Rapid Finance Business Loan Review

Pros Explained

• Large loan amounts: Rapid Finance offers loans up to $1 million, $2 million, and even $10 million, depending on the loan type.
• Fast funding: Once you’re approved for your Rapid Finance business loan, you can expect to have the money deposited into your account within just hours.
• Flexible credit requirements: While Rapid Finance doesn’t disclose its requirements, plenty of online sources say it's possible to qualify for a loan with poor or fair credit.

Cons Explained

• Lack of transparency: Rapid Finance provides little information on its website about its interest rates, fees, eligibility requirements, and other loan features.
• Minimum loan amount of $5,000: Rapid Finance’s minimum loan or line of credit amount is $5,000, which could be a problem for businesses that need smaller loans.
• Fixed fees: Some of Rapid Finance’s loans and lines of credit have fixed fees and interest charges, meaning you won’t necessarily save money by paying them off early.
• Strict repayment plans: Depending on your loan type, you may be subject to a loan repayment term as short as three months and payments as frequently as daily.

Types of Business Loans Offered by Rapid Finance

One of the greatest advantages of Rapid Finance is the many types of business loans and financing available. When you want to apply for a loan, you’ll have seven different options to choose from:

• Small business loan: This type of loan allows you to borrow anywhere from $5,001 to $1 million for business expansion, large purchases, and other needs. Repayment terms are from three months to five years with daily, weekly, or monthly payments.
• Line of credit: Rapid Finance’s business lines of credit allows you to access revolving credit when you need it. Lines of credit are available for anywhere from $5,001 to $250,000, with repayment from three to 18 months, resetting each time you draw capital.
• Merchant cash advance: When you take out a merchant cash advance, you get access to the capital you need based on your expected credit card transaction or other receivables revenue. Rapid Finance offers these advances in amounts ranging from $5,000 to $500,000.
• Bridge loan: A bridge loan is a type of short-term financing designed to bridge the gap before another form of financing is available. You can borrow between $5,001 and $1 million and pay it off over terms ranging from three months to five years.
• Invoice factoring: This type of financing allows you to sell your invoices at a discounted rate for working capital for your business. You can borrow between $20,000 and $10 million on outstanding 30-, 60-, or 90-day invoices.
• Asset-based loan: When you borrow an asset-based loan, you put your business assets up as collateral to cover short-term financial needs. You can borrow anywhere from $50,000 to $10 million and pay it off over six to 36 months.
• Commercial real estate loan: This type of loan is ideal for a business planning to buy or develop a new or existing property. Loans are available in amounts ranging from $75,000 to $2 million with repayment terms from five to 20 years.

Time to Receive Funds

The speed at which you can get your loan or line of credit funds may depend on the type of financing you choose. But generally speaking, Rapid Finance promises fast funding of loans. For small business term loans, for example, you can have the money in your bank account within just a few hours of your loan being approved.

Borrower Requirements

Rapid Finance doesn’t have much transparency on its website regarding its borrower requirements. Lenders generally set requirements for the company’s annual revenue, the number of years in business, and the owner’s personal FICO score. 

While Rapid Finance doesn’t disclose its eligibility requirements on its website, it likely still has such requirements in place. To find out if you qualify for a Rapid Finance loan or line of credit, you’ll have to complete the pre-qualification form on the company’s page.

Rapid Finance Business Loan Features

• Easy online application: Rapid Finance offers an easy online application that you can complete in a matter of minutes.
• Many loan types: You can choose from more than a half dozen types of loans to find the one that best fits your business’s needs.
• Pre-qualification: Getting a quote from Rapid Finance won’t hurt your credit. You can get pre-qualified with just a soft credit check and some basic information.
• Team of business advisors: As a Rapid Finance applicant or customer, you’ll have access to a dedicated team of business advisors to help you make decisions about your financing.

Can You Refinance a Business Loan With Rapid Finance?

Rapid Finance offers many different types of business loans, but refinance loans aren’t included in that list. That being said, you may still have some options. If you have a business loan with another lender that you want to refinance, you could take out a loan with Rapid Finance to pay it off. Similarly, you could take out a business loan with a different lender as a way of refinancing a Rapid Finance loan.

Customer Service

Rapid Finance offers several different ways for current and prospective customers to contact the company. You can fill out a contact form on the company's website, mail a letter, or call or email one of the departments listed in the table below:

Customer Satisfaction

Rapid Finance has overwhelmingly positive reviews online. The company has more than 1,800 reviews on Trustpilot, and 95% of those are five-star ratings, giving the company an average rating of 4.9 out of 5 stars.

Positive reviews point to the easy application process, fast funding, and excellent customer service. Many of the reviewers worked with dedicated business advisors who helped them through the process.

Of those who left one or two-star reviews—which was less than 3% of reviewers—many complained about difficulty qualifying for a loan or high interest rates.

Applying for a Rapid Finance Business Loan

Applying for a Rapid Finance business loan is a quick process, and you’ll only need three things: a valid form of identification, your business bank account and routing numbers, and three months of business bank statements.

The Rapid Finance application process takes just five steps. Here’s how to apply for your loan:

1. Provide basic information. You’ll need to share your name and your business’s name, as well as your contact information. You’ll also share the reason for the loan.
2. Share your business information. In this section of the application, you’ll share your business structure, how many years you’ve been in business, and your industry. You’ll also provide your monthly revenue and how many employees you have.
3. Provide personal information. Next, Rapid Finance will ask for your personal credit score to confirm your eligibility.
4. Get your quote. Once you’ve provided all of the information, Rapid Finance shows you how much you can expect to qualify for and what loan term you’re eligible for.
5. Get pre-qualified. Finally, if you’re happy with your quote, you can provide the remaining personal information needed to officially pre-qualify for the loan.

Alternative Business Loan Lenders

Final Verdict

Rapid Finance has some major advantages, such as the number of loan types of available, the large size of the loans, and fast funding. Because of that, we think Rapid Finance could be a great option for all types of borrowers.

However, there are some downsides to consider. First, the company doesn’t have much transparency when it comes to eligibility requirements, interest rates, and fees. Luckily, you can pre-qualify for a loan to ensure you’re eligible before having a hard check on your credit report.

Finally, while the company doesn’t disclose its interest rates on its website, a number of online reviews—both positive and negative—spoke of the company’s high interest rates and costly fees. For that reason, it may not be the best choice for borrowers who can qualify for a better interest rate elsewhere.

Is Rapid Finance Legitimate?

Yes, Rapid Finance is a legitimate business lender. The company has excellent online reviews and an A+ rating from the Better Business Bureau. And according to Rapid Finance, it has provided more than $3 billion in business financing nationwide.

Does Rapid Finance Offer Startup Business Loans?

Rapid Finance doesn’t disclose its eligibility requirements on its website, so it’s difficult to know for sure whether startup businesses and other new companies would qualify. However, thanks to the option to pre-qualify for a loan, you can find out if your business is eligible without a hard credit check.

What Credit Score Do You Need for Rapid Finance?

Rapid Finance doesn’t disclose the credit score someone needs to qualify for a loan. Some sources suggest you can qualify with any credit range. However, it’s a general rule of thumb across all lenders that the better your credit score, the better your chances of qualifying for a loan.

Does Rapid Finance Report to Credit Bureaus?

Rapid Finance doesn’t disclose on its website whether it reports your loan activity to credit bureaus. Business loans are generally reported to business credit reports, not personal ones. However, your personal credit may be used if you have a sole proprietorship. Additionally, if you fail to make your loan payments, it may be reported to the personal credit bureaus.