Forward Financing

3.5/5 stars

Revenue-based financing “for Main Street” with broad eligibility requirements.

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Pros

Eligibility: Very broad requirements mean most business will qualify
Fast Funding: Like other lenders in this category, you can get funded in days, rather than weeks.

Cons

Size: Smaller loan limits than competitors, with a $300k cap
Repayment terms: Short repayment period (3-12 months) and daily or weekly payments
Cost: Like other lenders in this category, the total cost of the loan may be higher than what traditional lenders provide.

The Bottom Line

It’s worth seeing what you’re offered, but think carefully before accepting.

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Loan Types

Revenue-Based Loan

Description: Fixed loan amount with payments as a percentage of revenue up to a cap.
Loan Amounts: Up to $300k
Fees: Variable; defined as a set percentage of the loan amount.
Repayment: Daily or weekly over a period of 3-12 months

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 7, 2024.

Qualifications

Location: Operating in the US for 1+ years
Revenue: Minimum of $120,000 annual revenue
Credit score: 500+ personal credit score

Application Process

To apply for a loan from Forward Financing, you’ll need the following information:

Owner’s name & social security number
Business name & Tax ID
Last few months of the business’ bank statements

A credit check may be run on the owner.

Product Review

When it comes to revenue-based financing, it’s tough to be a traditional business. While companies in hot new sectors like software or e-commerce are courted by specialty providers like Wayflyer or Lighter Capital, most companies are left out in the cold.

Here’s where Forward Financing comes in. With no requirements about your sector and relatively modest business requirements ($120k annual revenue, personal credit score of 500+) you’re likely to get an offer from these folks so long as you’re earning a moderate amount of revenue.

Along with broad eligibility, however, come less favorable terms. It starts with the application process: unlike its competitors, Forward Financing will want to run a credit check on you (the owner) personally.

Then come the terms of the loan itself: smaller in size (max $300k) with shorter terms (3-12 months) and more frequent payback periods (daily or weekly). In short, you may end up with a very expensive, relatively short-term loan.

So, once you get your offer, scrutinize it a bit. If you pay back on the schedule they’ve described, how high will your APR be? Most likely, it’s higher than the roughly 10% fee they charge. If you are able to get a conventional small business loan or line of credit, you’ll probably end up spending less. But, then, you’d be on the hook for the same monthly payment every month rather than paying a proportion of your revenue.

What we love about Forward Financing

Broad eligibility: No requirements that you work in a particular industry, and relatively low amounts of revenue required.
Speed and Convenience: Like others in this category, you may be able to get money in your account within days
Flexibility: Like with any revenue-based loan, you’ll pay back more when you’ve got lots of revenue and less when you’ve got a little.

Best for: Small businesses that don’t qualify for other options

If you’ve got your heart set on a revenue-based loan but don’t qualify for more specialized lenders, Forward Financing probably has your back. This means you’ll be able to get money fast, with minimal effort, and with flexible repayment terms.

However, the usual warning about the cost of revenue-based financing goes double for Forward Financing. Because they have such low barriers to qualification, they usually offer less favorable rates. And, since they run a personal credit check, you don’t necessarily want to enter your information just in case the offer is really strong.