Pros & Cons
Cash can be available quickly.
Get a discount for prepaying.
No collateral required.
Charges a factor rate which makes it more difficult to compare costs to other lenders.
Minimum business age and revenue requirements apply.
Longest loan term is 15 months.
How Much Do You Need?
Fora Financial term loan
Fora Financial, a New York-based online loan provider, offers access to term loans.
Fora Financial may be a good fit for borrowers who may fall short of qualifying for traditional bank financing, or young but established small businesses looking for speedy financing.
Loan amount: Up to $750,000.
Interest rate: 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).
How to qualify:
In business for at least six months.
Have at least $12,000 in gross sales per month.
No open bankruptcies or dismissed bankruptcies within the past year.
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.
How to get approved:
Provide 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.
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.
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 $750,000. 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.
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.
Frequently asked questions
Fora Financial says it has issued $2 billion in business financing since its founding in 2008. The lender has been accredited by the Better Business Bureau since 2011, where it has an A+ rating.
Fora Financial’s other loan options include 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.