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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.
$5,000
Min. Amount
$500,000
Max. Amount
Product Name | Fora Financial business loans |
---|---|
Min. Amount | $5,000 |
Max. Amount | $500,000 |
Loan Term | 4 to 15 months |
Min. Credit Score | 670 |
APR | Varies |
Requirements | 6+ months in business, $12,000+ monthly revenue, no open bankruptcies |
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.
Here's how Fora compares to other business loans available to new businesses or bad credit.
BBB accredited | Yes |
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BBB rating | A+ |
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.
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:
If you want to apply for a. merchant cash advance, you must have at least $5,000 in monthly credit and debit card sales.
Applications with Fora Financial are fairly straight forward.
If approved, your loan could be funded in as little as three business days.
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.
Answers to common questions about borrowing from Fora Financial.
No. Fora Financial business loans are unsecured, which means no collateral is required to secure the loan.
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.
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.