Fora Financial Business Loans: 2025 Review

Overview

The bottom line:

Fora Financial business loans have flexible qualifications and are quick to fund, though interest rates may be higher than other lenders.

Loan details

Min. Loan Amount

$5,000

Min. Term Length

4 months

Max Loan Amount

$1,500,000

Max Term Length

18 months

Qualifications

Min. credit score

570

Min. Time in Business

6 months

Min. Annual Revenue

$240,000

Pros & Cons

Pros

Cash can be available quickly.

Get a discount for prepaying.

No collateral required.

Low minimum credit score requirement.

Cons

Charges a factor rate that makes it more difficult to compare costs with other lenders.

Can’t build business credit.

Longest loan term is 18 months.

Charges an origination fee.

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Fora Financial, a New York-based online lender, offers access to

small-business loans

and merchant cash advances. Fora Financial may be a good fit for businesses looking for short-term working capital, as well as those that can’t qualify for traditional bank financing.

Although Fora offers large maximum loan amounts, it charges interest as a factor rate, which makes it difficult to compare costs to other lenders. In this review, we’ll focus on Fora Financial’s term loans.

Fora Financial loan qualifications

C redit score : 570 or higher.

Time in business: 6 months

Annual revenue: $240000 (at least $20,000 per month) or more.

Consider Fora Financial if you:

✔️ Need fast cash.

✔️ Don’t meet the eligibility requirements of other lenders.

✔️ Want short-term financing for working capital.

Not a fit? Consider these lenders instead.

...

Fora Financial term loan details

Loan amount	$5,000 to $1.5 million.
Estimated APR range	Fora quotes interest as factor rates — which range from 1.1 to 1.9.
Fees	Origination fee as low as 3% of the loan amount. One-time wire transfer fee. No prepayment penalties; depending on your loan offer, you may be eligible for prepayment discounts.
Terms	Up to 18 months.
Repayment schedule	Daily or weekly.
Funding speed	Application approval within 4 hours. May take up to 72 hours to receive funds.

» Learn more about:

factor rates

origination fees

prepayment penalties

Where Fora Financial stands out

Quick access to funds

Fora Financial can be a good option if you need access to fast funding. You can apply online by filling out a one-page application and uploading three months of bank statements.

Once your application is approved, you may be able to get funds in as little as 24 hours (but up to 72 hours). This time frame puts Fora Financial on par with other online lenders, such as

Bluevine

and OnDeck.

Prepayment discounts available

Fora does not charge prepayment penalties on its

business term loans

. In fact, the lender offers prepayment discounts to eligible borrowers.

Fora also gives you an opportunity to increase your amount of funding after you’ve repaid at least 60% of the original loan.

Flexible qualification requirements

Compared with traditional lenders, and even some online lenders, Fora Financial offers more flexible qualification requirements.

To qualify for a loan, you’ll need a minimum credit score of 570 and at least 6 months in business — making Fora a good option for startups and

businesses with bad credit

. The lender doesn’t require physical collateral, but may file a

UCC lien

on your business assets.

Plus, Fora does a soft credit pull when you apply (which does not impact your credit). The lender only performs a hard credit pull when you fund.

» MORE:

Best startup business loan options for entrepreneurs

Where Fora Financial falls short

No long-term financing options

Fora Financial only offers repayment terms of up to 18 months. If you need financing for a longer period of time, you might consider other online lenders, like OnDeck, which offers terms up to 24 months, or iBusiness Funding (formerly Funding Circle), which offers terms up to 60 months.

On the other hand, if you’re looking for long-term financing and can qualify, a bank or

SBA loan

will likely offer the most competitive rates and terms.

Charges interest as factor rate

Fora Financial charges interest on its short-term loans as a factor rate. Factor rates are multiplied by your loan amount to calculate the total amount you’ll need to repay.

For example, say you have a 12-month, $10,000 loan with a factor rate of 1.1. To calculate the total cost, you’d multiply $10,000 by 1.1 to get $11,000.

Factor rates can be difficult to understand and make it harder to compare loan costs with other lenders. You should always convert your factor rate into an APR to get a better sense of your borrowing costs.

» MORE:

Learn how to convert a factor rate to APR

Can’t build business credit

Fora Financial does not report payment history to the commercial credit bureaus. To

build business credit

from timely payments, you’ll need to find an alternative product. Building business credit can help you qualify for larger business loans with lower interest rates in the future.

Alternatives to Fora Financial

OnDeck

OnDeck fast facts

Loan type: Term loan.
Max. loan amount: $250000.
Terms: Up to 24 months.
APR: Starting at 31.3%.
Min. credit score: 625.
Min. time in business: 12 months.

Fora Financial vs. OnDeck

OnDeck offers short-term business loans of up to $250,000 with longer repayment terms than Fora Financial — up to 24 months. Similar to Fora, OnDeck offers a streamlined online application and funding as quickly as the same day you’re approved.

To qualify, you’ll need a minimum credit score of 625 and at least 12 months in business. Compared to Fora, however, which requires a minimum annual revenue of $180,000, OnDeck only requires $100,000.

» Read our full

OnDeck review

iBusiness Funding

iBusiness Funding fast facts

Loan type: Term loan.
Max. loan amount: $500000.
Terms: Up to 60 months.
APR: Starting at 15.22%.
Min. credit score: 660
Min. time in business: 24 months.

Fora Financial vs. iBusiness Funding

If you’re an established business with good credit, you might consider iBusiness Funding to access lower interest rates and longer repayment terms. iBusiness Funding offers loans up to $500,000 with repayment terms up to 60 months.

The lender can provide funding in as little as three business days, but requires that you have a credit score of 660 and at least 24 months in business to qualify. Interest rates on iBusiness Funding loans range from 15.22% to 45%.

» Read our full

iBusiness Funding review

Frequently asked questions

Is Fora Financial legitimate?

Fora Financial says it has issued $3 billion in business financing to over 35,000 companies since its founding in 2008. The lender has been accredited by the Better Business Bureau since 2011, where it has an A+ rating.

Is Fora Financial a direct lender?

Yes. Fora Financial is a direct lender of its business term loans and merchant cash advances.

Does Fora Financial report to credit bureaus?

No. Fora Financial does not report to the consumer or commercial credit bureaus. As a result, your payment activity on a loan from Fora will neither hurt nor build your credit scores.