Early payoff discounts and limited eligibility requirements are bonuses for small business owners.
For many borrowers, Fora Financial’s relaxed underwriting criteria may make it easier to get approved for a loan. It's also quick, with most loans being funded within 72 hours after approval. However, its options are limited to just two types of loans, and it may be more expensive than other types of business financing available through other lenders.
finder.com's rating: 4.1 / 5.0
★★★★★
Bottom line: Fora Financial is one of our best picks for business loans. It offers fast turnaround funding for new or low credit small business owners that may not qualify elsewhere. Read our full review or check out our verdict.
| Min. Amount | $5,000 |
| Max. Amount | $1,500,000 |
| Loan term | 4 to 15 months |
| Min. Credit Score | 500 |
| APR | Varies |
| Requirements | 6+ months in business, $15,000+ gross monthly sales, no open bankruptcies |
Fora Financial is a relaxed requirement, low-doc lender offering two types of loans: short-term loans and revenue advances. Because of its relatively high borrowing costs, it’s best for bad credit borrowers and new small business owners that need fast cash and don’t qualify for a bank or other online loan.
To get a loan with Fora Financial, you’ll need to show at least $15,000 in monthly revenue, but you only need a credit score of 500 and 6 months in business to qualify. Instead of charging interest on its loans, Fora Financial charges a factor rate – typically between 1.15 and 1.9, depending on your creditworthiness and other criteria.
But its APRs can reach over 100% depending on your factor rate and term. This is higher than other types of longer-term loans which may start as low as 6% APR. On the plus side, you can pay your loan off early and get a 25% discount for doing so, which can help you save. Funding is fast – typically within 72 hours – and the company gets mostly high marks from customers.
While long term business loans may be cheaper, Fora Financial may be a viable option for newly established businesses or business owners with a low credit score that won’t qualify for business financing elsewhere.
Fora Financial’s small business loans offer business borrowers up to $1,500,000 with repayment terms up to 15 months. Repayments may be daily, weekly, bi-montly or monthly depending on the loan and your creditworthiness. But there are some important differences between a traditional term loan and a Fora Financial short-term loan to keep in mind.
For starters, your business is charged a factor rate, not interest, as with a traditional term loan. Unlike interest rates, factor rates are expressed as a whole number – for example, between 1.1 and 1.9. For example, if your loan is $10,000 and the factor rate is 1.5, the total cost of your loan will be $10,000 x 1.5, or $15,000.
And instead of making monthly payments as you would with a term loan, your business could be on the hook for weekly or even daily repayments. However, some borrowers may qualify for an early repayment discount up to 25% which can help you save.
Fora Financial uses factor rates, also called a flat fee, on both of its business loan options. Fora’s factor rates range from 1.1 to 1.9. To calculate your total loan cost, multiply the loan amount by the factor rate.
For example, if the loan is $100,000 and the factor rate is 1.5, your total loan repayment is $100,000 x 1.5 or $150,000. The same loan cost expressed as an APR depends on how fast you repay the loan. The longer the repayment period, the lower the APR.
| Loan amount | Factor rate | Repayment term | APR |
|---|---|---|---|
| $100,000 | 1.5 | 4 months | 152.08% |
| $100,000 | 1.5 | 8 months | 76.04% |
| $100,000 | 1.5 | 15 months | 40.55% |
OnDeck and ROK Financial are two more short-term loan options with competitive options similar to Fora Financial. See how they stack up.
Fora Financial business loans |
OnDeck short-term loans |
ROK Financial business loans |
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★★★★★ |
★★★★★ |
★★★★★ |
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Loan amount $5,000 – $1,500,000 |
Loan amount $5,000 – $250,000 |
Loan amount $10,000 – $5,000,000 |
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APR Varies |
APR 29.9% to 65.9% |
APR Starting at 6% |
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Loan term 4 to 15 months |
Loan term 3 to 24 months |
Loan term 6 to 120 months |
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Requirements 6+ months in business, $15,000+ gross monthly sales, no open bankruptcies |
Requirements Companies in business at least 1 year, $100,000+ in gross annual revenue, majority owner with a 625+ personal credit score, active business checking account |
Requirements Eligibility criteria 1+ year in business, $15,000+ in monthly gross sales or $180,000+ in annual sales |
Compare more business loans lenders
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 2.36 out of 5 stars, based on 11 customer reviews |
| BBB customer complaints | 3 customer complaints |
| Trustpilot Score | 4.4 out of 5 stars, based on 725 customer reviews |
| Customer reviews verified as of | 02 August 2023 |
Fora Financial receives generally good ratings, with many recent positive reviews on Trustpilot. Happy customers mention specific loan officers by name, citing helpful and attentive service during the application process. Less satisfied customers complain about high rates, loans for less than what was promised and a lack of customer support after loan closing. Fora Financial appears to respond to most complaints online.
To get started with Fora Financial, visit the website and fill out the online form to wait for a call back or reach out to the company on (877) 419-3568. However, you will have to wait for a call back after calling. Loan officers don’t answer the phone and you won’t be transferred to one.
If approved, you’ll need to submit your driver’s license, a voided check, and proof of ownership of your business.
Fora Financial doesn’t work with these types of companies:
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 receive loan funds directly into your business bank account.
A representative at Fora Financial told us that repayments vary depending on your situation. While daily or weekly repayments are common, some loans may allow bi-weekly or monthly repayments. If you’re required to make daily payments, you don’t need to make them on weekends or bank holidays.
Because both its loan options use a factor rate, your repayments will contribute to the flat fee and principal. Fora Financial offers early payoff discounts of up to 25% 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.
Yes. Fora Financial was founded in 2008 and is headquartered in New York city. It has supplied over $2 billion in working capital for 35,000 small businesses across 50 states. It has been accredited with the BBB since 2011.
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