Fora Financial Small-Business Loans: 2021 Review

Fora Financial, a New York-based online loan provider, offers access to term loans up to $500,000. You need to have been in business for at least six months, have at least $12,000 in gross sales per month and have no open bankruptcies or dismissed bankruptcies within the past year to qualify.

The factor rate on these loans ranges from 1.1 to 1.9. This loan isn’t priced using an annual percentage rate. APR is for financing where interest accrues on the principal as it gets smaller and smaller as payments are made. To calculate the full cost of a Fora Financial term loan, multiply the factor rate by the amount borrowed. For example, the total to repay on a $10,000 loan at a factor rate of 1.1 for a 12-month term is $11,000 ($10,000 x 1.1 = $11,000).

To apply and get funded, you’ll need your business’s three most recent bank statements, Fora Financial’s one-page application, a driver’s license, voided check, credit score and proof of ownership of the business. You may also need to supply tax returns and financial statements. There's a 2.5% origination fee.

The company also offers merchant cash advances, which are one of the most expensive forms of financing. As a result, we recommend exhausting all other financing alternatives before turning to a merchant cash advance.

Fora Financial doesn't lend to companies in these industries: accounting, adult entertainment, auto sales, financial institutions, gambling/casinos, lawyers, nonprofits and real estate sales.

Fora Financial is a good fit for:

• Borrowers who may fall short of qualifying for traditional bank financing.

• Young but established small businesses looking for speedy financing.

Reasons to use Fora Financial

You need fast cash

Once your application is approved, you can get funded within 72 hours, which is a time frame on par with some of the company’s competitors, such as Funding Circle and BlueVine.

Collateral isn't required

You won’t need to pledge your personal or business assets in order to receive funding. That can make those assets available as collateral for other financing if needed. Although it's nice to not need collateral, note that unsecured loans may carry higher rates than secured loans.

» MORE: Compare low-interest business loans

Flexible approval evaluation

Fora Financial considers more than credit score as a factor in approving your loan application; it also looks at business revenue and future plans when making a decision.

Where Fora Financial falls short

Not for big borrowers

The most you can borrow is $500,000. That amount can get many new businesses going and supply some short-term working capital, but businesses with heavy real estate or capital expenditure needs may find the limit too low.

Not for long-term financing

Term loans max out at 15 months. If you need financing for a longer period of time, you may be better off looking into long-term financing from a lender that provides Small Business Administration loans.

» MORE: Find options for short-term business loans

Not for brand-new ventures

You’ll need to prove that you’ve been in business for at least six months and have at least $12,000 in gross sales per month to qualify. Also, an open bankruptcy means an instant no.

Compare business loans

If you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.