In-Depth Analysis

Rapid Finance Review 2024

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Written By
I. Mitic
August 11, 2023
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We recommend Rapid Finance’s merchant financing options for businesses of almost all credit scores that generate a minimum of $5,000 in monthly revenue. If you can’t qualify for funding from a traditional source, this online lender’s relaxed borrower requirements and reasonable rates make it a great alternative. Rapid Finance reviews across the web suggest that this company allows fast funding and has high approval rate. 

$5,000 to $1 million

Min. Credit Score: 550

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Fortunly Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

$5,000 to $1 million
Three months to five years
11% to 31%
2.5% origination fee
Up to three business days
Three months for MCAs, two years for term loans
Depends on the product
Depends on the product
pros thumb up Strengths
  • Same-day funding
  • High approval rate
  • Funds wired directly to your business checking account
  • Reasonable rates for low-credit applicants
  • Funding options for three-month-old businesses
  • Automatic payments
  • Multiple avenues of customer support
  • Prepayment discounts
pros thumb up Weaknesses
  • Origination fee
  • No funding options for businesses with less than $5,000 in average monthly revenue

Rapid Finance Overview

Rapid Finance is an alternative lender that offers a variety of short-term funding options to small businesses. Launched in 2005 as Rapid Advance, this Maryland-based lending company went through a rebrand in 2019. Apart from changing its name, the funding provider went on to expand and diversify its loan products.

Rapid Finance provides $5,000 to $500,000 in merchant cash advances and $5,000 to $1 million in term loans to business owners of almost all personal credit scores. Thanks to its technology-powered approach, this online lender can offer fast approvals and same-day funding to eligible applicants.

Apart from the loan options it provides directly, Rapid Finance also lists a few more products on its website and markets these funding solutions on behalf of other lenders. If we take both direct and indirect Rapid financial services into account, it’s safe to say that this online lender has one of the industry’s most diverse loan product offerings.

How Does Rapid Finance Compare to Other Lenders?

Rapid Finance Logo
Rapid Finance
APR Range

11% to 31%

Min. Credit Score


OnDeck Logo
APR Range


Min. Credit Score


LendingClub Logo
APR Range

9.77% to 35.98%

Min. Credit Score


Rapid Finance Financing Types

Rapid Finance’s business model is a combination of direct lending and matchmaking. In other words, apart from offering its own loan products (small business term loans and merchant cash advances), this company also markets other lenders’ services.

These include lines of credit, invoice factoring, SBA loans, bridge loans, asset-based loans, healthcare cash advances, and commercial real estate loans. For the purpose of this review, we’ll focus only on the Rapid business loans offered directly by this funding company.

Term Loans

If you’re a small business owner looking to borrow between $5,000 and $1 million and plan to pay the money back over a period spanning from three months to five years, you should consider Rapid Finance’s short-term loans.

Considering that this funding type can be used for location expansion, technology upgrades, hiring, and debt consolidation, it’s a great choice for borrowers looking for the fastest ways to help their business grow.

An eligible borrower applying for this Rapid funding option should have a personal credit score of at least 550, a minimum of two years in the business, and $120,000 in annual revenue. Depending on the needs and financial state of your business, repayments can be made on a daily, weekly, or monthly basis.

Merchant Cash Advance

Merchant cash advances (MCAs) are another popular funding solution offered by Rapid Finance. Should you decide to go for this funding option, you’ll receive a lump sum in exchange for a percentage of your receivables – such as credit card transactions – until the advance is repaid in full.

Rapid Finance’s MCAs are available in amounts ranging from $5,000 to $500,000 and can be used to purchase equipment and inventory, bridge payroll, or manage a short-term capital need.

To qualify for a Rapid cash advance, you’ll need a personal credit score of 550 (although 500 would also suffice in some cases), a minimum of three months in business, and $5,000 in monthly revenue. In contrast to term loans, this funding option doesn’t come with a specified repayment schedule. Instead, the speed of repayment relies upon your daily sales.

Rapid Finance Application Process

Rapid Finance reviews – including our own – agree that this funding provider strives to guide its customers through the process of application and approval as quickly as possible. While approvals come within 24 hours, funding is usually available as quickly as three business days. In some cases, same-day funding is also an option.

Provided that you meet the minimum eligibility requirements for either of the funding types, you can begin the application process by filling out a short online application form or giving Rapid a call.

Here are the steps you’ll need to take should you decide to apply for a Rapid business loan online:

  • From the homepage, click “Get Quote” to start your application.
  • Provide all the required personal and business information.
  • State your desired funding amount and loan purpose.
  • Submit any documents the lender may require.

What Information Do I need to Apply?

To prequalify, you’ll be asked to submit the following information:

  • The latest three statements from your business bank account (or, if you’re applying for an MCA, your three most recent credit card statements) for loans under $150,000
  • A voided check from your business bank account or bank letter
  • A copy of your driver’s license or other government-issued photo ID
  • Your most recent business tax return
  • If you’re looking to borrow more than $150,000, you’ll also need to provide your most recent business tax return, balance sheet, and profit and loss statement

Rapid Finance reviews are unanimous that the most convenient way to submit all the required documents is via Rapid’s self-service portal. Alternatively, you can import your credit card and bank statements automatically by connecting your business bank account.

After you’ve provided all the required information, Rapid will use its scoring system to determine the loan options you’re eligible for. Bear in mind that the lender will also perform a soft credit pull before extending you an initial offer.

Should you decide to accept the preliminary offer, you’ll begin the lender’s underwriting procedure. At this stage of the application, RapidFinance will inquire a little more about your company’s annual revenue and any outstanding debt. The lender will also do a hard credit pull that will be visible on your credit report.

After the credit check is completed, you can expect to receive the official offer within six hours. Upon signing the contract electronically, the agreed-upon loan amount will be wired into your business bank account within two business days. Qualifying candidates applying for smaller loan amounts may even get the funds in less than 10 minutes. Based on Rapid loan reviews, approximately 50% of applicants receive same-day funding.

In case you get denied for a loan because of your credit score, Rapid Finance will let you reapply six months later. If your application is rejected for other reasons, you’ll be able to submit another application in 30 days’ time.

Rapid Finance Funding Features

When determining eligibility, apart from looking at its applicants’ personal credit scores, Rapid Finance also takes other factors into account. That makes it a good option for borrowers who are in a more favorable financial situation than their credit score may suggest.

Although Rapid financial solutions can be a solid choice for those looking for a quick capital infusion, they aren’t the market’s most cost-effective options. Given that merchant cash advances and short-term loans are generally among the most expensive forms of financing, we suggest you also explore other options before resorting to these types of funding.

Loan Amount and APR Details

Here’s a quick overview of Rapid Finance’s small business short-term loan product:

  • Loan amount: $5,000 to $1,000,000
  • Factor rate: 1.11 to 1.30 times the borrowing amount
  • Origination fee: 2.5%
  • Loan term: Three to 60 months
  • Repayment options: Automatic daily, weekly, or monthly payments
  • Collateral: UCC-1 blanket lien
  • Personal guarantee: Yes

The cost of a Rapid small business term loan is expressed as a factor rate or a fixed fee. To determine how much the lender will charge you for this type of financing, all you have to do is multiply your loan amount by the factor rate.

So if you’re looking to borrow $10,000 and you are eligible for Rapid Finance’s lowest rate, you’ll be repaying $11,100 over the agreed-upon period. In other words, each dollar you borrow will cost you $1.11 (excluding the origination fee).

Note that the exact rates you’ll qualify for will be determined by Rapid’s assessment of your business’s financial health. As expected, Rapid saves its best rates for the most creditworthy among tits customers.

Now, let’s take a look at Rapid Finance’s merchant cash advance service:

  • Loan amount: $5,000 to $500,000
  • Factor rate: 1.22 times the borrowing amount
  • Origination fee: 2.5%
  • Loan term: three to 12 months
  • Repayment options: Automatic daily or weekly payments
  • Collateral: UCC-1 blanket lien
  • Personal guarantee: Yes

Although Rapid Finance’s merchant cash advance resembles the provider’s short-term loan in that its cost is also expressed as a factor rate, it isn’t technically a loan. Instead of lending you money, the funding provider is buying a portion of your future credit and debit card sales.

Compared to other popular funding types, an MCA is much easier to qualify for. However, the convenience comes at a cost – this financing option is also among the most expensive funding services.

Here’s how Rapid cash loans work. At the end of each business day, Rapid Finance will automatically deduct an agreed-upon percentage of your daily sales. This process will repeat each day until the total borrowed amount is repaid. The lender understands that a small business’s sales may vary on a daily basis, so an MCA term length is always expressed as an estimate.

Eligible and Non-Eligible Businesses

Loan applicants must meet Rapid Finance’s basic criteria to be eligible for this provider’s funding options. For term loans, the minimum requirements include a credit score of at least 550, two years in business, and an annual revenue of at least $120,000.

As far as merchant cash advances go, an eligible business owner will need a personal credit score of 550 (although Rapid Finance reviews by customers indicate that a credit score as low as 500 may be also enough in some cases), a minimum of three months in business, and an average monthly revenue of $5,000.

However, you should keep in mind that funding terms are dependent on the borrower’s location and may vary from state to state. If your small business is based in Nevada, New Jersey, Vermont, Rhode Island, Montana, or South Dakota, Rapid Finance won’t offer you a loan. Also, if you run a sole proprietorship in Oklahoma or Pennsylvania, you’ll have to look for funding options elsewhere.

Rapid Finance Repayment Terms

When it comes to paying back your loan, the terms will depend on a few factors, such as the type of the loan and the industry of your business.

Rapid Finance will deduct your first payment from your business bank account automatically a day or two after you receive your funding. From then on, the ACH payments will be scheduled and you’ll receive a complete schedule of your daily, weekly, or monthly payments in advance.

Over the course of your loan repayment, the lender will let you know whether you meet the prepayment discount criteria and be forgiven for a portion of the remaining interest.

No matter whether you decide to go for a three-month or a five-year repayment period, you can rest assured that each Rapid financial product will come equipped with all the assistance you may need. Not only will the lender give you access to its client portal, where you’ll be able to review the progress of your loan repayment, but you’ll also be able to contact Rapid’s team of business advisors any time you hit a bump on the road.

Our Rapid Finance review wouldn’t be complete without mentioning that this lender doesn’t report payment activities to personal or business credit bureaus.

The Bottom Line

With the rebrand and name change from Rapid Advance to Rapid Finance, this lending company made a decision to slowly walk away from merchant cash advances (which it still offers).

Rapid loans are now more geared towards short-term lending products along with financial services such as lines of credit, invoice factoring, SBA loans, bridge loans, asset-based loans, healthcare cash advances, and commercial real estate loans provided by the lender’s third-party affiliates.

Overall, if you’re looking for a quick business capital infusion with reasonable rates and can’t qualify for funding from a more traditional source, Rapid Finance is a decent option.


Is Rapid Finance legit?


Yes, it is. Rapid Finance’s BBB rating is A+ and the company has been accredited by the Better Business Bureau since 2010. Formerly Rapid Advance, this lending company is considered a good alternative lender because of its flexible terms and rates. Apart from its reasonable loan terms, Rapid also sets itself apart with relaxed requirements and an overall positive reputation. Rapid Finance reviews by customers are generally positive.

Does Rapid Finance report to credit bureaus?


Rapid Finance doesn't report your repayment activity to credit bureaus, so timely payments won't affect your personal or business credit for the better. On the bright side, being scrupulous can improve your chances of getting a better Rapid finance interest rate in the future.

How can I contact Rapid Finance’s customer service?


You can get in touch with Rapid Finance’s customer service team by email ([email protected]) or by phone (866-224-1162). Alternatively, you can fill out a contact form on the site’s contact page. Support agents are available from 9 a.m. to 6 p.m. EST Monday through Friday.

Will applying for a business loan from Rapid Finance affect my credit?


Filling out the online application will lead to the lender’s assessment of your business’s eligibility. At this point, Rapid Finance will only do a soft credit pull, which won’t affect your credit score. Should you decide to accept the loan offer and proceed with the full application process, a hard credit pull will be performed. This may affect your credit score by a few points.