Fast Progress has become Fast Funds
In case you haven’t read, small company funder Rapid Progress has become commercially Fast Fund. This means their attention-getting ads (‘Rapid Progress, it did not state no…’) will need to be scrapped or cleverly called over. Your age change in the initial put?
The rebranding is actually an upgrade for the Bethesda-based online lender. In fact, we recently raised our score for Rapid Finance (see Rapid Progress ratings) to reflect the likely reputational tailwind.
Especially, negative connotations nearby the definition of “advance” is actually a major cause of the change. Today there is nothing wrong with a lot of MCA otherwise provider cash advance companies (beyond annual commission rates all the way to 384%) 1 . Nevertheless the backlash close brand new Confessions of Judgement violations in The fresh new York provides triggered multiple alt-fi companies simply to walk back its ‘bucks advance’ deals. 2
Along with the predatory lending stigma created by several crappy apples, more established small enterprises is actually less inclined to shop for alot more stringent (and cheaper) financial support such as SBA loans at a company with “advance” from the term.
Quick Loans Limelight
Fast Progress (now Rapid Finance) is actually situated for the https://paydayloansexpert.com/installment-loans-ne/ 2005 and it has reportedly funded more than $step one mil for a huge number of smaller businesses. The business’s background originates from the firm financing progress industry and you may lots of their customers will most likely not be eligible for old-fashioned loans. Today, Quick Money have a variety of capital choices for users also dining, salons, clean attributes, auto shops, diners and you will liquor places.
Given the wide array of business financial support options, we expected Rapid Finance to have morphed into more of a marketplace lender like Fundera or Lendio. For example, it’s unusual to see business cash advances, SBA loans and invoice factoring all from one company.
But we spoke with Nick in the Detroit, Michigan office who offered that about 85% of their funding is now direct loans. It’s obvious that the name change has not negatively affected the lender’s capabilities in any way.
That leaves just 15% to be referred out to various lenders. Unfortunately, Rapid Finance does not reveal their lending partners until a customer is rather far along in the application process. This is similar to Biz2Credit, who also does not disclose their partners.
We suspect their partner list is actually quite high, considering they actively solicit partner applications from finance brokers, house created financing companies, credit card processers, equipment leasing shops and factoring enterprises right on their site.
Just how is Fast Finance Distinct from Almost every other Choice Loan providers?
Unlike most alt-fi companies, Rapid Advance offers healthcare cash advances, known as HCAs. They provide businesses in the healthcare space immediate net working capital against a percentage of future insurance receivables. This transaction is somewhat similar to medical factoring, in that healthcare companies are fronted business capital as an alternative to waiting for future reimbursements. A Rapid Finance HCA can advance $5,000 to $500,000. And there are no fixed daily or weekly repayments as with some advances.
Another difference is that Rapid Finance does not offer charge funds options themselves. While they likely utilize names we like including Fundbox or Bluevine, we would prefer they provide the service themselves. This way a stronger relationship between the small business and financing company can be fostered.
A factoring company provides upfront funding, the advance, for B2B companies who typically wait weeks or months for customers to remit credit payments. Major names include OTR Financing, Riviera Loans and FleetOne.
Then there are the fintechs such as Ondeck Money, Financing Pub and Kabbage loans (see Kabbage product reviews) that provide on the web business fund. But unlike these funding options, MCAs, HCAs and account receivable factoring doesn’t incur additional debt for the small business.