Rapid Finance Reviews – Rates, Payback Terms, Pros And Cons

Rapid Finance is one of the leading lenders of small and medium-sized businesses. Among the main loan programs offered by the lending institute are merchant cash advance (MCA), business line of credit, asset-based loan, bridge loan, SBA loan, invoice factoring, and commercial real estate loan. Rapid Finance was established in 2005. Over 2 billion dollars of loans have now been funded by the lending company.

Let’s take a look at Rapid Finance today. In this Rapid Finance review, we’ll discuss the pros and cons, interest rates, payback terms, fees, and whether it’s legit. We will also try to give you an idea of some of Rapid Finance’s biggest competitors. Rapid Finance’s in-depth review will help you to decide whether to work with them or not.

Pros of Rapid Finance

Rapid has some upsides and downsides like any other online lender. Let’s begin with the financial institute’s upsides.

1.Multiple Loan Programs

We have reviewed more than 8 to 10 online lenders who offer business loans to small businesses. We found that most of them had only MCAs and working capital loans. However, Rapid Finance offers a variety of financing options. There are eight loan programs available. We loved it, it’s cool.

2.Maximum Amount of Loan

Small and mid-size businesses have low revenue and don’t have a lot of deposits into their business checking accounts. In addition, they don’t have a good or excellent FICO score. So, they cannot apply for a business loan from a traditional bank. In addition, they have to rely on private lenders. Rapid Fiance provides the maximum loan amount.

3.Interest Rates Are Relatively Low

Most private lenders do not offer merchants multiple financing options, as you can see. As a result, small and mid-size business owners are forced to take this high-interest loan. Comparing Rapid Finance with other online lenders, the interest rate is not bad at all.

4.Excellent Customer Support

A financial company’s customer service is one of the most important aspects of the company. Customer service at the lending company is excellent. Because of this, they have a lot of repeat customers. Rapid has many customers who have been working with them for a number of years.

5.Minimum Deposit

There are very few loan providers who require 5000 monthly income. We noted in our last review that Kapitus Funding requires a minimum deposit of 25 thousand dollars per month. If your monthly gross sales are at least 5,000, you can apply for a loan. However, Bitty Advance also provides loans against 5 thousand dollars of monthly revenue.

6.Fast Approval

All funding processes are handled in-house by a private lender. If you apply for a business loan with Rapid Finance, you will be funded within 24 to 72 hours. It is a type of same-day business financing.

7.Bad Credit Doesn’t Matter

In our prior review, we discussed the importance of personal credit scores in terms of business loans. Online lenders usually require personal credit scores of 600+. Rapid Finance, however, requires a low credit score. If you have a poor credit score, you can still qualify for a business loan.

8.Easy Application Process

The entire lending process is done online with online lenders. Small business loans are especially important. Getting a business loan from Rapid Finance is as simple as applying online and getting funded. You don’t have to go to their office or submit paperwork in person.

9.Minimal Paperwork Requires

If you have ever worked for a traditional bank. To obtain a business loan from the traditional banks, you will need to submit a lot of paperwork. 

When you work with an online lender, you don’t have to submit a lot of documents. It also saves you time and is hassle-free.

10.Early Payment Discount

A certain financial company offers early payment discounts. If you pay back early, you can get a 2%-15% discount on your cost of capital. Ondeck also offers a discount for early payments.

Cons of Rapid Finance

We are not saying that Rapid Finance is the best lender. We discovered some negative aspects of this financial company while writing this review about this small business loan provider. I will now share the negative aspects of the financial institution. It will also allow you to compare other financial companies and make the right decision.

1.Restricted Industries

There are dozens of business categories. Rapid Finance does not finance many restricted industries. These include law firms, travel agencies, car services, flea markets, casinos, adult entertainment, non-profits, multilevel marketing, marijuana, and collection agencies.

2.Expensive

If you are looking for cheap money for your business then you should skip Rapid Finance and opt for a mortgage loan or traditional bank loan. It is a little more expensive than a regular bank loan.

3.No early payment discount

Many merchant cash advance and business loan providers offer early payment discounts. However, there is no option here.

Rapid Finance Requirements

It is very easy to qualify for funding, and it is better than most competitors. Rapid Finance requires the following requirements in order to approve a business loan:

  • (for MCA) 3 months in business
  • (Short-term loan) 2 years in business
  • $5000 to $12000 in monthly revenue
  • Score of 500 or more on personal credit report

Note: If you are in a restricted industry (mentioned above), you will not qualify for their loan program.

Is Rapid Finance Legit?

Rapid Finance is 100% legitimate, not a scam. The lending institution offers safe and secure financing. Rapid was founded in 2005 in Bethesda, Maryland, USA.

Rapid Finance Alternatives or Competitors

Rapid Finance competitors include GreenBox Capital, Credibly, Kapitus, Fundbox, OneDeck, Kabbage, Funding Circle, and BlueVine.

Rapid Finance Interest Rates, Fees, Payback Terms

A regular bank’s interest rate is a little higher than Rapid Fiance’s. Interest rates range from 6% to 35% and origination fees range from 0% to 2.5%. The payback period for a small business loan is between 3 months and 60 months. The payback term for Real Estate and SBA loans can range from 1 year to 30 years.

Rapid Finance Loan Application Process

The application process is simple and straightforward. All funding processes are done online and in-house, so you don’t need to visit their office to apply. You can apply for a loan from Rapid Finance by visiting their official website and clicking the apply now button.

  • Click On Get Quote
  • After entering some basic information (business name, name, phone number, and email), click Continue.
  • Select the purpose of the funding and click continue.
  • Provide some basic information about your business.
  • Enter the revenue information for your business and click on continue
  • The maximum loan amount you could be approved for will be displayed. Click on continue after selecting the amount you need.
  • Input your address and other personal information, then click on agree and continue.
  • A pre-qualified loan amount will be displayed.

When you are pre-qualified, you will be required to provide some paperwork, including bank statements, one page of the application, a voided check, a driving license, and proof of ownership. Lastly, you will be funded within 24 hours after bank verification.

If you would like to change the loan amount, you can negotiate the interest rate with their representative. It could save some money.

Customer Reviews

Rapid Finance has a lot of positive and negative reviews on customer review websites.

  • User reviews on Trustpilot: 4.8 out of 5
  • Reviews on Google: 9 out of 10
  • User reviews for Best Company: 4.7 out of 5

Our Review On Rapid Finance

Rapid Finance is an affordable and fast financing solution for small businesses, according to our review. We have already reviewed almost a dozen small business lenders online. In comparison with some of the competitors, Rapid Finance’s rate and terms, as well as its financing options are good.

Conclusion

Fast loans are generally more expensive than regular bank loans. However, the company offers multiple financing options, an online application process, and affordable interest rates. You can work with Rapid Finance if you need funding for your business within a short period of time.

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