Rapid Finance Small-Business Loans: 2021 Review

Rapid Finance provides multiple financing products for small-business owners, including term loans and other options.
Tina OremJul 8, 2021

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Our Take

Rapid Finance - Online term loan

Rapid Finance - Online term loan

Min. Credit Score

550

Pros & Cons

Pros

  • Cash can be available quickly.
  • Borrowers with low credit scores may have some options here.
  • Multiple term lengths for different financing needs.

Cons

  • Loans max out at $1 million.
  • May require a lien.
  • Longest loan term is 60 months.

Full Review

Rapid Finance, a Maryland-based online loan provider, offers access to term loans ranging from three months to five years.

Rapid Finance’s other loan options include Small Business Administration loans, asset-based loans, commercial real estate loans, bridge loans, invoice factoring and lines of credit. The company also offers merchant cash advances, which are one of the most expensive forms of financing. We recommend exhausting all other financing alternatives before turning to a merchant cash advance.

Rapid Finance is a good fit for:

  • Borrowers with thin or weak credit who may fall short of qualifying for traditional financing.

  • Small businesses looking for speedy financing.

Reasons to use Rapid Finance

You need fast cash: Once you submit an application, you can get a response within 24 hours.

You want an automated, fixed payment: If you take out a term loan and your business’s cash flows are fairly stable, you can make loan payments automatically either daily, weekly or monthly in a fixed amount right from your business bank account.

Flexible approval evaluation: Rapid Finance may or may not consider your credit as a factor in approving your loan application. The company says that most lenders also look at business revenue, time in business, receivables and business credit history.

Where Rapid Finance falls short

Not for big borrowers: The most you can borrow is $1 million. That amount can get many new businesses going, but businesses with heavy real estate or capital expenditure needs may find the limit too low.

Not for long-term financing: Term loans start at three months and max out at five years. If you need financing for a longer period of time, you may be better off looking into long-term financing from SmartBiz, for instance, which provides SBA loans.

May require a lien: Depending on your application, your loan may be secured by a Uniform Commercial Code financing statement, which is a lien that essentially puts the lender near the front of the line if a bankruptcy occurs on your end and a court has to divide up assets.

Compare business loans

If you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

Find the right business loan

Frequently asked questions