Fora Financial Review - Business Loan
Application & Approval Process
Customer Support & Benefits
About Fora Financial
Entrepreneurs Jared Feldman and Dan Smith were college roommates with an innate passion for financing small businesses. In 2008, they decided to combine their knowledge in the small business sector and savvy financial skills and founded Fora Financial in New York. The company was previously known as Paramount Merchant Funding.
Fora Financial offers funds relatively faster than many other online lenders. It provides business loans in the form of merchant cash advances and short-term loans with lenient credit qualifications. The loans aren’t cheap, but they are not ridiculously expensive either, with rates falling a little under the median.
This lender can help a company with no access to less expensive capital. Fora Financial is an ideal go-to lender for a business owner struggling to get a loan due to bad credit scores. However, the borrowing company will have to ensure that they can keep up with the repayment.
- Accepts bad credit score
- Quick funding
- Easy application
- Free no-obligation quote
- A little pricier
- Additional fees
- Processed more than 45,000 transactions and funded over $2 billion in financial solutions to 25,000+ customers (small businesses).
- Simple one-page application which requires just a few months of bank statements. Approval is granted in less than 24 hours.
- Early repayment incentives.
- Requires customers to make daily or weekly repayments to their loan.
- Offers to refinance the business’s existing debt of up to 50% of the loan value.
Application & Approval Process
Fora Financial offers an expedited application and approval process, which only requires completing a single page form. Once it has been submitted, their representative will call the applicant for more information such as monthly sales, how long the business has been operating, contact information, etc. Here, the representative will also answer any burning questions. You can apply for any amount from $5,000 to $500,000. They may do a quick soft pull on business’s personal credit and offer an estimate quote along with details of any potential fees, term lengths, and options.
If the business wishes to continue the process, Fora Financial will forward the application to the underwriting department for verification and finalizing all the information.
Fora Financial does not require a lot of documentation for securing the loan. Initially, the business will have to submit three months of bank statements to confirm their gross monthly income. For Merchant Cash Advance, the gross monthly income on credit or debit card sales must be $5,000. Whereas, for small business loans option, it must be $12,000 in monthly gross sales and monthly average bank balance of $1,000 or more.
Fora Financial may request more documentation, including the current month’s bank statement to date, profit and loss statement, tax returns, and a balance sheet. Additionally, the borrower will need proof of ID such as valid driver’s license and confirmation of business ownership.
If everything is in order, the loan will be officially approved, and Fora Financial will transfer the loan amount into the business’s preferred bank account. It can take up to 24 hours for the final decision to come through, and the funds get transferred within 72 hours of approval.
According to Fora Financial’s website, the overall time from application to funding is approximately 4 days.
Rates & Fees
Getting the loan with Fora Financial is reasonably straightforward, but this convenience comes at a price. The borrower may repay a fee that can cost from 1.1 to 1.3 times the total amount of capital extended to them. In other words, they may end up paying from $0.10 to $0.30 in fees for every dollar they borrow.
However, Fora Financial offers benefits such as early repayment incentives to its customers. It is a good option because paying off the loan earlier will help them save money by avoiding the interest rate of the full loan term.
All the loans offered by Fora Financial come at a fixed fee from 10% to 30% of the total borrowing amount. There is also an origination fee that can vary from 1% to 4% of the total loan amount. However, there is no requirement for collateral as Fora Financial provides unsecured loans.
Fora Financial offers payment terms up to 15 months. They provide a shorter-term lending facility to the businesses. It offers quick funding, which means the borrowing company can qualify for a specific loan amount and repay it without worrying about any fluctuation or increase in the interest rate. There is also an option for faster repayment.
There are two types of business loans offered by Fora Financial, which are:
Merchant Cash Advances
This is a unique one; a business gets merchant funding in the form of the lump-sum amount and, in return, transfers a percentage of its credit card transactions. Therefore, instead of charging any interest, Fora Financial applies a one-time factor rate charge. For example, if a business borrows $50,000 and have a factor rate of 1.2 or 20%, it will end up repaying $60,000 (50,000 * 1.2).
Short-term loans work just like any other loan. The only difference is that the lending term is up to 15 months, which is shorter than what most lenders offer. Unlike Merchant Cash Advances, there is no per-transaction fee, and the borrower pays fixed monthly installments with fixed interest rates throughout the loan term.
Customer Support & Benefits
You can contact Fora Financial via phone, email, and they also have a strong social media presence on a number of different platforms. The company has very high-quality customer support; many borrowers claim in their reviews that Fora Financial is transparent, honest, and easy to contact over the phone. Also, the representatives do not try too hard or push for an upsell.
There is a basic FAQ section on the website with answers to general topics such as the different types of loans which are available, how to apply for a business loan, documentation required, payment terms, etc.
Existing clients can also be rewarded through the “refer a business” community benefit. In return of a current borrower recommending new business to Fora Financial, if the referred company manages to get the loan, the referring party will receive up to $500.
Address: 519 8th Avenue, 11th Floor, New York, NY 10018
Email: [email protected]
Online Contact Form
Social Media: Facebook, Twitter, LinkedIn, and Instagram