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Fora Financial Business Loans: 2024 Review

Fora Financial business loans have flexible qualifications and are quick to fund — but interest rates may be higher than other lenders.
By Tina Orem, Randa Kriss
Last updated on January 2, 2024
Edited bySally Lauckner
Fact checked and reviewed

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Fora Financial - Online term loan

Max Loan Amount
$1,500,000
Min. credit score
500
Apply now

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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 15 months.

Compare to Other Lenders

at Fora Financial

at Bluevine

at OnDeck

Max loan amount

$1,500,000

Max loan amount

$250,000

Max loan amount

$250,000

Min. credit score

500

Min. credit score

625

Min. credit score

625

Full Review

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.

How much do you need?

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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:

  • Need fast cash. You can complete Fora Financial’s online application in just minutes and receive a decision within 24 hours. Once you’ve signed your loan agreement, you’ll have access to funds within 24 to 72 hours.
  • Don’t meet eligibility requirements of other lenders. Fora Financial has flexible business loan requirements compared to both traditional and other online lenders. To qualify, you only need a minimum of
    6
    months in business and a credit score of
    500
    or higher.
  • Want short-term financing for working capital. Loans from Fora Financial can be used for a variety of working capital needs, including managing expenses, buying equipment or inventory, managing cash flow and more. Repayment terms are available up to
    15
    months, which makes these loans  a good choice for short-term needs.

Fora Financial term loan features

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
15
months.
Repayment schedule
Daily or weekly.
Funding speed
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
84
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.

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:
  • Minimum credit score:
    500
    .
  • Minimum time in business:
    6
    months.
  • Minimum annual revenue: $180,000 (at least $15,000 per month in revenue).
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

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.

Funding Circle

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
84
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 Funding Circle loans range from
15.22
% to
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.

Apply now

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Methodology

NerdWallet’s review process evaluates and rates small-business loan products from both traditional and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings formula takes into account features we consider to be small-business friendly, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

Frequently Asked Questions

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