Our Take
4.3
NerdWallet rating
The bottom line:
Rapid Finance offers funding starting at $5,000 for small-business owners with two to three years of operating history. Its streamlined application process can provide funds quickly to approved borrowers, but if you have questions before applying, you may find it hard to get in touch with customer support.
Rapid Finance - Online term loan
Max Loan Amount
$1,000,000
Min. credit score
650
Apply now
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Pros & Cons
Pros
- Wide variety of business financing options available.
- Potential to receive funding within 24 hours.
- Simple application process.
- No prepayment penalties.
- No collateral required.
Cons
- Website provides limited information on eligibility and loan terms.
- Customer service can be difficult to reach, in our experience.
- Automatic payments may impact cash flow.
- Long time-in-business requirements.
Compare to Other Lenders
with Fundera by NerdWallet | with Fundera by NerdWallet | with Fundera by NerdWallet |
Max loan amount $1,000,000 | Max loan amount $250,000 | Max loan amount $250,000 |
Min. credit score 650 | Min. credit score 600 | Min. credit score 625 |
Full Review
Editor's note: While Rapid Finance offers other types of business loans, this review focuses on its business term loan, line of credit and merchant cash advance (MCA).
Rapid Finance is a Maryland-based online lender offering small-business loans to established entrepreneurs in need of fast financing. Founded in 2005, Rapid Finance stands out for its ability to fund quickly, but its customer service can be spotty, and the company has high time-in-business requirements. Rapid Finance prefers working with businesses in industries like restaurants, health services, business services and retail.
Rapid Finance is best for borrowers who:
- Need fast funding. You can apply online and, if approved, receive funds in just a few hours.
- Prefer to build a relationship with a single lender. With multiple financing options available, Rapid Finance is a convenient choice for business owners who want to work with a single lender for current and future financing needs.
- Have an established businesses, but can’t qualify for bank financing. You’ll need a minimum of 24 to 36 months of operating history to qualify for funding from Rapid Finance, which is similar to the time in business requirement from many banks. However, if your credit score is keeping you from receiving bank funding, then Rapid may make sense for you as it accepts borrowers with fair or bad credit (depending on the loan product).
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Rapid Finance loan features and requirements
Here’s what you can expect from Rapid Finance’s term loan, line of credit and merchant cash advance.
Rapid Finance term loan
4.3
NerdWallet ratingLoan amount | $ 5001 to $1 million. |
Estimated APR | Not disclosed. |
Fees | No prepayment penalty. |
Terms | 3 to 60 months. |
Repayment schedule | Daily, weekly or monthly. |
Funding speed | As fast as 24 hours. |
Minimum requirements | |
Credit score | 650 . |
Time in business | 36 months. |
Annual revenue | 120000 . |
Rapid Finance line of credit
4.0
NerdWallet ratingLoan amount | $ 5001 to $250000 . |
Estimated APR | Not disclosed. |
Fees |
|
Terms | 3 to 18 months. |
Repayment schedule | Daily, weekly or monthly. |
Funding speed | As fast as 24 hours. |
Minimum requirements | |
Credit score | 620 . |
Time in business | 24 months. |
Annual revenue | 150000 . |
Rapid Finance merchant cash advance
Advance amount | $ 5000 to $500000 . |
Estimated factor rate | 1.12 to 1.50. |
Fees | No prepayment penalty. |
Terms | On average, borrowers repay their advances in 3 to 18 months. |
Repayment schedule | Daily or weekly. |
Funding speed | As fast as 24 hours. |
Minimum requirements | |
Credit score | 600 . |
Time in business | 36 months. |
Annual revenue | 120000 . |
» Learn more about different types of business loans
Rapid Finance application process
Rapid Finance offers an online application. In addition to basic information about your business, like your legal structure and how long you’ve been in operation, you’ll be asked to provide the following:
- A valid form of identification such as a driver’s license or passport.
- Business bank account and routing numbers.
- Last three months of business bank statements.
- Last three months of credit card statements (for MCA).
Rapid Finance will then review your application and reach out for additional information (if needed). If approved, funds will be sent to the business bank account you provided. This could happen in as little as a few minutes or in a few hours after approval.
Where Rapid Finance stands out
Streamlined application process
Rapid Finance requires minimum information to complete its online application. While you may have to provide additional information during underwriting, applicants typically receive a response within 24 hours of submission. This simplified application process can be particularly beneficial for small-business owners who need fast funding to manage an emergency or invest in a new growth opportunity.
» MORE: Best fast business loans
Variety of funding options
Rapid Finance offers a variety of small-business financing products — something not every lender does — including lines of credit, term loans, MCAs, commercial real estate loans, bridge loans, and asset-based loans. This comprehensive offering may be beneficial for small-business owners who prefer to work with a single lender for current and future financing needs.
Where Rapid Finance falls short
Customer support may be spotty
While Rapid Finance provides several phone numbers and email contacts on its website, actual support may be unreliable. Despite more than a dozen outreach attempts over two months, NerdWallet was unable to reach customer support. Emails received no response, and phone calls were directed to voicemail without follow-up. This may serve as a red flag for prospective borrowers considering Rapid Finance.
Won’t finance startups or newer businesses
Rapid Finance has stricter time-in-business requirements than many other online lenders. Its term loan and MCA require at least
36
months in business, while its line of credit requires a minimum of 24
months. In contrast, lenders like National Funding and OnDeck offer term loans to businesses with as little as 12 months or less of operating history.» MORE: Best startup business loans
Automatic payments from business accounts
Rapid Finance’s term loan, line of credit and MCA all require automatic repayments, which means the payment amount will automatically be withdrawn from your business bank account. While this may be convenient for some borrowers, other borrowers may prefer to have control over when payments are made, especially if they have inconsistent cash flow. If there’s not enough cash in the account when the payment is taken, a borrower might have to pay overdraft fees, which can add up quickly.
Website lacks transparency
Although the website includes dedicated pages for each financing option, Rapid Finance provides minimal information about borrowing costs and eligibility requirements. This lack of detail can make it tricky for small-business owners to compare offers or determine whether they’re likely to qualify before applying.
Alternatives to Rapid Finance
Fora Financial
Alternative to Rapid Finance’s term loan.
Fora Financial
Fora Financial - Online term loan
NerdWallet Rating
4.7
Min Credit
570
Read Review
Apply now
with Fundera by NerdWallet
Fora Financial offers a more accessible term loan option for newer businesses and bad-credit borrowers. Applicants may qualify with a credit score as low as
570
and just 6
months in business. In contrast, Rapid Finance requires a credit score of at least 650
and 36
months in business. However, Fora Financial’s minimum annual revenue of $240000
is twice as high as Rapid’s, and Fora offers much shorter maximum loan terms (18
months versus 60
months).Headway Capital
Alternative to Rapid Finance’s line of credit.
Headway Capital
Headway Capital - Line of credit
NerdWallet Rating
4.7
Min Credit
625
Read Review
Apply now
with Fundera by NerdWallet
Headway Capital’s line of credit is a flexible alternative for newer businesses with modest funding needs. It requires only
6
months in business and $50000
in annual revenue — less than Rapid Finance’s 24
-month and $150000
line of credit minimums. However, Headway Capital’s maximum credit limit caps at only $100000
, compared to Rapid Finance’s higher limit of $250000
.Giggle Finance
Alternative to Rapid Finance’s merchant cash advance.
Giggle Finance
Giggle Finance - Merchant cash advance
Min Credit
300
Read Review
Apply now
with Fundera by NerdWallet
Giggle Finance’s MCA may be a good fit for independent contractors or gig workers in need of quick access to $
10000
or less. Its MCA requires only 3
months in business. However, it charges a high origination fee and doesn’t accept businesses based in New York, California or Oregon.» Want more options? Check out our list of best online business loans.
Apply now
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Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Frequently Asked Questions
Rapid Finance says it has issued over $3 billion in business financing. Since 2010, the lender has been accredited by the Better Business Bureau, where it has an A+ rating.
Rapid Finance requires businesses to be operational for at least three years to qualify for its term loan, which does not make it a startup business loan option. Its other loan options include asset-based loans, commercial real estate loans, bridge loans, invoice factoring and lines of credit, which may have varying time-in-business requirements. The company also offers merchant cash advances, which are one of the most expensive forms of financing. As a result, we recommend exhausting all other financing alternatives before turning to a merchant cash advance.
New elevated offer
