Have you been contacted by Rapid Finance about an outstanding merchant cash advance debt for your business? When dealing with lenders and debt collectors, it’s important to understand your legal rights and the best steps to take. Keep reading to learn more about Rapid Finance and what to do if they contact or sue you about your debt.
Who is Rapid Finance?
Rapid Finance is a business lender that provides financing solutions for small businesses. Before getting a loan or another form of financing from Rapid Finance, it’s important to understand how the business operates and what other customers have to say.
Is Rapid Finance Legitimate?
Yes, Rapid Finance is a legitimate business lender. It’s been in business for nearly 20 years and is accredited by the Better Business Bureau.
Though Rapid Finance is a real company, you may still run into issues working with them. Merchant cash advances are one type of complex business funding that isn’t regulated the same as other business loan products. For that reason, it’s important to do your research before working with any business lender, even a legitimate one like Rapid Finance.
Overview of Rapid Finance
Rapid Finance was founded in 2005 and has, according to its website, provided more than $3 billion in funding across various industries. They further say that they specialize in serving small businesses and, according to its website, empowering them with fast, transparent, and tech-enabled financing to enable their short-term cash flow and long-term business growth.
Rapid Finance offers several types of business funding, including:
- Lines of credit
- Small business loans
- Merchant cash advances
- Bridge loans
- SBA loans
- Invoice factoring
- Asset-based loans
Rapid Finance’s loan and MCA amounts may vary by loan type, but they offer financing of up to $10 million with terms as long as 30 years.
Rapid Finance Reviews and Complaints
Rapid Finance has a Better Business Bureau rating of A+, but for its customer reviews, it only has an average rating of 1.71 out of 5 stars. According to the BBB public records, the company has just one complaint with the Better Business Bureau within the past year (seven within the past three years) and none with the Consumer Finance Protection Bureau. Finally, the company has an average rating of 4.6 out of 5 stars on Trustpilot.
Before getting a loan or an MCA from Rapid Finance or any other business lending company, make sure to read some of its customer reviews, both good and bad, to get an idea of how the company treats its customers and how it responds to issues.
Understanding How Rapid Finance Operates
Rapid Finance offers some traditional forms of financing, including business term loans and SBA loans. However, it also offers more alternative funding methods, including merchant cash advances (MCAs). These methods tend to be a bit riskier since they’re an advance on future sales rather than your current assets or revenue. MCAs also tend to have looser requirements in terms of credit. For example, Rapid Finance offers financing to businesses with fair credit scores.
MCAs can be an effective form of working capital for many businesses, but they also come with risks. Make sure to do your research and fully understand the terms of your agreement before taking money from Rapid Finance or any other company for an MCA.
Dealing with Rapid Finance
What Should I Do If I Receive a Letter or Call from Rapid Finance?
If you’re contacted by Rapid Finance, start by verifying the legitimacy of the contact. While Rapid Finance is a real company, scammers may try to impersonate lenders and debt collectors. You can ensure the communication is really from Rapid Finance by comparing the contact information to that on the company’s website.
Once you know the communication is seemingly authentic, it’s time to figure out exactly why Rapid Finance is contacting you. If they’re contacting you or suing you regarding an outstanding MCA debt that you have not paid, you should request validation of the debt before moving forward.
Finally, if you’re unsure what to do with your communication from Rapid Finance, consider enlisting the help of an MCA attorney who has experience with these types of lenders and can advise and advocate on your behalf.
Handling Communications From Rapid Finance
Make sure to maintain all of your communications with Rapid Finance, whether that be keeping copies of letters and emails or taking comprehensive notes of all your phone calls. You may need to reference these later on if Rapid Finance pursues legal action or tries to file UCC liens.
Knowing Your Rights Against Rapid Finance
When dealing with Rapid Finance, you have certain rights as a borrower, just as the company has certain responsibilities as a lender. You have the right to receive transparent information about your MCA or other loan, including any fees you’re being charged.
You have the right to fair treatment from Rapid Finance and any other lender. Rapid Finance can’t mislead or deceive you about the terms of your loan or MCA. It can’t engage in discrimination in its lending practices and dealings. And if you believe Rapid Finance treats you unfairly, you have the right to recourse by filing complaints through official legal and government channels.
Finally, you have the right to legal representation in your dealings with Rapid Finance. An MCA attorney can review the terms of your loan, communicate with Rapid Finance on your behalf, and represent you in any legal proceedings.
The Legal Side of Rapid Finance
Common Legal Issues with Rapid Finance
MCAs aren’t regulated in the same way as traditional lending products. Unfortunately, this can lead to unethical practices on the part of lenders and business owners borrowing money without truly understanding what they’re getting into. Additionally, MCAs often result in costly rates and fees that become quickly unaffordable.
Like other lenders, Rapid Finance has the right to take legal action against you if you don’t repay your MCA or business loan, and they may be quick to do so.
What Happens If You Get Sued by Rapid Finance
Rapid Finance is also known to arbitrate. An arbitration is slightly different than a lawsuit as it is on a quicker time schedule. Arbitration starts with an official communication, just as a lawsuit would, but is overseen by an arbitration administrator rather than a judge.
If arbitration isn’t successful or Rapid Finance skips directly to a lawsuit, you should expect a different process. If you’re sued by Rapid Finance, the first thing that will happen is you’ll receive a legal complaint against you. Normally any lawsuit will outline the company’s claims and the remedy they’re seeking (such as a judgment to repay the debt). Once you receive the legal complaint, here’s a step-by-step guide of what happens:
- Review the documents: Make sure you thoroughly read and understand Rapid Finance’s complaint. You may compare the information in their complaint to your loan documents to verify their accuracy.
- Seek legal help: At this point in the process, you may decide to hire an MCA attorney or debt relief attorney to represent you. MCA attorneys have plenty of experience dealing with companies like Rapid Finance.
- Respond to the complaint: The complaint will include a deadline by which you must respond, and it’s important to follow it. Failing to respond to the claim could result in a default judgment against you.
- Discovery: During the discovery process, the two sides — you and Rapid Finance — will exchange relevant information and documents related to the case. An MCA attorney can facilitate the discovery process on your behalf and advocate for you.
- Negotiations: Many lawsuits settle before they go to court. You (or your attorney on your behalf) may negotiate with Rapid Finance with the goal of settling instead of going to trial.
- Trial: If you aren’t able to reach a settlement agreement with Rapid Finance, the lawsuit will go to trial, where a judge will issue a judgment that dictates how much you’re required to pay.
How to Negotiate with Rapid Finance
Check to Make Sure Rapid Finance Isn’t a Scam
As we mentioned, Rapid Finance is a legitimate lender. However, scammers frequently target the financial services industry, including impersonating lenders or debt collectors. If you receive a letter from Rapid Finance, it’s important to make sure it’s legitimate.
The first thing you can do is make sure the information on your letter matches the contact information on Rapid Finance’s website. If you are still not totally certain Rapid Finance is the one contacting you, simply call their customer service line and ask.
Strategies for Negotiating with Rapid Finance
In some cases, you may be able to avoid your lawsuit or arbitration moving to the judgment stage is by negotiating a settlement directly with Rapid Finance. Here are a few tips to help you through the negotiation process:
- Understand your loan or MCA agreement: Before negotiating with Rapid Finance, it’s critical that you understand the ins and outs of your loan agreement, including what you were originally required to pay, how much you’ve already paid, and how much you still owe.
- Decide how much you’re willing to pay: It helps to go into negotiations with a number in mind. Consider how much you’re willing to offer to pay to avoid going to court.
- Know your rights: As we discussed, you have certain rights as a borrower when you’re dealing with Rapid Finance. Knowing those rights can help you advocate for yourself if the company crosses a line.
- Hire an attorney: It can be challenging navigating the negotiation process alone. Consider hiring a debt relief or MCA attorney to negotiate with the company on your behalf.
- Get everything in writing: Make sure all of your dealings with Rapid Finance are well-documented, especially any agreements you come to.
How to Protect Against Rapid Finance
Steps to Take If You’re Contacted by Rapid Finance
If you’re contacted by Rapid Finance about an MCA or another debt you owe, here are the first three steps to take:
- Verify the validity of the letter: Make sure it’s really Rapid Finance reaching out to you. And if it is, request validation of the debt and reconciliation of all payments made by you to them.
- Decide on your next steps: If Rapid Finance is suing you or filed a UCC lien, consider your desired next steps, whether it be a settlement, trial, or something else.
- Hire a debt relief attorney: You don’t have to deal with Rapid Finance alone. Consider hiring an attorney to represent and advocate for you as there are attorneys that specialize in MCA debt help.
Filing a Complaint Against Rapid Finance
Remember that you have rights as a borrower when you’re dealing with Rapid Finance advocating for yourself. You can go through government channels like the Federal Trade Commission,your state’s department of finance or banking, or your state’s attorney general. You can also file a complaint with the Consumer Finance Protection Bureau (CFPB) and/or the Better Business Bureau.
Rapid Finance Phone Number and Address
If you have questions for Rapid Finance about your debt, you may contact the company through one of the following methods:
- Phone: 866-224-1162
- Mail: 4500 East West Highway, 6th Floor, Bethesda, MD 20814
How Can a Debt Settlement Attorney Help?
If you’re being sued by Rapid Finance, a debt relief or MCA attorney can help. MCA attorneys have plenty of experience dealing with Rapid Finance and other similar companies and can help guide you through the process, reducing your stress and possibly even reducing the amount you have to pay.
Tayne Law Group offers a free phone consultation with one of our experienced team to discuss your situation and see if legal representation is the right choice. Contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share or sell your information, and all conversations are confidential.
FAQs
Is Rapid Finance a Legit Company?
Yes, Rapid Finance is a real business lender that offers lines of credit, business loans, merchant cash advances, and more. It has been in business since 2005 and is accredited by the Better Business Bureau.
Does Rapid Finance Report to Credit Bureaus?
Rapid Finance’s website doesn’t disclose whether it reports your payments to the credit bureaus. Many business lenders report your loan to your business credit report, while others report to both your business and personal credit. Keep in mind that if you default on your payments, Rapid Finance is likely to report it to the credit bureaus.
How Do I Know If a Loan Company is Scamming Me?
An MCA loan company may be scamming you if they charge exorbitant fees, pressure you to act quickly, or are evasive when you ask questions about your loan. Confirm the legitimacy of any lender before working with them. Additionally, if you receive communications that appear to be from a lender, make sure it’s really the lender contacting you.
