Rapid Finance Review 2021 – businessnewsdaily.com
|Variety of loan types||2.0|
The interest rates on Rapid Finance loan products vary based on creditworthiness. The higher your score, the less interest you will pay. Alternative lenders tend to charge more interest than their bank counterparts, but are also willing to lend to borrowers that banks may not consider.
Currently, the APR on a small business loan from an alternative lender ranges from 2.5% to high double digits. Depending on your creditworthiness, an alternative lender loan may not be worthwhile. However, Rapid Finance does not charge any origination or documentation fees. They only pay interest on small business loans, but some of its loan products may impose fees in excess of the interest. Make sure you do your research before proceeding with this lender.
Tip: Even if you are approved for a loan, keep the terms and conditions in mind. Your credit score determines your borrowing costs. Sometimes same day funding isn’t worth it if your interest rate is too high.
Applying for a loan
Applying for a loan with Rapid Finance begins by completing a simple online application. Rapid Finance asks you a number of questions, such as: For example, your fiscal years, annual sales, credit card percentage, and creditworthiness. You will then find out which maximum you can pre-qualify for. You choose the amount and provide additional information (including your social security number). Rapid Finance will then process your loan. With the Rapid Finance mobile app, business owners can easily apply for a loan on the go without being in the office. This does not apply to all of the lenders we have reviewed. For example, Crest Capital, which also provides same-day funding, doesn’t have an option for mobile applications.
This lender works with borrowers with incomplete credit and doesn’t require a lot of documentation. You need a commercial bank account, three months commercial bank statement and ID for the merchant’s cash advances. For the short term loans, you must have been in business for two to four years.
Loan types and terms
Rapid Finance offers small business finance from $ 5,000 to $ 10 million. You can repay the loans within three to 60 months.
This lender offers a variety of financing options including term loans, lines of credit, bridging loans, SBA loans, invoice factoring, merchant cash advances, asset-based loans, commercial real estate loans, and healthcare cash advances. You can use the loans for any business purpose including inventory and payroll.
The small business loans are charged a fixed rate and you must make daily, weekly, or monthly payments. The money will be automatically withdrawn from your bank account. This is to ensure that you don’t miss any payments that could negatively affect your creditworthiness. You can borrow $ 5,000 to $ 1 million with repayment plans of three to 60 months.
Rapid Finance calculates a percentage of your monthly credit card sales using the merchant cash advance, often referred to as a split percentage or holdback amount. You can borrow $ 5,000 to $ 250,000 and repay it within three to 18 months. You can choose to make the payments daily, weekly or monthly. This is another thing we like about Rapid Finance. Other lenders, including Fundbox, require weekly payments.
Borrowing money is complicated. There are so many options in terms of funding type, amount, and payback times. Rapid Finance will help you find the best loan with its online calculator, regularly updated blog and customer service.
With the online loan calculator, fill in your creditworthiness and monthly sales and Rapid Finance will show you what you can qualify for. This will help you make a decision. The blog and company guides provide actionable advice to help your business borrow money and grow. In case you have any questions, Rapid Finance offers customer service by phone, email and live chat.
Fast finance functions
|Fast financing||Rapid Finance can fund small business loans within hours of their approval.|
|Simple application||This lender has a quick and easy online application that makes the process painless.|
|No collateral||Rapid Finance does not require any collateral for a loan.|
Fast finance isn’t the only reason Rapid Finance is one of our top recommendations, but it’s a big one. All loan products offer same-day financing, which is pretty impressive for a lender with this breadth of products. Noble Funding also offers many funding options, but cannot fund all loans on the same day as approval.
Rapid Finance will receive money in your bank account within a few hours of approval and will not charge you an arm or a leg for it. This is important for business owners who need cash fast. Far too often they are stuck in loans that get them the money quickly but charge exorbitant interest rates and / or fees.
Fast funding means nothing if it takes forever to fill out the application. This is not the case with Rapid Finance. It has an online and mobile application that is intuitive and quick to complete. You only need a three-month bank statement and ID card to apply. This is welcome news for small business owners who are pressed for time.
When you borrow money from Rapid Finance, you don’t have to worry about offering collateral like real estate or company vehicles. Most loans are unsecured which is another reason we like this lender. This gives you one less thing to worry about when borrowing.
Did you know already? Some alternative lenders require you to fill out a long application, even if they have quick funding times. That makes quick funding slow funding when you have to spend hours applying.
Rapid Finance borrowers can contact the lender’s customer support team Monday through Friday from 9 a.m. to 6 p.m. ET or chat with the company using the live support feature on their website.
Another advantage of Rapid Finance is the customer portal. You can log into the portal to view your credits and track your payments.
Rapid Finance is accredited with the Better Business Bureau, where it has an A + rating and 4.78 out of 5 stars from customers. It also has solid results on various other review websites.
Rapid Finance has been lending to small businesses for years, but not every business owner can qualify for a loan from this lender. If you are a startup you may get banned from their loans as Rapid Finance requires you to be in business for at least three months in order to receive the merchant’s cash advances. For the short term loans, you need two to four years in business.
Rapid Finance is ready to work with borrowers who have questionable credit scores. This increases the number of small businesses that can be approved for a loan, but it can be too costly. Ultimately, your creditworthiness determines the interest you pay on the loan. If your score is low, even if you can get funding in less than 24 hours, the high interest rate may not be worth it.
Key to take away: If you’re looking for a lender that has easy online and mobile application, can approve your loan quickly, and finances it in the same day, Rapid Finance is the place for you. While not for everyone, this lender has flexible terms and multiple loan products that can be funded quickly. This makes it our best choice for quick funding.
We recommend Rapid Finance for:
- Small business owners who need quick access to finance and don’t want to go through a lengthy application process
- Small businesses that need a lender with multiple financing options
We do NOT recommend Rapid Finance for:
- Borrowers with low credit scores
- Startups (less than three months in business or two to four years for short-term loan applicants)