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The Green SheetGreen Sheet

Enhance relationships with working capital for SMBs

Bethesda, Md., based Rapid Finance, was founded in 2005 to fulfill market demand for small and midsize business (SMB) financing. After seeing SMBs struggle to acquire working capital from traditional financial institutions, such as banks and credit unions, company leaders saw an opportunity to improve efficiencies and access to lending sources, beginning with a simple application process.

Will Tumulty, CEO at Rapid Finance, noted the company has nearly 300 employees and focuses on helping SMBs find sustainable, customized financing solutions. "Rapid Finance takes a customer-first approach to everything that we do," he said. "We are committed to providing clients with financing options that best meet their individual business needs."

Tumulty further noted the company has three attributes that differentiate it from competitors in the space, stating that Rapid Finance is:

  1. More than just an SMB financing company. Through the company's recent acquisition of Thrive, Rapid Finance is expanding its market offerings to automate the SMB lending process through its proprietary lending technology platform.
  2. Well-positioned to support low-credit or "thin" file SMB borrowers. While numerous SMB lenders require a minimum 650 credit score to be eligible, Rapid Finance provides responsible financing options to customers with scores as low as 550, along with repayment options tied to SMB revenues, to help SMBs manage finances in the ever-changing market.
  3. Highly scalable having processed more than 21 million loan applications, nearly 2 million loan increases, 15 million grant applications, and funded more than 10 million loans and grants for over $400 billion, helping SMBs stay afloat and solvent during the pandemic.

Fueling economic growth

Among Rapid Finance's defining successes, Tumulty said, Rapid Finance is proud to have played a role in the nation's economic recovery when the company assisted the Small Business Administration in 2020.

"We immediately delivered a Loan Origination System capable of handling the large volume of applications for the COVID-19 Economic Injury Disaster Loan (EIDL), '' he said. "Applications were pouring into the SBA from small businesses across the country applying for the nation's first small business pandemic aid program.”

Tumulty noted the recent acquisition of digital lending platform provider Thrive is part of the company's efforts to expand its suite of finance solutions and provide banks, nonbank lenders and credit unions with a streamlined origination process and efficient underwriting for both consumer and SMB lending.

The company set forth examples of the company's core technology solutions, stating that Rapid Finance offers:

  • Small business loans: Agile financing, and has originated more than $3 billion in volume since inception to more than 40K small businesses.
  • Small business lines of credit: Businesses with access to line of credit financing from $5,000 up to $55,000.
  • Merchant cash advances: Merchant cash advances of $5,000 to $600,000.
  • Lending-as-a-service (LaaS) capabilities:White-label lending capabilities to organizations that serve SMBs.
  • Software-as-a-service (SaaS) capabilities: A complete SaaS platform to support lending operations across acquisition, origination and servicing functions.

Diversified partner opportunities

Tumulty went on to say that Rapid Finance works closely with sales channel partners to help their SMB customers access the capital they need to grow and prosper. As many partners have found, being able to offer capital solutions to SMB customers enhances client relationships and results in deeper long-term relationships that help their core businesses. 

"We expect fast access to capital to remain a critical need for business owners in 2023, and we will continue to thoughtfully and strategically invest in the technology and service capabilities that will help SMBs not only survive, but thrive in today's economy," he said. end of article

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