Forward Financing Merchant Cash Advance: A Sound Choice for an MCA
As MCA companies go, Forward Financing ranks among a shortlist of trustworthy ones worth consideration — if you truly can’t get any other type of business financing.
Overview
The bottom line:
Forward Financing’s merchant cash advance may be a good option for bad-credit borrowers in need of fast financing of up to $500,000, but, like all MCAs, the funding cost will be high.
Loan details
Min. Loan Amount
$5,000
Min. Term Length
3 months
Max Loan Amount
$500,000
Max Term Length
18 months
Qualifications
Min. credit score
500
Min. Time in Business
12 months
Min. Annual Revenue
$120,000
Pros & Cons
Pros
Low credit score requirement compared with other MCAs NerdWallet evaluates.
Can be used to build business credit.
Solid user ratings on platforms like Trustpilot and Google.
Cons
High origination fees.
Daily or weekly repayments required.
Need to contact company to request a payment adjustment if your business’s revenue drops.
Forward Financing is a
It’s important to understand, however, that MCAs are not small-business loans
Merchant cash advances are typically one of the most expensive types of business financing. In general, you should consider all other small-business funding options before an MCA.
» Learn more about merchant cash advances
How much do you need?
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.
Consider Forward Financing if you:
- Can’t qualify for traditional business financing. Many traditional business loans have high barriers to entry, especially bank loans. With Forward Financing’s MCA, you may be able to secure funds with bad credit, no collateral and 12 months in business.
- Need fast access to cash. Depending on when you apply, you may be able to receive
funds the same day - Want a short-term solution. MCAs are designed for short-term needs, not long-term financing. With Forward Financing, you’ll pay back the advance over an estimated 3 to 18 months.
- Have strong profit margins. Since MCAs are costly, they’re best suited for businesses with healthy profit margins. This helps ensure you can cover the daily or weekly repayment while still managing day-to-day expenses.
Not a fit? Consider these options instead.
Forward Financing MCA details
| Advance amount | $5,000 to $500,000. |
| Estimated factor rate | Not disclosed. |
| Fees |
|
| Estimated term length | 3 to 18 months. |
| Repayment schedule | Daily or weekly. |
| Funding speed | Approval within hours and funding as soon as the same day. |
Where Forward Financing stands out
Fast and easy access to funds
Forward Financing says its application process takes minutes, with approval decisions typically made within a few hours. If approved before 3:00 p.m. ET, borrowers may receive funding the same day. As part of the application, Forward Financing collects basic personal and business information and asks for only minimal documentation
Borrowers may also tap into additional funds without having to submit a new application if they’ve paid back at least half of their current cash advance.
» MORE: Best fast business loans
Can be used to build business credit
Forward Financing reports borrowers’ payment activity to Experian Business Credit, one of the three major business credit bureaus. Its startup-friendly qualification criteria can help newer business owners with strong cash flow establish a business credit
From Our Nerds: Convenient funding is helpful, but can be a double-edged sword
“Forward Financing’s streamlined application process and easy access to additional funds can be a lifeline for business owners in urgent need of short-term capital. However, that convenience can be a double-edged sword. If you repeatedly tap into more cash advances, you may find yourself unintentionally entering a cycle of debt that’s hard to get out of.”
Ryan Brady, lead writer, Small Business
Where Forward Financing falls short
High origination fees on smaller advances
Forward Financing charges an origination fee, which is an upfront cost borrowers pay. This fee scales with the size of the cash advance, and for smaller funding amounts, it can be relatively steep. For example, the company charges $495 on advances between $5,000 and $10,000. This translates to an origination fee of between 5% and 10%. That’s relatively high compared with other MCA providers NerdWallet evaluates, some of which don’t charge an origination fee at all.
Have to reach out to account executives to adjust payments
Forward Financing withdraws payments from your business bank account based on estimated revenue at the time you applied. While payment amounts may be adjusted if your sales decline, you'll need to contact an account executive to request a change. This extra step may be inconvenient for some business owners.
Alternatives to Forward Financing
Other MCAs
Fundomate
Apply now Fundomate is another NerdWallet-vetted and approved online provider offering MCAs to small-business owners. It also offers funding up to $500,000 and has nearly the same qualification requirements as Forward Financing. Fundomate asks for a slightly higher credit score of at least 600, though. On the upside, Fundomate’s origination fee is only up to 2.5%, and the company doesn’t charge additional fees.
Uplyft Capital
Uplyft Capital
Uplyft Capital- Merchant cash advance
Min Credit
475
with Fundera by NerdWallet
» Interested in more options? Check out our list of best merchant cash advance companies
Other funding options
SBA microloan
U.S. Small Business Administration
SBA microloan
Min Credit
620
with Fundera by NerdWallet
If you only require $50,000 in funding or less, you have a slightly higher credit score and you can wait up to a month to receive the funds, consider an SBA microloan
Fundbox
Fundbox
Fundbox - Line of credit
NerdWallet Rating
4.7
Annual Fee
$0
with Fundera by NerdWallet