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  1. #1

    Rapid Finance

    Rapid just killed my deal in after sending in all the stips!! saying the business started in December of last year but clearly on the SOS it states it was almost 3 years ago. dont understand???

  2. #2
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    Quote Originally Posted by Robinhood21 View Post
    Rapid just killed my deal in after sending in all the stips!! saying the business started in December of last year but clearly on the SOS it states it was almost 3 years ago. dont understand???
    Ownership change? SOS info updated?
    Dave Lambert
    FC Financial LLC
    dave@fcbankcard.com
    http://www.fcbankcard.com
    SBA 7(a) Loans
    1-727-291-7890 (Text or Leave Message)
    Office: 727-233-1111

  3. #3
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    It sounds like the business incorporated/filed 3 years ago but was dormant until December of last year. If they did not file returns for the dormant years they would not be 'active'.

    If that's the case, once they file returns on back years they can be reinstated

  4. #4
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    Rapid is the best / cleanest shop in the game... years strong.

  5. #5
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    there should be a logical explanation, albeit signed contract declinations SUCK in general. Try and find another home for your merchant

  6. #6
    Senior Member Reputation points: 11128 FUND3R1's Avatar
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    Rapid - Doesn't put out hard offers, it's a Pre-Approval and then once everything is sent in they will decide if the deal is approved/declined. It's one of the best Tier A shops in the game. If your client was a Sole Prop Prior of the LLC being created - Maybe they have documentation that states they were a sole prop before incorporated..... Just Saying.
    FUND3R1

    "Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each. --Christopher Rice"

  7. #7
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    Soft offers suck. geting customers to sign contracts that aren't real is not the way to go

  8. #8
    Veteran Reputation points: 144931 J.Celifarco's Avatar
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    Rapid is a great company but you need tyo understand how they do their underwriting. The majority is done after signed contracts. This is how they have always done business, but if you are not used to it you can definitely get caught off guard. That said they give some of the strongest A paper offers out there, so you take the good with the bad.
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  9. #9
    Senior Member Reputation points: 170618 ryan $'s Avatar
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    You should be able to work on this and get it overturned, with some digging....

    Ask for 2 Tax Returns, Done deal.

  10. #10
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    why not do hard offers upfront? i mean an offer isn't an offer unless its a hard offer. i guess you would have to see how many deals get killed or revised contracts in to see if that model works for you

  11. #11
    Quote Originally Posted by fundingsmbs View Post
    why not do hard offers upfront? i mean an offer isn't an offer unless its a hard offer. i guess you would have to see how many deals get killed or revised contracts in to see if that model works for you
    Yeah, good luck getting every ISO to submit a complete MTD with every submission. I personally would love if they did as I waste a lot of time on files that the ISO or merchant conveniently leaves out that they haven't made any deposits (or extremely low $), were negative the entire time, or just got funding in the MTD. Even then, bank login is still necessary as they could be funded just after sending you the MTD. It's also time-and-cost-intensive to conduct a complete, thorough TLO and background search into them and all the related entities when most approvals don't convert into fundings.

  12. #12
    Senior Member Reputation points: 11128 FUND3R1's Avatar
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    Quote Originally Posted by fundingsmbs View Post
    why not do hard offers upfront? i mean an offer isn't an offer unless its a hard offer. i guess you would have to see how many deals get killed or revised contracts in to see if that model works for you
    Everything costs money - background checks aren't free, and a lot of other tools that they use- it might be more cost effective for them to do it once signed contracts come in.
    FUND3R1

    "Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each. --Christopher Rice"

  13. #13
    Quote Originally Posted by FUND3R1 View Post
    Everything costs money - background checks aren't free, and a lot of other tools that they use- it might be more cost effective for them to do it once signed contracts come in.
    THIS. Especially when a good % of deals die during bank verification when you realize they just took 3 positions the day before

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    so the offer isn't real and the signed contract isn't real. marketing and acquiring leads isn't free either. i get the bank verification, but, many who have been around there was a co out of FL, who was notorious for RIP on signed contracts and mysteriously, they funded after a decline.

  15. #15
    Senior Member Reputation points: 170618 ryan $'s Avatar
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    Quote Originally Posted by fundingsmbs View Post
    so the offer isn't real and the signed contract isn't real. marketing and acquiring leads isn't free either. i get the bank verification, but, many who have been around there was a co out of FL, who was notorious for RIP on signed contracts and mysteriously, they funded after a decline.
    The percentage of Rapids deals that die, is not that bad.

    Doing full underwriting up front is costly, money and time, only to have it go nowhere.

  16. #16
    Veteran Reputation points: 144931 J.Celifarco's Avatar
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    Quote Originally Posted by ryan $ View Post
    The percentage of Rapids deals that die, is not that bad.

    Doing full underwriting up front is costly, money and time, only to have it go nowhere.
    saving that money upfront allows them to give better rates and terms so you take the good with the bad
    John Celifarco
    Managing Partner
    Horizon Funding Group

    3423 Ave S
    Brooklyn, NY 11234
    T: (347) 773-3990 | F: (718) 795-1990
    Linkedin: Profile
    Email: john@horizonfundinggroup.com

  17. #17
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    rapid is famous for that but if you send the stips they will eventually need from the start , you will barely have a decline on one yard line

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    That's why I like our business model where we underwrite the file upfront so every contract that comes back will fund unless the merchant double funded on that day and there is no room left for us .
    Granted we are a smaller shop and we only see a max of Two Hundred files a day so it's more manageable for us to underwrite up front .
    Additionally we don't have a direct sales team . Everything is driven by the ISO channel including the renewals .
    Jake Strelzik
    Vice President / ISO Relations

    4000 Hollywood Blvd
    Hollywood , FL 33021
    954-641-8756 (office) /305-785-2548 (cell)
    888 472 2933 fax
    jstrelzik@flashadvance.com
    www.flashadvance.com

  19. #19
    Quote Originally Posted by Robinhood21 View Post
    Rapid just killed my deal in after sending in all the stips!! saying the business started in December of last year but clearly on the SOS it states it was almost 3 years ago. dont understand???
    Vintage Advance can help you out. We provide 2-5th positions B- C paper, If you are looking for a home to fund them with, I'd love the opportunity to work with you. We're an ISO driven Lender (no inside sales team)
    deals@vintageadvance.com

  20. #20
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    Rapid is defintely a Solid Shop. Unfortunately they do their real underwriting after contracts signed. We had multiple deals in with them that got killed after contracts signed. But we also have deals with them that the provide longest term and highest offers with strong commissions.

    They pay on renewals and from our experience do the right thing. From my understanding they had to change with the times because of COVID, just like all the other lenders we work with.
    Roger Resides
    roger@wecompetelenders.com
    85 Broad Street New York NY 10004
    Cl: (646) 876-2556 | Ph: (844) 516-0633 | Fx: (844) 516-0633
    www.wecompetelenders.com

  21. #21
    I had that happen to me over 10 years ago when i first started. Rapid saw he had 2 advances but one was paid off and asked me for a million stips and then declined it but the underwriters and iso rep never answered my emails or calls to let me know and the owner of my then company had to call and find out. If you are willing to deal with that to hopefully get a great offer just let your merchant know so you do not have to tell them last minute your offer that you signed contracts on was declined. My company tmrnow has competitive buy rates on shorter compared to rapid and we do not refinance the merchants balances like they do and everyone else does so they renewals are double the cost. We pay same on renewals as we do on the first deals as well. We try to underwrite as much as we can upfront so after contracts are signed our percentage of declines are very low. The only time we have to decline a file after contracts signed is we find out on a zbl merchant defaulted first or the bank login shows they are negative unless it is a cc split and balances are already bad or they got funded by a new company right before or a very bad criminal back ground. So if the iso asks the right questions and handles the merchant the right way that can eliminate a lot of the last minute declines but you still have merchants that will lie and hope not to get caught and that will always happen.

  22. #22
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    Quote Originally Posted by Robinhood21 View Post
    Rapid just killed my deal in after sending in all the stips!! saying the business started in December of last year but clearly on the SOS it states it was almost 3 years ago. dont understand???
    The business was probably incorporated 3 years ago but revenue starts being generated only in December of last year. This happens alot.
    Thank you,

    Lior Monus
    Business Development Manager
    CFG Merchant Solutions


    Direct: (646) 880-6764
    Cell: (516) 319-5826
    Fax: (646) 278-7322
    Lmonus@cfgms.com
    180 Maiden Lane New York, NY 10038

    www.cfgmerchantsolutions.com

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