayment period of 3-60 months. The interest rates and fees are not specified on their website.
  2. Merchant Cash Advance: You get money upfront based on your future credit card sales. You can get between $5,000 and $500,000. You pay back a fixed percentage of your daily credit card sales.
  3. Line of Credit: It works like a credit card. You get a limit of $5,001 to $250,000. When you pay back what you borrowed, your limit goes back up. You only pay for what you use.
  4. Bridge Loans: Short-term loans for urgent needs, starting at $5,001 up to $1 million, with terms of 3 months to 5 years.
  5. SBA Loan: Loans from the Small Business Administration, ranging from $500 to $5.5 million, with terms of 1 to 30 years. The application process takes a long time.
  6. Invoice Factoring: You sell your unpaid invoices at a discount for immediate cash, ranging from $20,000 to $10 million.
  7. Asset-Based Loans: You use your business assets as collateral for loans ranging from $50,000 to $10 million, with terms of 6-36 months.
  8. Commercial Real Estate Loans: Loans for buying, renovating, or refinancing property, ranging from $75,000 to $2 million, with terms of 5-20 years.

What are Rapid Finance’s Qualifications?

Rapid Finance doesn’t list specific requirements for their loans on their website because each loan has different needs. Here’s a general overview:

  • Credit Score: They don’t say the minimum credit score needed. Some reviews suggest they accept scores as low as 550, but this may vary. SBA and larger loans likely require a score closer to 650-670.
  • Annual Revenue: There’s no minimum revenue requirement listed, but it depends on the loan type and amount. Rapid Finance checks your business to see if you can repay the loan.
  • Years in Business: They don’t give loans to new businesses. Most products need at least 2 years in business, but you have to apply to know for sure.
  • Required Documentation: You’ll need ID and basic business info, like bank statements. For invoice factoring, you might only need ID and invoices. SBA loans need more, like tax returns and financial statements.

How to Apply to Rapid Finance:

Like most online lenders, Rapid Finance begins with a prequalification questionnaire to speed up the loan approval and funding process.

  1. Apply and Connect Your Business Bank Account: Apply through the United Capital Source online application. The one-page form asks for basic business information. Provide business bank statements from the last three months. If approved, funds are deposited into your business account.
  2. Review: Rapid Finance reviews your application. An advisor may contact you for more information.
  3. Get Funded: Approved funds are sent to your business bank account. Some loans are funded on the same day, while others take 1-3 business days. SBA loans may take several weeks.

Rapid Finance Pros & Cons

Pros:

  • Easy to apply and get money fast.
  • Different types of loans to choose from.
  • People like them online and they have good customer service.
  • Their rates are good compared to other short-term lenders.

Cons:

  • Not clear about fees and interest rates.
  • They don’t tell you what you need to qualify.
  • Costs more than long-term lenders.

Conclusion

In summary, Rapid Finance provides quick loans to small businesses, but their rates and fees might be high.
People like them online, but their loans may not be right for every business.
Consider if Rapid Finance is a good option for you by learning about their services, reputation, and customer experiences.

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