Fora Financial
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Fora Financial is a direct lender offering merchant cash advances and small business loans through their online platform. The New York company, founded in 2008, was formerly Paramount Merchant Funding. They serve many industries, including auto, transportation, medical, retail, restaurant, and manufacturing.
The company offers approval in just 24 hours and funding within three days. There’s no collateral required and Fora Financial uses criteria in addition to credit to make their decisions about whether to approve an applicant. There are no prepayment penalties; in fact, this lender offers an early payoff discount.
Loan Types Available
Fora Financial specializes in small business loans and merchant cash advances.
Merchant Cash Advance
This type of financing is great for companies that do a lot of business via credit card and have multiple customers. Seasonal businesses that need to invest money into additional inventory before their busiest times find that a merchant cash advance provides the capital they need with the right kind of flexible repayment requirements. Retail, service, and restaurant businesses find merchant cash advances especially valuable since they do a great deal of business via credit card transaction.
- Loan Amounts: $5,000 to $500,000
- Loan Terms: Depends on credit card sales volume; repayment is a percentage of every future credit card transaction until loan is paid in full
- Requirements: Must be in business at least six months and have a minimum of $5,000 in credit card transactions per month
With a merchant cash advance, you’ll get a lump sum of money that represents a certain percentage of your future invoices or sales. There are no set terms or restrictions on your use of funds from a merchant cash advance through Fora Financial. Loan payments are processed as a percentage of each credit card transaction, to you’ll pay off the merchant cash advance as you make new sales.
Since repayment is based on sales, a business doesn’t have to adjust their budget during slow times to meet the obligations of a set monthly loan payment.
Although Fora Financial doesn’t disclose merchant cash advance fees on their website, they do offer a free no-obligation quote so you can understand how much this type of loan may cost before pursuing it as a funding option.
Small Business Loan
This type of loan is ideal for small businesses that need fast access to capital so they can pay bills, purchase inventory, develop new ideas, hire key employees, or buy equipment. You can use a small business loan for anything, without restrictions.
Fora Financial custom tailors each small business loan to meet the needs of the company. Loan amounts, terms, and requirements vary.
- Loan Amounts: $5,000 to $500,000
- Loan Terms: Up to 16 months
- Requirements: At least 12 months in business, no open bankruptcies or dismissed bankruptcies within the past year, minimum of $15,000 in gross sales
With a small business loan, you’ll receive the agreed-upon amount within 72 hours of approval. To pay back the loan, you’ll make a level monthly payment until the debt is paid in full. Fora Financial’s small business loans have a maximum loan term of 16 months, but if you pay off the loan early, you could get an early payoff discount.
Fora Financial reports loan payments to all three credit bureaus, so making on-time payments is crucial to maintain and improve your credit rating.
Fora Financial Pros
- 4.5 stars out of 5 from current and past customers on TrustPilot
- Funding in as little as 72 hours
- Early payoff discounts
Fora Financial Cons
- No information on website about factor fees or interest rates
- Only offers merchant cash advance or small business loan
- Longest loan term is 16 months, which may make monthly payments on larger amounts difficult for small businesses to handle
Application Process
You can get a free quote with a soft pull of your credit file in just a few minutes on the Fora Financial website. To make a formal application for a merchant cash advance or small business loan, you’ll supply Fora Financial with three months of bank statements, three months of credit card statements (merchant cash advance only), and a one-page application form. The loan underwriters may also request the company’s balance sheet, profit and loss statement, and tax returns.
Fora Financial’s underwriters review your application and approve or deny you for a merchant cash advance or small business loan within 24 hours.
While Fora Financial does conduct a hard pull of credit before extending an official offer for a loan or merchant cash advance, they consider many aspects of the company’s overall financial health when deciding whether to approve or deny an application. If approved, you’ll receive funds within 72 hours.
Privacy & Security
Fora Financial has an average TrustPilot score of 4.5 out of 5 from over 500 customer reviews. 83% of customers rated the service as “excellent” and 11% rated it as “great.” They take time to respond to the few negative reviews with thoughtful and thorough answers.
The company also has an A+ rating with the Better Business Bureau (BBB).
Their privacy policy states that they may share your contact information for third-party advertising, but you can opt out by emailing them at: opt-out@ForaFinancial.com.
Customer Support
Fora Financial seems dedicated to customer service. They provide a contact information form so you can contact them with questions via their website. You can also speak with a customer service representative by calling (855) 326 – 8523 or emailing customerservice@forafinancial.com.
Final Thoughts
With loan amounts ranging from $5,000 to $500,000 and free, no obligation quotes available on their website, you can find out how much capital you can get for your small business in just a few minutes, without risking a hard pull of your credit files.
Fora Financial has a reputation for helping small businesses get the capital they need by providing merchant cash advances and small business loans. Their willingness to consider factors other than credit scores sets them apart from traditional banks, as does their ability to fund loans in less than 72 hours.
Address
519 8th Ave., 11th Fl, New York, NY 10018