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.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Fora Financial is best for borrowers who:
Fora Financial term loan features
$5,000 to $1.5 million.
Estimated APR range
Fora quotes interest as factor rates — which range from 1.1 to 1.9.
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.
Daily or weekly.
Application approval within 24 hours. May take up to 72 hours to receive funds.
Where Fora Financial stands out
Quick access to funds
Fora Financial can be a good option if you need access to fast cash. 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 to 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
500 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.
Where Fora Financial falls short
No long-term financing options
Fora Financial only offers repayment terms of up to
15 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 Funding Circle, which offers terms up to
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.
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.
Fora Financial term loan requirements
Fora Financial’s minimum borrower eligibility requirements include:
Fora also requires that you don’t have any open or dismissed bankruptcies within the last year. You must be in an eligible industry to qualify.
Alternatives to Fora Financial
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.
If you’re an established business with good credit, you might consider Funding Circle to access lower interest rates and longer repayment terms. Funding Circle offers loans up to $500,000 with repayment terms up to
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 Funding Circle loans range from
45%. Read our full Funding Circle review.
Compare your business loan options
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.