Fora Financial
4/5 stars
A direct lender that provides working capital solutions to small and medium-sized businesses across various industries.
Pros
- Fast Funding: Applicants can receive approval decisions within 24 hours and access funds in as little as 72 hours, making it suitable for businesses needing immediate capital.
- Lenient Credit Requirements: With a minimum credit score requirement of 570, Fora Financial is accessible to business owners with less-than-perfect credit histories.
- No Collateral Required: The company offers unsecured financing options, eliminating the need for physical collateral.
- Prepayment Benefits: Borrowers may qualify for discounts if they choose to repay their loans ahead of schedule, providing potential cost savings.
Cons
- Higher Costs: Interest rates are presented as factor rates, which can make it challenging to compare with traditional APRs. Additionally, origination fees may apply.
- Short Repayment Terms: The maximum loan term is 18 months, which may not be suitable for businesses seeking long-term financing solutions.
- Frequent Repayments: Repayment schedules are typically daily or weekly, which could strain cash flow for some businesses.
The Bottom Line
Fora Financial is a good option for businesses with irregular or seasonal revenue with its revenue advance loans.
This page may contain affiliate links. Our assessments are grounded solely in the product’s merits and performance.
Loan Types
Short-Term Business Loans
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- These loans provide a lump sum of capital to businesses for various purposes, such as expansion, inventory purchases, or managing cash flow.
- Loan Amount Range: $5,000 to $1.5 million.
- Terms: Repayment periods extend up to 18 months.
- Interest Rates: Fora Financial utilizes factor rates ranging from 1.1 to 1.5. Unlike traditional interest rates, a factor rate is a multiplier applied to the loan principal to determine the total repayment amount. For example, a $100,000 loan with a 1.5 factor rate would require a total repayment of $150,000.
- Repayment Schedules: Daily or weekly basis, allowing businesses to manage smaller, more frequent payments.
Revenue Advance
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- Similar to a merchant cash advance, this option provides businesses with upfront capital in exchange for a percentage of future sales. This is particularly beneficial for businesses with fluctuating revenues, as repayments adjust based on income.
- Advance Amount Range: $5,000 to $1.5 million.
- Terms: Repayment continues until the advance, plus fees, is fully repaid. The duration varies based on the business's sales volume.
- Interest Rates: Revenue advances also operate on factor rates between 1.1 and 1.5. The total repayment amount is calculated by multiplying the advance amount by the factor rate.
- Repayment Schedules: A fixed percentage of daily or weekly sales, offering flexibility aligned with the business's cash flow.
Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.
Pricing information last updated March 3, 2025.
Qualifications
- Time in Business: A minimum of six months of operational history is required.
- Monthly Revenue: Businesses must generate at least $20,000 in monthly revenue.
- Credit Score: A personal credit score of at least 570 is necessary.
- Bankruptcy Status: Applicants should have no open or recent bankruptcies.
Application Process
- Initial Application:
- Online Submission: Begin by completing a simple online application form available on Fora Financial’s website. This form requires basic information about your business, such as contact details, industry type, time in operation, and monthly revenue.
- Documentation: Applicants are typically asked to provide recent bank statements—usually from the past three months—to give insight into the business’s financial health.
- Application Review:
- Evaluation Period: Once submitted, Fora Financial’s team reviews the application and financial documents. This evaluation focuses on assessing the business’s cash flow and overall financial stability rather than solely relying on credit scores.
- Credit Consideration: A notable aspect of Fora Financial’s process is that they do not perform a hard credit check during the initial application, ensuring that your credit score remains unaffected at this stage.
- Approval and Funding:
- Decision Timeline: Applicants can expect to receive a funding decision within 24 hours of submission.
- Funding Disbursement: Upon approval, funds are typically disbursed swiftly, often within 24 to 72 hours, allowing businesses to address their financial needs promptly.
- Post-Funding Support:
- Account Management: Borrowers have access to tools and resources to monitor their loan status and manage repayments effectively.
- Customer Service: Fora Financial offers ongoing support to address any questions or concerns throughout the loan term.
Product Review
Fora Financial distinguishes itself through its rapid funding process, flexible credit requirements, and unsecured financing options. Unlike traditional lenders, it offers a more accessible avenue for businesses that may face challenges securing funds due to credit issues or lack of collateral. However, potential borrowers should carefully consider the higher costs and short repayment terms associated with its financing products.
Some of its key features include:
- No Hard Credit Check During Application: Check your eligibility without impacting your credit score. Fora Financial doesn’t perform a hard credit inquiry during the initial application.
- No Collateral Required: For loans up to $1.5 million, Fora Financial provides unsecured business loans.
- Prepayment Discounts: Borrowers who repay their loan early may qualify for a discount on the remaining interest and fees.
- Higher Approval Rate for Lower Credit Scores: Fora Financial accepts borrowers with credit scores as low as 570, significantly lower than many competitors.
Best for: Businesses with irregular revenue patterns
Additionally, businesses that experience irregular revenue patterns—such as those in the hospitality, event planning, or seasonal industries—can benefit from Fora Financial’s Revenue Advance. This financing option allows repayments to adjust based on revenue, preventing businesses from being overburdened by fixed repayment schedules during slower months. Companies that plan to repay their loans early will also find Fora Financial appealing, as they offer prepayment discounts, which is a feature not commonly found among online lenders.
However, companies with tight cash flow or those that rely on predictable, fixed expenses may struggle with Fora Financial’s daily or weekly repayment schedules. Businesses that don’t generate revenue on a frequent basis—such as B2B service providers with longer payment cycles—might find the frequent payments too restrictive. Instead, these businesses might benefit from a line of credit from BlueVine or AmEx Business Blueprint, which allows more control over when funds are drawn and repaid.
Fora Financial
Fora Financial is a good option for businesses with irregular or seasonal revenue with its revenue advance loans.
Short-Term Business Loans
These loans provide a lump sum of capital to businesses for various purposes, such as expansion, inventory purchases, or managing cash flow.
Continue on Fora Financial website
Revenue Advance
Similar to a merchant cash advance, this option provides businesses with upfront capital in exchange for a percentage of future sales. This is particularly beneficial for businesses with fluctuating revenues, as repayments adjust based on income.
Continue on Fora Financial website
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