Business Term Loan
Business term loans are a good choice when your business earns a steady income and wants to make fixed payments. Rapid Finance offers both unsecured loans (business term loan) and secured loans (asset-based loans).
Line of Credit
A business line of credit may be a good option if you need to borrow cash at some point in the future, but you’re not sure when. It offers you a window when you can withdraw money from your available credit limit. You only pay interest on the amount you draw.
Invoice Factoring
Invoice factoring is designed to cover your short-term business needs. It lets you sell unpaid invoices to an invoice factoring company for a portion of the money upfront, minus a fee. The factoring company then collects the invoices and pays you the remaining balance. To be eligible, your lender will analyze your customers’ creditworthiness and have you set invoice payment terms to net-30, 60 or 90 days.
Asset-based Loan
One way to get approved for cheaper rates—especially if you have less-than-stellar business loan qualifications—is to put something from your business up as collateral, such as a business account, business vehicle or account receivables. Keep in mind, though, if you default, the lender can take possession of that collateral to recoup its losses.
According to Rapid Finance, you may be able to get even cheaper rates by using more “liquid” collateral, such as savings accounts or account receivables.
Bridge Loan
Bridge loans are short, temporary loans designed to bridge the gap between when you need to cover unexpected business costs and when you’re able to secure better, long-term financing.
Merchant Cash Advance
MCAs let business owners access cash quickly without going through the traditional business loan application process. The advance can be less than, equal to or much greater than your monthly sales. Instead of fixed monthly payments like with a business loan, the money is repaid over time as a percentage of sales.
To qualify for a merchant cash advance through Rapid Finance, you’ll need to accept credit card payments or similar account receivables in order for the repayments to be automatically calculated and deducted.
