Fora Financial business loans: 2023 review

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Updated on Mar 08, 2023

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At a glance

Overall Score	4.6
Overview	Fora Financial has been around since 2008. The company was initially founded as Paramount Merchant Funding but changed its name in 2013. As of 2022, the company had loaned more than $3 billion to more than 35,000 businesses.
Loan amount:	$5,000-$1.4 million
Factor rate:	1.15-1.40
Term lengths:	4-15 months
Minimum credit score:	500

Who Fora Financial is best for

With a minimum credit score requirement of just 500, Fora Financial is a good fit if your credit isn’t perfect. The company is also a great option for business owners looking for an immediate infusion of cash: The company can issue approval decisions in as little as four hours and disburse funds within 72 hours.

Who Fora Financial may not be best for

If you’re looking for a long-term business loan, you’re better off looking elsewhere. Fora Financial’s repayment periods only stretch up to 15 months. Additionally, if you have great credit and a more established business (at least two years), you may be able to score a much more affordable interest rate with a traditional bank or credit union.

Fora Financial pros and cons

PROS

Fast approval and funding
Minimum FICO score of 500
Potential savings for early payback

CONS

Short repayment periods
Potentially high borrowing costs
Processing fee of 2.5% or higher

Business loan types offered

Small business loans

Amounts: $5,000-$1.4 million

Terms: 4 months-15 months

Factor rate: 1.15-1.40

Fora Financial’s small business loans are all designed for short-term capital needs. While some lenders offer business loans with much longer terms, with Fora you’ll need a fairly aggressive repayment plan. However, you won’t have to offer any collateral in exchange for the funds. Plus, once you have paid back 60 percent of the original amount, you’ll be eligible to borrow more money.

Revenue advance

- Amounts: $5,000–$1.4 million
- Terms: No fixed terms
- Factor rate: 1.15–1.40

Fora Financial’s revenue advance program will let you borrow money in exchange for paying back the company via your earnings. Many other lenders refer to this kind of borrowing structure as a merchant cash advance. Otherwise, the requirements for eligibility are the same as a traditional small business loan with the company.

Do you qualify?

The qualification standards for Fora Financial are fairly straightforward. The company works with companies involved in a wide range of industries — automotive, construction, restaurants and more – and there is no disclaimer regarding restrictions for certain types of industries. Fora Financial’s minimum requirements include:

In business for at least 3 months
Have at least $12,000 per month in gross sales
Minimum FICO credit score of 500
No open bankruptcies

What we like and what we don’t like

Fora Financial’s business model is appealing if you need access to capital and you’re in a time crunch. However, there are drawbacks to consider, too. Think carefully about what your business needs to grow — and how much you’re willing to pay to make your dreams a reality.

What we like

Fast approval and funding: If your business needs cash quickly, Fora Financial’s super-speedy application process is a big win. The company can approve and issue funds in 24 to 72 hours.
Low minimum credit score requirement: Many traditional lenders might turn away applicants with less-than-perfect credit, but Fora Financial will consider scores as low as 500.
Prepayment discount: If you can accelerate your payoff plan, you can save some cash. While Fora Financial typically charges a factor rate of at least 1.15, you may qualify for a prepayment discount if you pay early.

What we don't like

Short repayment periods: You’re going to need to pay back your funds fast with Fora Financial, which can translate to fairly sizable installments.
Potentially high borrowing costs: Fora Financial charges a factor rate of up to 1.40. To calculate the total cost of borrowing, you multiply the principal by the factor rate. So, if you borrow $25,000, that loan might cost as much as $35,000.
Processing fee: Fora Financial’s FAQs state they charge an up-front processing fee of “as low as” 2.5 percent. On a $100,000 loan, you would pay at least $2,500. However, this percentage is smaller than the origination fees some lenders charge.

How to apply for a loan with Fora Financial

Applying online for a loan with Fora Financial is simple. You’ll need to complete a one-page online application and share the last three bank statements from your business. Additionally, you’ll need to share your Social Security Number. After you submit your application, you’ll get a call from Fora Financial to further discuss your business’s needs.

Your initial application requires only a soft credit check that will not impact your credit. Once approved, Fora Financial then conducts a full credit check before issuing funds.

To speak with a representative from Fora Financial about the application process, call 877-419-3568.

Fora Financial FAQs

Based on nearly 700 reviews from past customers on Trustpilot, Fora Financial has a great reputation. The company earns 4.3 stars out of 5, and many customers have commented on the good service and communication.
You won’t find any APR ranges on the company’s website. Instead, Fora Financial charges a factor rate of 1.15 to 1.40. So, if you borrow $50,000, that comes out to somewhere between $7,500 and $20,000. Additionally, there is a minimum 2.5 percent processing fee, plus a wire transfer fee. On a $50,000 loan, that adds up to $1,250 or more.
If your business has been up and running for six months and you have at least $12,000 in gross sales each month, you meet the basic requirements for approval. Additionally, you’ll need a minimum credit score of 500 and no open bankruptcies. Of course, meeting minimum requirements does not guarantee approval.
Fora Financial is a direct online lender that specializes in two types of loans for businesses: short-term loans and revenue advances. The requirements are a bit more flexible than some traditional banks. However, Fora Financial does not offer some of the other tools your business will need, such as credit cards and checking accounts.

How Bankrate rates Fora Financial

Overall Score	4.6
Accessibility	4.9	Flexible amounts and low minimum credit score and time-in-business requirements give Fora a near-perfect score.
Affordability	4.4	Two fees and a fairly high maximum factor rate bring this score down.
Transparency	4.6	Minimum qualifications for loans are clearly listed; however, Fora doesn't report payments to credit bureaus.
Customer experience	4.3	Customers can fill out an application and manage their loans online.
Flexibility	4.6	Fora Financial offers multiple loan types and the ability to apply for extra funds.

Methodology

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:

Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
Affordability: This section measures interest or factor rates and fees.
Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
Customer experience: Customer service hours, online applications and app availability are considered in this category.
Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.