|Loan types||Small business loans, merchant cash advances|
|Loan amount||$5,000 to $500,000|
|Repayment Terms||6-18 months for small business loans|
|Top Pro||Incentives for early loan repayment|
|Top Con||Monthly revenue requirements can disqualify some|
|Best for||Less established businesses that need quick funding|
Founded during the economic recession in 2008 by 2 college roommates, Fora Financial aims exclusively to deliver robust financing solutions for small businesses. The Better Business Bureau assigned an A+ rating to the company, which has been also selected for the Inc. 5000 list. Since its inception, over 13,000 businesses across several industries have turned to Fora Financial for its personalized approach to funding. Business borrowers rely on Fora Financial for its quick approvals, easy applications, and its ability to fund loans within 3 to 4 business days. To meet a range of financing needs, Fora offers both small business loans and merchant cash advances, enabling small businesses to quickly access the funding they need for expansionary purposes.
Newer companies who need funding often do not have the adequate financial history or collateral to be approved by institutional lenders. Fora Financial looks at more than just credit scores when assessing applicants, with newer and less established small businesses readily able to obtain funding solutions to meet their needs.
Fora Financial is willing to provide funding even for businesses with less than preferable credit ratings. A hard credit check will be performed, but the company maintains that it is not the factor for determining approval and Fora Financial prides itself on its willingness to serve businesses that might be turned down elsewhere.
For small businesses seeking straightforward funding solutions, Fora Financial has the answer. To meet the needs of recently established businesses that require working capital or financing to grow, the lender offers both short-term loans with traditional repayment terms and merchant cash advances that provide more flexible funding. Financing is simple and convenient, with a streamlined application process that can give businesses an answer in as little as 24 hours before funds are made available. The company is happy to work with customers with weaker credit histories, as its approval process is more holistic when appraising a business’s track record. Applying is obligation-free, so prospective borrowers can evaluate their options without taking any undue risks. Fora Financial also works directly with customers to find the most appropriate solution, tailoring repayment terms to fit diverse needs and repayment capabilities.
Highlights for Fora Financial:
Getting started with Fora Financial’s one-page online application takes just minutes. During the initial steps, prospective borrowers are asked to share basic details about their businesses including monthly gross sales, time in business, and pertinent contact information. Additionally, applicants are asked to provide their three most recent bank statements, and could be asked to provide tax returns or profit and loss statements, and balance sheets as well.
After finishing the initial steps, applicants will be contacted by a Fora Financial representative for a further interview to answer any other potential questions the lender may have. The company will then perform a soft credit inquiry to finalize loan terms and start the underwriting process. After submitting requested business history, applicants will be able to weigh their loan terms and select the appropriate option. Final approval can arrive within 24 hours after applicants provide personal identification and proof of business ownership in the form of a voided check. Once applicants have received final approval, they can receive their funds in as little as 72 hours.
While Fora Financial is welcoming and flexible to newer businesses, the company does require that applicants meet the following minimum requirements:
|One-page quick application||Representative APR rates unlisted|
|Fast access to funds||Origination fees accompany financing|
|Flexible qualification requirements||No long-term financing options|
|Personalized customer service|
The company has a lot of great aspects which more than make up for any potential drawbacks. The one-page quick application takes just minutes to complete, and leads to funds being received as fast as 3 days after approval. Fora Financial also has flexible qualifications for borrowers, making it easy for newer businesses to receive the crucial funding they need. The significant knowledge-base that the company has built goes a long way towards educating and informing potential borrowers while helping them glean important insights about running and financing a small business. Finally, the company goes the extra step to give personalized customer service, with clients working directly with agents throughout the entire loan process.
Prospective borrowers have a lot to gain from evaluating Fora Financial’s services, however, there were some aspects of which could be improved to deliver an even better solution. Foremost, the website could clarify how the company measures and creates its buy rate for customer loans. Before applying it is difficult for a borrower to know what their monthly payments may look like. In our research we also discovered that a 4% origination fee is charged, and that rates have been reported to be on the higher end of the industry spectrum, which is not explicitly clear on the website. Lastly, while we did appreciate that the website went the extra step to produce an informational video describing how its loans work, we did notice some inconsistencies for loan terms and rates that could confuse viewers.
Businesses applying for financing from Fora Financial can choose from short-term business loans or merchant cash advances. Both loan types feature amounts between $5,000 and $500,000. During the underwriting process, each customer receives a one-time factor rate which determines how much interest will be charged for the term. The company does not directly list interest rates on its website, but it offers factor rates that average between 1.15 and 1.33. However, Fora Financial does generally charge a 4.00% origination fee on its loans which are near the higher end of the industry range.
From the second they begin their application, each client works with a Fora Financial Capital Specialist that helps construct the right loan, guide prospective borrowers through the application process, and offer guidance during the term. After approval, borrowers can also work with the customer service team if repayment questions arise along the way or to apply for additional funding.
There are no restrictions placed on how customers may allocate their funding. Whether a business needs extra working capital to hire new employees or to purchase new equipment, the use of financing is entirely up to borrower. The company exclusively offers unsecured financing, which is a great relief to many businesses and no personal guarantees are required either. Furthermore, borrowers are also incentivized to repay their loan quicker, as Fora Financial offers discounts for early repayment discounts starting at $0.10 for every dollar.
Short-term loan repayment terms can range between 6 to 18 months. Due to the nature of merchant cash advances however, there are no set terms. Even so, cash advances are designed for a similar term frame relative to more traditional loan options. Fora Financial differs from other financing companies in that they do not assign standard APR for their loans. Instead, during the application process, applicants are assigned a one-time buy rate based on an analysis of the overall health of the business and company history. An assigned buy rate is used to determine borrowing fees owed back to Fora Financial throughout the term.
Fora Financial has several phone lines available for sales inquiries, renewals, accounting, and customer service. We found the company’s representatives to be professional and knowledgeable, answering all our inquiries in a friendly and transparent manner. Email support is also available and to take its service a step further, the company regularly responds to comments on its social media accounts. What truly sets Fora Financial apart is its team of Capital Specialists. From the beginning of the application process until the end of the loan term, customers will work hand in hand with expert representatives at Fora Financial. Finally, the website hosts an FAQ to address common questions related to the financing process alongside a useful blog filled with supportive resources for small businesses.
For prospective borrowers seeking swift financing and helpful service, Fora Financial offers a quick application, fast approval, and personalized attention. Prospective borrowers can quickly and easily obtain the short-term business loan or merchant cash advance they need to grow their business. The company’s hands-on approach is a big plus for newer businesses that may require guidance during the funding and application process. More importantly, the company’s level of customer service makes them an ideal partner for newer businesses who are looking to grow. For small businesses seeking to improve cash flows or expand, Fora Financial presents an attractive solution designed to overcome many of the challenges associated with the lending process.
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