PROS / You won't have to pay to apply or create an account with this lender.
CONS / You must make at least $10,000 in credit and debit card sales per month.
VERDICT / Rapid Capital Funding is a viable merchant loan solution for businesses that need repayment term flexibility, but you are likely to pay more in repayment rates to this lender than others we reviewed.
Rapid Capital Funding is a merchant cash advance service that doesn't require a personal guarantee for its unsecured merchant loans. It provides working capital for small businesses that range from $5,000 to $500,000. You are likely to pay more for financing from this lender – its repayment costs range from 15 to 39 percent, which is higher than the average. However, you won't pay extra fees on top of the financing costs because Rapid Capital Funding doesn't charge application or origination fees.
Small businesses that qualify for a business cash advance with this lender must be located in the United States and have been in operation at least six months, which is standard compared to the other merchant cash advance companies we reviewed. You need to make a gross revenue of at least $10,000 per month, though, which is the highest revenue requirement in our review.
When you apply for alternative business funding with Rapid, you must submit the last three months of your processing statements and business bank account statements. You must also permit the lender to run a credit check. We weren't able to get a quote over the phone when we contacted the merchant cash advance service. And the company doesn't reveal the range of hold-back rates that apply to your daily credit card sales for repayment.
Rapid Capital Funding works with your existing credit card processor, so there's no need for you to switch. You have the option of paying a set daily amount that the lender withdraws from your business bank account. The repayment term is variable, and there is no penalty for exceeding the term length of the merchant cash advance. There's no benefit to paying off the financing early, though – Rapid does not offer a prepayment rebate.
Although Rapid Capital Funding is one of the more expensive merchant cash advance companies we reviewed, with repayment costs ranging between 15 and 39 percent of the advance amount, you won't have to pay extra fees, such as application or origination costs. To qualify for a merchant loan, though, you need to make at least $10,000 gross revenue per month, which may be difficult for young businesses.