Fora Financial business loans review

Fora Financial small business loans

A small business loan from Fora Financial allows you to pay back your loan over a set period — up to 15 months. But there are some important differences between a traditional term loan and one of Fora Financial's short-term loans.

Your business will be charged a factor rate, not interest, when you work with Fora Financial. And rather than monthly payments, your business will make daily payments. For seasonal businesses, or businesses that have frequent gaps in revenue, it may be better to borrow a merchant cash advance so you can take advantage of fluctuating payments based on sales.

However, you may qualify for an early repayment discount. This helps you save on the total cost of your loan because the fee for factor rates is set when you borrow. So unlike other lenders with similar options, Fora Financial may help you avoid higher costs if your business is able to repay your loan before its due date.

Short-term loan rates, fees and terms

• Loan amount: $5,000–$500,000
• Loan term: Up to 15 months
• Factor rate: 1.1–1.9
• Collateral: Not required
• Repayment schedule: Daily payments

Fora Financial merchant cash advances

Merchant cash advances allow you to get an advance on your credit or debit card sales. Unlike a term loan, payments are based on your sales. For example, Fora Financial may take 10% of your daily sales. This means there is no set repayment period, and if your business suffers a gap in cash flow, you won't get behind.

But it also means that there's no end to your contract. It takes as long as it takes — so be prepared to pay less in a slow season and more when your business is booming.

The amount you can borrow from Fora Financial depends on your financial statements. And while payments are taken out of your daily sales, they won't be taken from your account on weekends or bank holidays. If you're able to make extra payments, you should. Like its small business loans, Fora Financial offers an early payoff discount on its merchant cash advances.

Merchant cash advance rates, fees and terms

• Loan amount: $5,000–$500,000
• Loan term: Not set
• Factor rate: 1.1–1.9
• Collateral: Not required
• Repayment schedule: Daily payments

See how Fora Financial compares to more providers

OnDeck and ROK Financial are two more short-term loan options with competitive options similar to Fora Financial.

OnDeck offers slightly smaller loans, but it has a lower annual revenue requirement than Fora Financial. It also has slightly longer loan terms and offers weekly repayments, which gives your business more flexibility when paying back a loan on line of credit.

ROK Financial is a connection service, not a lender, but it works with a wide variety of newer businesses. You'll only need to be in business for three months to qualify for some of the lenders in its network. However, you will need to meet a higher monthly gross sales requirement of $15,000.

★★★★★

Finder Rating: 4.1 / 5

Check eligibility
Loan amount $5,000 to $500,000
APR Varies
Loan term 4 to 15 months
Requirements 6+ months in business, $12,000+ monthly revenue, no open bankruptcies

★★★★★

Finder Rating: 4.6 / 5

Check eligibility
Loan amount $5,000 to $250,000
APR Starting at 35%
Loan term 3 to 24 months
Requirements 600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account

★★★★★

Finder Rating: 4.7 / 5

Check eligibility
Loan amount $10,000 to $5,000,000
APR Starting at 6%
Loan term 6 to 120 months
Requirements Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales

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Fora Financial reviews and complaints

Fora Financial receives decently average ratings, but its most recent reviews are negative. Customers frequently complain about poor customer service and high costs. Fora Financial frequently doesn't respond to complaints or negative reviews, making it difficult to determine how seriously it takes problems previous customers have had.

How to qualify

Fora Financial has slightly different requirements depending on the type of loan your business needs. If your business has any outstanding debts, Fora Financial suggests that you wait before applying.

Small business loans

• At least six months in business
• At least $12,000 in gross monthly sales
• No open or dismissed bankruptcies in the last year

Merchant cash advances

• At least six months in business
• At least $5,000 in monthly credit card sales
• No open or dismissed bankruptcies

Ineligible industries

Fora Financial won't work with these businesses or industries:

• Accounting or financial institutions
• Adult entertainment
• Auto or real estate sales
• Gambling or casinos
• Lawyers
• Nonprofits

How the application works

The application process is online and quick — it should only take a few minutes to fill out your information and submit any necessary documents.

To apply with Fora Financial, you will need to provide your business's three most recent bank statements as well as your driver's license, a voided check and proof of business ownership.

For a small business loan, Fora Financial also requires you to submit your annual revenue, tax returns, profit and loss statements and balance sheets.

For a merchant cash advance, Fora Financial requires you to submit three months of credit card and bank statements. It may also request tax returns, balance sheets or a profit and loss statement.

How funding works

Once you submit your information, Fora Financial generally makes an approval decision within 24 hours. Funding can take up to 72 hours after approval. You will receive your loan funds directly into your business bank account.

How repayment works

Fora Financial requires your business to make payments each business day — which means your business won't need to repay on weekends or bank holidays.

Because both loan options use a factor rate, your payments will contribute to the flat fee and principal. But Fora Financial offers early payoff discounts of 10% to 30% of the original cost of your loan. Not all borrowers qualify, however, so reach out to Fora Financial to confirm your business is eligible.

Late fees vary based on your loan contract. If you're unable to make a payment, contact Fora Financial to determine your best options.

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. This makes it easier for newer business to qualify for funding.

Along with its early payoff discount, it's one of the better short-term options out there for business owners.

But because Fora Financial doesn't offer a standard term loan, take the time to compare more lenders that may be able to fund your business — without the potentially high cost.