Overview

Fora Financial, an online lender based in New York, provides small-business loans and merchant cash advances. It may be a suitable option for businesses seeking short-term working capital or those unable to qualify for traditional bank financing. While Fora offers large maximum loan amounts, it charges interest based on a factor rate, making it challenging to compare costs with other lenders. This review will focus specifically on Fora Financial’s term loans.

Loan Features

Fora Financial provides short-term financing options such as small business loans and revenue advances. Loan amounts range from $5,000 to $1.5 million, and the lender uses factor rates to calculate the total cost of the loan. Fora Financial can be a great option if you need quick access to funding. The application process is simple—just complete a one-page form and upload three months’ worth of bank statements. After approval, you could receive your funds in as little as 24 hours, though it may take up to 72 hours.

There are no prepayment penalties for business term loans. In fact, eligible borrowers can receive prepayment discounts. Additionally, Fora allows you to increase your funding amount after repaying at least 60% of the original loan.

Currently, Fora Financial only offers a term loan and a revenue advance, which is similar to a merchant cash advance. If you’re seeking equipment financing, lines of credit, or other types of loans, you’ll need to explore other options.

Rates and Repayment Options

Fora Financial does not provide APR ranges on its website, so you’ll need to speak with a representative to discuss fees and interest rates, and carefully review your loan offer before signing.

Repayments are required in daily or weekly installments, which could limit your business’s cash flow. In contrast, many other online lenders offer monthly repayment options. Fora Financial applies a factor rate to its short-term loans to calculate interest. To determine the total repayment amount. Multiply the factor rate and the loan amount. If your 12-month, $10,000 loan has a factor rate of 1.1, the total repayment amount would be $11,000.

Factor rates can be confusing and make it difficult to compare loan costs with other lenders. It’s a good idea to convert the factor rate into an APR to better understand your borrowing costs.

Eligibility Requirements

Fora Financial has clear qualification standards and works with businesses across various industries, including automotive, construction, and restaurants, with no specific industry restrictions. The minimum requirements include:

• At least 6 months in business
• A minimum of $240,000 in annual gross sales
• A minimum FICO credit score of 570
• No open bankruptcies

Customer Support

Find answers to some of the most commonly asked questions about financial products in the FAQ section, helping you save time and stay focused on your business. If you don’t see your question, feel free to contact Fora Financial by email at info@forafinancial.com or by phone at (877) 419-3568.

Bottom line

Fora Financial is a direct online lender that specializes in two kinds of business loans: short-term loans and revenue advances. Its requirements are more flexible than those of traditional banks. If your business needs fast cash, Fora Financial’s quick application process is a major benefit, with approvals and fund disbursements happening within 24 to 72 hours. However, Fora Financial does not provide additional business tools like credit cards and checking accounts.