Fora Financial

Fora Financial offers a valuable service for businesses in need of quick funding or those that might not qualify for traditional loans. Its flexibility and high loan limits are significant advantages. But potential borrowers should carefully consider the higher costs associated with its products.

Before committing to a loan or advance from Fora Financial, review the full terms, understand the total cost of borrowing (including all fees and the interest or factor rate) and consider how this fits with your business's financial situation and ability to repay. Compare offers from multiple lenders to ensure you're getting the best deal for your particular needs.

Fora Financial offers two main types of business financing products: revenue advances and small business loans. Both products are ideal for businesses that need fast working capital to expand, buy equipment, manage cash flow and more.

Fora Financial's rate structure is based on a “factor rate system,” which is typical for merchant cash advances and some types of business loans in the alternative lending space.

These rates typically range between 15 cents and 40 cents for every dollar you borrow. Fora Financial has early payback provisions, which can reduce your factor rate to as low as 10 cents for every dollar.

For example, suppose you borrow $10,000 from Fora Financial.

• If the factor rate is 30 cents on the dollar, the total amount you would owe is calculated as follows: $10,000 (principal) + ($10,000 * 0.30) = $10,000 + $3,000 = $13,000.
• If you’re able to pay back early and qualify for a reduced factor rate of 10 cents on the dollar, the calculation would be: $10,000 (principal) + ($10,000 * 0.10) = $10,000 + $1,000 = $11,000.

As you can see, the cost of borrowing can vary significantly based on the factor rate you’re offered and whether you can take advantage of early repayment options. This rate structure is different from typical interest rates, so consider the total repayment amount and how it fits into your business's budget.

Fora Financial doesn’t have any prepayment penalties, so you’re not dinged if you pay your loan off early. In fact, in some cases you can qualify for a rate discount by prepaying.

However, it charges an origination fee that can be “as low as 2.5%.” Origination fees are common in the business loan space and are typically deducted from the loan amount before it’s disbursed to you. Fora Financial’s website doesn’t clearly disclose just how high this fee can go.

Also, there may be other fees depending on the specific loan product and terms, such as late fees. Review your loan agreement carefully to understand all applicable fees.

To be eligible for a Fora Financial loan, you’ll need to meet the following criteria:

• 570 FICO score
• $20,000 in monthly revenue
• 6+ months in business
• No open bankruptcies

If you meet this criteria, you can apply for a Fora Financial loan by filling out an online application. You’ll then have a short consultation with a capital specialist to discuss your funding options. You can get a decision within four to 24 hours and receive funds within 72 hours.

If you run into issues or have questions, you can call customer support at 877-419-3568.

Fora Financial offers competitive borrowing options, but its products might not be suitable for every business. Here’s how its small business loan stacks up against Bank of America’s term loan and Bluevine’s line of credit.

Fora Financial is a legitimate company operating in the alternative lending space. It was founded in 2008 and says it has provided more than $4 billion in funding to over 55,000 businesses across various industries. This significant amount of funding demonstrates its capacity and reach in the small business lending market. To date, there have been no widely reported legal actions or scandals involving Fora Financial.