Published By Janet Gershen-Siegel at September 4th, 2018
Rapid Advance is one of several lending companies online. They offer short term loans (MCA, also known as merchant cash advances). We look at the specifics and drill down into the details. Note that Rapid Advance is now Rapid Finance—please see our review of Rapid Finance.
Rapid Advance is located online here: https://www.rapidadvance.com/. Their physical address is:
4500 East West Highway
Bethesda, MD 20814.
You can call them at: (240) 380-1657. Their contact page is here: https://www.rapidadvance.com/contact-us. They have been in business since 2005.
They will at times file a UCC lien (albeit not always).
$5,000 – $1 million is available in funding. The terms are 4 to 12 months. Your business needs to have annual revenue of $120,000 or more. You have to have a personal FICO Score of 580 or better. The minimum time your company needs to be in business is 2 years.
There is a 1.16 to 1.30 factor rate.
A range of $15,000 – $1 million is available in funding. The terms are from 6 to 15 months. Your business needs to have annual revenue of $240,000 or more. You have to have a personal FICO Score of 620 or better. The minimum time your company needs to be in business is 3 years.
There is a 1.12 to 1.31 factor rate.
$15,000 – $200,000 is available in funding. The terms are 9 to 18 months. Your company has to have annual revenue of $240,000 or more. You have to have a personal FICO Score of 660 or better. The minimum time your company has to be in business is 6 years. Your business needs to have minimum bank balance of $10,000 or more. Borrowers have to have at least 10 deposits from 5 different sources every month.
There is a 1.11 to 1.25 factor rate.
Rapid Advance also offers SBA bridge loans, but there is little information on them on their website.
Advantages are a few choices for loan types. The maximum amounts available are high. Rapid Advance has also been in the online lending space for longer than most of the players in this industry.
Disadvantages are that the minimum bank balance requirements are fairly high. In addition, the annual revenue requirements are also high. Borrowers have to have at least five deposits from five different sources every month at minimum. But this depends on the loan type.
You need to have a personal guarantee. There is a chance of them taking out a UCC lien. Their time in business requirements are on the lengthy side.
The companies which will do the best with Rapid Advance will tend to have entrepreneurs with decent personal credit scores and a considerable time in business. These companies will also have fairly high annual revenues and be able to withstand the entrepreneur giving out a personal guarantee and Rapid Advance taking out (maybe) a UCC lien.
The businesses which might not do so well will have been in business for too short an amount of time, or not have sufficient annual revenues. Companies not needing a lot in funding would probably do better going elsewhere.
And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.
Go over the details carefully. And decide whether this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.