Advertising Disclosure

Rapid Finance Review 2022: Is the Quick Cash Worth It?

Rapid Finance provides small business loans and merchant cash advances with funding available just one day after approval. Businesses can receive up to $10,000,000.

9.0 / 10
Editorial Score
Ginny Dorn
Personal finance and mortgages specialist
June 20, 2022

Overview

Rapid Finance offers financing options for businesses with at least $5,000 in monthly revenue. It provides small business loans, SBA loans, bridge loans, merchant cash advances, lines of credit, asset-based loans, and commercial real estate loans. Rapid Finance specializes in speedy solutions, with one-business-day disbursement and approvals in as fast as 24 hours.

It has a maximum offering of $10,000,000 for asset-based loans and a maximum of $1,000,000 for small business loans. While other business lenders offer an annual percentage rate, Rapid Finance requires a monthly fee as a means to pay off your loan.

Rapid Finance can work with you even if you have a low credit score, though the amount available and type of funding will vary based on location. Since Rapid Finance specializes in short-term financing, it’s not a good option if you’re looking for long-term financing beyond 18 months.

Rapid Finance is reputable, with an A+ Better Business Bureau rating and predominantly positive customer reviews.

OUR CHOICE 2022
9.0 / 10
Editorial Score
Rapid Finance
Quick view:
Editorial Score
9.0 / 10
Online Services
Applications, Quote management, etc.
10 / 10
Customer Service
5.0 / 10
Available in all states
8.0 / 10
Available loan types
10 / 10
Products
10 / 10

Products & Services

Rapid Finance offers eight products, including small business loans and merchant cash advances, which it provides directly.

The Rapid Finance website also displays SBA loans, bridge loans, asset-based loans, commercial real estate loans, business lines of credit, invoice factoring, and business credit cards. However, these are third-party products – if you choose to apply for one of them, you will eventually be redirected to a different website.

Small Business Loans

Rapid Finance’s small business loans are short-term, with the option to choose repayment terms of 3 months up to 60 months. Payments are automatic and fixed, and you can choose for them to be withdrawn daily, weekly, or monthly.

These loans are for $5,000 to $1,000,000 and provide you with a lump sum. You can use this funding to cover any business expense as you see fit. For example, you might use it for technology, investing in products, or hiring contractors.

This type of loan is unsecured, as it does not require collateral to back it. The lender does not file a UCC financing statement.

You can apply online or on the phone. You’ll need a form of ID, business bank account number and routing number, and the last 3 months of bank statements for your business. Rapid Finance reviews your application and upon approval, provides funding within one business day of approval.

Rapid Finance also offers a small business financing calculator which you can use to determine how much funding your business can qualify for. The calculator requires that you input your credit score, desired amount, and monthly sales.

Apply for Small Business Loan with Rapid Finance

SBA Loans

SBA loans, or Small Business Administration Loans, are administered by the Small Business Administration. These loans are partially guaranteed by the government. Since the government backs these loans, lenders have less risk and are able to offer lower interest rates and longer terms than other business loans.

You can use this type of loan for any business expense, including operation costs or expansion costs. From inventory investments to technology upgrades, SBA loans provide working capital to businesses in need.

SBA loans can be for as little as $500, and go up to $5,500,000. Through Rapid Finance, the terms can range from 1 year to 30 years, and you’ll pay monthly payments from an account on file. You will need to pay an interest charge or fixed fee, among other potential fees.

When applying for an SBA loan, you’ll need a form of ID, business bank account number and routing number, the last 3 months of business bank statements, 2 years of business tax returns, and a schedule of debts. You’ll also need to provide some personal and business information, as well as explain what you plan to do with the loan.

Bridge Loans

Bridge loans are short-term and help to cover unexpected costs while you work on securing permanent financing or a long-term loan. People typically use this type of loan when they’re waiting for a long-term loan but need immediate funds.

Rapid Finance’s bridge loans range from $5,000 to $1,000,000. You’ll choose between daily, weekly, or monthly automatic payments, which will automatically come out of a business bank account kept on file. Terms range from 3 months to 60 months. You’ll need to pay an interest charge or fixed fee, among other potential fees.

When you apply for a bridge loan with Rapid Finance, you’ll need to provide a form of ID to verify your identity, your business bank account and routing number, and the last 3 months of business bank statements. Additionally, you’ll need to fill in some personal and business information. Rapid Finance will also ask what you intend to use the loan for.

Asset-Based Loans

Asset-based loans are a type of secure loan in which the loan is backed by collateral. Since most lenders consider secure loans less risky, you can get lower rates. The more liquid the business asset, the lower the rates. However, as the borrower, you run the risk of losing your asset if you fail to pay back the loan according to the agreed-upon terms and rates.

Loan amounts start at $50,000 and can go up to $10,000,000. The loan amount will vary depending on the value and type of asset. Loan terms range from 6 months to 36 months. You’ll pay a fixed rate and choose from daily, weekly, or monthly payments.

To apply for an asset-based loan, you’ll need to provide a valid form of ID and the last 3 months of business bank statements. Rapid finance will ask you to provide information about your company and yourself, as well as what you’ll use the funds for.

Apply for an Asset-Based Loan with Rapid Finance

Commercial Real Estate Loans

Commercial real estate loans are best for businesses that are purchasing, constructing, or developing a new or current commercial property. These loans are secured by liens on the commercial property. You can use the funds to purchase a new property or cover renovations or refinancing on an existing real estate property.

Rapid Finance offers commercial real estate loans starting at $75,000, going up to $2,000,000. Terms range from 5 years to 20 years. You’ll pay monthly, using an account kept on file. To apply, you’ll need a valid form of ID, 2 years of tax returns or financials, and a schedule of debts.

Rates and Terms

Rapid Finance provides loans for a wide range of funding amounts, from $5,000 to $10,000,000. However, its merchant cash advance offering has a limit of $500,000. Short-term loans range from as little as 3 months and go up to 60 months.

Terms do vary depending on what product you’re interested in – with SBA loans, terms can extend up to 30 years.

Small business loans require fixed rates which are automatically deducted from your business bank account. The deductions can occur on a daily, weekly, or monthly basis, depending on what you choose.

With Rapid Finance’s other main offering, merchant cash advances, there are no fixed rates. This is because your payments come as a percentage of your monthly credit card sales. Merchant cash advances provide you with a lump sum of money. In return, you agree to give a certain percentage of sales to Rapid Finance.

The rate at which you pay that back depends on your receivables, which vary. This type of agreement is also referred to as a split percentage or holdback amount. However, you will receive an estimated completion date, which Rapid Finance calculates based on the business’ performance. This can range from 3 months to 18 months, but is only used as an estimate.

With Rapid Finance, there are no additional fees. You are only responsible for paying the principal and set interest. There are no documentation fees or origination fees.

Application Process and Qualifications

Rapid Finance’s application process is simple and easy. You can apply online through the website, which also supports mobile devices. You can also choose to call Rapid Finance and apply over the phone.

To apply, you’ll need a valid form of ID, business bank account number and routing number for the deposit, and the last 3 months of your business bank statements.

Additionally, you’ll need to provide some personal and business information. This includes:


  • Business name
  • Number of years in business
  • Total monthly sales
  • What you’ll use the money for

If you’re applying for a merchant cash advance, you’ll also need to provide your last 3 credit card processing statements. Rapid Finance does not state how much credit card revenue is necessary to qualify. In addition to credit, Rapid Finance will review your business’ overall performance, business credit history, time in business, revenue, and accounts receivable to determine approval status.

Apply for a Loan with Rapid Finance

Approval Time

Rapid Finance’s approval time is what sets it apart from other small business loan providers – the word “rapid” is in its name for a reason. Approval can happen in as little as 24 hours. Once approved, you receive funds within one business day.

The company’s self-service portal is easy to use, which helps cut down on potential issues and leads to more approvals. This is important to note, as a study by Biz2Credit found that of 30,000 small business loan applications, restaurants and accommodation had the best rate at just 51%. Other industries had an even lower rate, and approval rates vary widely by industry.

In general, lenders can take anywhere from a few days up to a few months for loan approvals. Rapid Finance is able to quickly provide approvals and funding within days. Since the company has mastered a consistent turnaround time of just a few days, it beats out the market average.

Customer Service

You can contact Rapid Finance’s customer service team by phone, email, contact form, mail, or live chat. There are separate departments for general customer service and business advisors, who focus on new sales. Service is available Monday through Friday, 9:00 a.m. to 6:00 p.m. EST.

I contacted Rapid Finance’s general customer service team to ask about their approval timelines, posing as a potential customer interested in a loan. On the first attempt, I filled in the contact form. After 48 hours with no response, I sent my question directly to the customer service email listed on the contact page. I never received a response to either inquiry.

Customer Service

Customer Service

I also tested out the live chat, which provided better results. It starts with a chatbot asking for general information:

Customer Service

Customer Service

After providing some hypothetical answers, the chatbot told me I’d be in contact with a representative within 5 minutes. I waited for 30 minutes with no response. I sent another message and got an immediate response from a live agent, who asked for more information.

Customer Service

Customer Service

Customer Service

I found that while the advisor helping me was thorough and informational, the conversation felt rushed. He did not ask me what I needed help with, and instead immediately jumped into telling me what option was available and pushed for contact information so he could hand me off to a third-party business.

His responses may have been short and to the point, as he knew he couldn’t provide any in-depth information. Rapid Finance may also have a required speed of conversation that the employees must adhere to. In either case, it wasn’t an incredibly friendly conversation.

Overall, Rapid Finance’s customer service over the live chat was helpful and thorough but felt pushy and rushed. I found the customer service over email to be nonexistent, as I never received a response to two different inquiries.

Summary

Overall, Rapid Finance delivers on its promise of quickly-delivered small business funds. The online application process is intuitive, which makes it easy and quick to complete. Approval can occur in as fast as 24 hours, and funding is ready within one business day. You can’t beat the speed and simplicity of Rapid Finance’s process.

The company also offers a good selection of loan types. Most businesses will find a short-term loan option that suits them, with terms ranging from as little as 3 months and up to 60 months. There are no fees on small business loans, you simply pay a fixed rate with automatic set payments.

Rapid Finance isn’t for everyone. Startups without a certain amount of time in business will likely be denied. Businesses in Montana, New Jersey, and Nevada are also unable to take advantage of loans through the company. Additionally, short-term loans and cash advances, both of which Rapid Finance specializes in, are some of the most expensive forms of business financing.

Apart from these downsides, Rapid Finance is known for its excellent customer reviews and satisfaction. Although I didn’t experience stellar customer service, it appears that other people who have actually gone through the process from start to finish received a better experience.

Millions of people across the country have worked with Rapid Finance. It dedicates a team of business advisors who understand your industry to work with you throughout the experience. The simple, streamlined process makes getting a business loan easy. Ultimately, Rapid Finance has proven its ability to deliver short-term financing with speed and ease.

Apply for a Loan with Rapid Finance

FAQ

Is Rapid Finance Legit?

Yes, Rapid Finance is legit and reputable. Millions of people have used its service and it’s earned a Better Business Bureau rating of A+.

Is Rapid Finance a direct lender?

Rapid Finance offers both direct lending and indirect, by matching you with lenders who can better service your needs. This varies depending on loan type and what your business requirements are.

How does Rapid Finance work?

To apply for a loan with Rapid Finance, you simply fill out a form online and provide some basic information. You’ll need a valid form of ID, business bank account number and routing number, and three months of business bank statements. Rapid Finance can approve applications within 24 hours, and you’ll receive funding within one business day of approval.

Does using Rapid Finance affect your credit score?

The preliminary estimate of funds and monthly rates provided by Rapid Finance requires a soft pull of your credit, which won’t affect your credit score. However, when you complete the application and prequalification process, you agree to a hard credit pull. This can affect your credit score and will remain on your credit history for two years. How much the hard pull affects your score depends on your overall credit health.

Ginny Dorn
Written by

Ginny Dorn is a freelance personal finance writer. She specializes in credit card debt, personal loans, and mortgages. She graduated from Western Illinois University with a bachelor's degree in family and consumer sciences.

Pros:
  • Fast approval and funding, often available within one business day.
  • You can complete applications and loan agreements online, through a self-service portal.
  • Borrowers can receive up to $1,000,000 in small business loans.
Cons:
  • Some products require 3 to 6 months in business.
  • Hard credit pulls required can negatively impact your credit history.
  • Cannot offer loans in New Jersey, Montana, or Rhode Island.
Bottom Line

Rapid Finance is a good option for small businesses that need funding fast, especially within a business day or two. It offers a mixed assortment of products to serve most business needs. It can work with lower credit scores, though the type of funding and amount available will depend on where you live.

In comparison with its competitors, Rapid Finance requires a longer time in business. You also won’t know what exact rates you qualify for until you complete the prequalification. However, the company has excellent Better Business Bureau and Trustpilot scores, with lots of reviews from happy customers.