Fora Financial offers two types of loans; Small Business Loans and Merchant Cash Advances. While a business loan from Fora Financial has less strict requirements than many business loan providers, there are still some criteria that you’ll need to meet to be eligible for consideration.
Small Business Loan
Fora Financial provides small business loans of between $5,000 and $1,400,000. There are no restrictions on use, and the maximum loan term is 15 months. A huge perk of a small business loan from Fora Financial is that if you repay the term early, you receive a discount. This bonus is very uncommon for a small business loan. You do not need to provide collateral to be eligible for a small business loan. Requirements for a Fora Financial Small Business Loan are:
- At least 6 months of operating
- No open or dismissed bankruptcies within the past 12 months
- At least $15,000 in gross sales per month
Merchant Cash Advance
If your business makes a lot of trade via credit card and you have an unpredictable cash flow, then a merchant cash advance could be a good option. Merchant Cash Advances are available from $5,000 to $1,400,000, with approval based on factors other than just credit rating. If your application is successful, you will receive a lump sum. Loan repayments are made to Fora Financial based on a percentage of all credit card transactions. As with small business loans, early repayments attract a discount. Requirements for a Merchant Cash Advance are:
- At least 6 months of operating
- No open or dismissed bankruptcies within the past 12 months
- At least $5,000 of credit card sales each month
Fora Financial uses factor rates instead of APR when calculating the total amount repayable. A factor rate is shown as a decimal instead of a percentage, with factor rates usually between 1.1 and 1.8. To determine how much you have to repay, multiply the borrowed amount by the factor rate. This differs from APR as APR is always shown as an annualized amount.
Fora Financial does not disclose factor rates until after the completion of prequalification. Having been through the prequalification process, we have seen that factor rates offered by Fora Financial are between 1.1 and 1.4, which is average for Merchant Cash Advances. Merchant Cash Advances are usually one of the more expensive forms of business loans, so ensure that you have checked rates available via Fora Financial small business loans as well.