Fora Financial business loans review
Get funding of up to $500,000 with the benefit of early repayment discounts for qualifying borrowers.
Bottom line: A prepayment discount might be appealing to businesses that are quickly gaining sales. But the high fees and short terms can make borrowing from Fora Financial more expensive than its competitors if you’re not able to pay off your loan early.
- Early repayment discount
- Qualify with just six months in business
- Accepts bad credit
- Not transparent about costs on website
- Approval may take up to three days
- Daily or weekly repayments common with this type of loan
Fora Financial rates, fees and terms
Fora Financial isn't completely transparent about the cost of its short-term loans. In the past, it's charged a fixed fee rather than interest. This was represented by a factor rate of 1.1 to 1.3, which you multiply by the funds you borrow to calculate the total amount you owe. Its small business loans also came with an origination fee of 2% to 4% of the loan amount.
We weren't able to confirm the accuracy these fees in February 2021. However, we could confirm that it offers a discount on the repayment fee fee of 10 cents on the dollar if you repay the loan early.
Loan terms run as long as 15 months, which can translate into high repayments. A loan of $500,000 over a 15-month term gives you a monthly cost of around $3,333 — before fees.
How Fora compares to other lenders
Here's how Fora compares to other business loans available to new businesses or bad credit.
Fora Financial reviews and complaints
|BBB customer reviews||1.7 out of 5 stars, based on 11 customer reviews|
|BBB customer complaints||4 customer complaints|
|Trustpilot Score||4.4 out of 5 stars, based on 565 customer reviews|
|Customer reviews verified as of||22 February 2021|
Fora's most recent reviews on its Trustpilot and BBB pages are mainly negative — with multiple customers complaining about high rates. However, some borrowers were pleased with customer service and the simple application process.
How to qualify
The best way to find out what type of loan you’re eligible for with Fora Financial is to complete its online form and request a free quote. But here are the three primary points of eligibility Fora Financial expects you to meet:
- At least six months in business
- Monthly revenue of $12,000 or more
- No open bankruptcies
If you want to apply for a. merchant cash advance, you must have at least $5,000 in monthly credit and debit card sales.
How the application works
Applications with Fora Financial are fairly straight forward.
- Fill out a simple form on its website.
- Wait for a loan specialist to contact you and verify your information.
- Submit a handful of documents, including a copy of your driver's license, a voided check, proof of business ownership and three months of business bank statements.
If approved, your loan could be funded in as little as three business days.
What sets it apart
Fora Financial is a nontraditional online lender, which means its eligibility criteria and funding practices aren’t quite as slow and stringent as those of big banks and other traditional lenders. It works with businesses as new as six months, with as little as $12,000 in monthly gross sales or $5,000 in credit card receipts.
If you're not sure about the high fees, or just want to compare more options, read about our picks for the best business loans to find competitive rates and terms that work for your financial needs.
Frequently asked questions
Answers to common questions about borrowing from Fora Financial.
Do I need to offer collateral to secure my loan with Fora Financial?
No. Fora Financial business loans are unsecured, which means no collateral is required to secure the loan.
I've already received a loan through Fora Financial but need additional capital. How do I apply?
To apply for additional funds, speak to a member of Fora Financial’s Relationship Management team about the current terms of your loan and the possibility of obtaining more capital. Your loan will be reviewed, as well as the last six months of revenue for your business.
Business loan ratings
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.