Fora Financial provides short-term loans and merchant cash advances to businesses. However, the company is not transparent about how much these services will cost you or what exactly is required to get approved. This company is worth checking with if your business needs funding because getting a quote only requires a soft credit pull. However, other lenders may provide more information about their rates and requirements before applying.
Fora Financial overview
Fora Financial is an online-only lender specializing in small business loans. It also offers merchant cash advances, but the company says it plans to discontinue that product. Merchant cash advances were still included on the company’s website as of publication, so we’ll talk about them briefly, below.
Its small business loans are designed for businesses that need relatively small loan amounts, quickly. You can use these funds for a wide range of purposes, such as generating payroll, paying your tax bill or expanding your business. It’s worth noting, however, that other online lenders may provide a faster turnaround, as soon as the next business day compared with Fora Financial’s 72 hours.
If your business accepts credit card transactions, another option for now is a merchant cash advance. This product offers a lump sum payment similar to a small business loan, however you repay it over time with a percentage of your credit card transactions until it’s paid off rather than having set monthly payment amounts. This allows you to repay it according to a schedule that works for your business’s actual income, whether it’s at a high point or a low point. Merchant cash advances are typically an expensive way to borrow due to their fast repayment terms.
In order to qualify for a small business loan from Fora Financial, you’ll need to meet the following criteria:
- Generate at least $12,000 in monthly sales.
- Be in business for at least 6 months
- Not have any open or dismissed bankruptcies within the past year
Fora Financial does not disclose if there are any other business or personal credit requirements and did not respond to requests for information. However, the company may check both your personal and business credit reports as a part of the application process. Getting a quote, however, won’t affect your credit.
Features, rates, terms
Fora Financial fails to provide as much transparency as some other online lenders. It fails to disclose its rates until you've qualified for a loan.
- Loan amounts between $5,000 - $500,000 for terms ranging from 3 - 15 months.
- Origination fee: 2%
- Factor rates not disclosed
It is notable that Fora Financial offers small business loans and merchant cash advances up to $500,000, which is comparable to financing offered by other online lenders. Small business loans come with term lengths between three and 15 months that must be repaid in daily or weekly payments. These terms and repayment schedule are quite short compared with many other business lenders, so you’ll need to be certain that you can make your payments before you sign on the dotted line to take out the loan.
Fora Financial does provide an early payoff discounts for both of its products, however it only specifies that the discount is worth up to 10% off in the case of the small business loans. Collateral is not required.
Fora Financial provides no information on its website about how much the small business loan or the merchant cash advance will cost. The company says it charges a factor rate, but declined to share exact rates. Factor rates are different from the more common annual percentage rate (APR). They are expressed as a decimal and apply to the original loan amount, not a gradually reduced balance as with APR.
Fora Financial makes it easy to apply for a loan. All you need to do is fill out a one-page online application and submit at least three months’ worth of bank statements via email or fax in order to get the process started. If you’re applying for a merchant cash advance, you’ll need to submit at least three months’ worth of credit card receipts in addition to the bank statements. Depending on your business, you might also need to submit your business’s profit and loss statement, tax returns, or a balance sheet.
After you submit the paperwork, you can monitor the progress of your business funding online through the company’s portal. If you are approved for a loan, you’ll need to submit at least three more items before you can get your cash:
- Your driver’s license
- Proof of business ownership
- A voided check
Should you apply for Fora Financial financing?
We'd only recommend Fora Financial if you're looking for short-term business financing and you need it right away. We don't recommend Fora Financial for borrowers who can qualify with other online lenders that offer more transparency into its rates and product details. However, it’s worth at least checking with Fora Financial to see what terms and rates it can offer you if you’re in need of financing. Make sure to vet any financing offers carefully against other small business lenders. That way, you won’t be sacrificing your business’s short-term needs against its long-term goals.
The information in this article is accurate as of the date of publishing.