Fora Financial business loans review

Fora Financial small business loans

Fora Financial’s small business loans offer business borrowers up to $1,500,000 with repayment terms up to 18 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 1.5. 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 which can help you save.

Rates, fees and terms

• Loan amount: $5,000–$1,500,000
• Loan term: Up to 18 months
• Factor rate: 1.1–1.5
• Collateral: Not required
• Repayment schedule: Weekly or daily

How factor rates work

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 1.5. 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.

Fora Financial reviews and complaints

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.

How to apply with Fora Financial

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.

Eligibility requirements

• Three most recent bank statements
• Annual revenues
• Tax returns if you’re seeking over $150k
• P&L statement if you’re seeking over $250k
• Balance sheet if you’re seeking over $250k

If approved, you’ll need to submit your driver’s license, a voided check, and proof of ownership of your business.

Ineligible industries

Fora Financial doesn’t work with these types of companies:

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

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 receive loan funds directly into your business bank account.

How repayment works

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.

Is Fora Financial legit?

Yes. Fora Financial was founded in 2008 and is headquartered in New York city. It has supplied over $4 billion in working capital for 55,000 small businesses across 50 states. It has been accredited with the BBB since 2011.