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Fora Financial Review 2022: Is This Business Lender Legit?

Fora Financial has small business loans designed for quick cash flow with limited restrictions. It’s possible to qualify for a loan even with fair to poor credit.

8.0 / 10
Editorial Score
Andrea Miller
Senior finance writer and editor
June 21, 2022

Overview

Fora Financial advertises fast, flexible small business loans from $5,000 to $500,000. The funding preapproval process takes just a few minutes without impacting your credit score. Upon approval, you could receive an infusion of working capital within 72 hours.

If you’ve had limited success with business loan approval, Fora Financial may provide a solution. You need a minimum credit score of 500 and on sales and strong sales for at least six months in business. The company uses a holistic approach that considers alternative data such as a strong business plan that supports healthy growth.

Before committing to a loan through Fora Financial, you may want to shop around to compare rates. Businesses with strong credit and income can possibly obtain more affordable financing from another lender, without this company’s costly origination fees.

GREAT CHOICE 2022
8.0 / 10
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Fora Financial
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Products & Services

Fora Financial offers two main financial products for business clients.

Small Business Loans

You can use small business loans from Fora Financial to provide cash flow for your operational needs without restrictions. The company also has industry-specific loans such as funding for construction, restaurant, and service businesses.

Unlike most competitors, Fora Financial does not require a personal guarantee for your loan. You do not need to provide collateral such as a vehicle or equipment for these unsecured loans. In other words, the company will not go after your personal assets if you cannot repay according to the agreed terms.

You will repay your loan with automatic deductions from your business checking account at the end of each week. Once you have an existing loan with Fora Financial, you can easily renew your funding with a simple approval process. The company’s relationship management department handles renewal requests and other questions for customers.

Merchant Cash Advances

In addition to small business loans, Fora Financial also offers merchant cash advances. With this arrangement, you sell a percentage of daily credit card sales for a set time period in exchange for a lump sum. The lender retains this percentage until the advance is repaid with interest.

Rates and Terms

Fora Financial expresses its loan terms as factor rates rather than standard percentages. You can access loans with factor rates of 1.10 to 1.35. Multiply this decimal by your loan balance to calculate the total interest.

If you borrow $100,000 and qualify for a factor rate of 1.10, for example, you would pay back $110,000 (the original balance plus $10,000 in interest). Because the lender charges a one-time interest fee rather than accrued interest, you do not save money on interest by paying your loan back early.

These loans have repayment terms of up to 15 months and require either daily or weekly payments through automatic withdrawals from your business checking account. You can access a discount incentive if you repay your loan before the term ends. Shorter loans typically have higher interest rates than long-term business funding.

Unlike some small business lenders, Fora Financial does not restrict your funds. In other words, you can use the cash you receive for payroll, inventory, marketing, operations, or any other business purpose.

Loans with Fora Financial have an origination fee of 2.5%. If you borrow $100,000 like in the example above, the lender will subtract $2,500 from the amount you receive to cover this fee.

Application Process and Qualifications

According to Fora Financial, its approval process goes beyond your credit score. In fact, you may be eligible for financing with a FICO score as low as 500.

Before you start the application process, you can estimate your available funding by entering your average ledger, years in business, and monthly revenue.

You can qualify for a loan as long as you have been in business for at least six months and processed at least $12,000 in gross sales or $5,000 in credit card sales over that period.

In lieu of a credit check, you must demonstrate a strong business model with a solid plan to meet future financial obligations. You cannot qualify with an open bankruptcy in your personal or business history.

To apply, you must fill out the company’s one-page application and provide three months of business banking statements. You must provide a driver’s license, voided check, and proof of business ownership. Fora Financial may also request your business tax return, balance sheet, and profit and loss statement to provide approval.

You cannot access funding from Fora Financial for a business in the real estate, nonprofit, law, gambling, financial, auto sales, adult entertainment, or accounting industry.

Approval Time

You can receive preapproval from Fora Financial in just a few minutes and funds within 72 hours of final approval. Preapproval does not carry the obligation to move forward with funding if you decide to go with a different lender.

Customer Service

When you have a loan with Fora Financial, you can call the relationship management department with questions and concerns. The line is open Monday through Friday from 9 a.m. to 6 p.m. EST. Fora Financial also offers clients a resource library of videos that explains how the different types of available loans work.

If you do not yet have funding through Fora Financial, you can reach customer service through a dedicated number. The first time I dialed, I heard a welcome message, then remained on hold for less than a minute before I was abruptly disconnected. My second call was more successful with a hold time of 3 minutes and 13 seconds before connecting with a helpful representative.

You can also email support. I sent a message but have not received a response as of the publication deadline.

You may want to avoid the comment box on the Fora Financial contact page. When you submit questions through this form, you agree to receive offers from lenders through text messages and phone calls.

Summary

If you need fast cash to take advantage of a business opportunity, Fora Financial could provide the necessary financing even if you don’t have the greatest credit. Repaying this type of loan as agreed can help your business qualify for more affordable funding in the future.

However, you’ll have to go elsewhere for funding in certain industries or if you need more than $500,000. You might also want to consult with other lenders if you want a loan term of longer than 16 months. In addition, be sure to account for the origination fee when deciding on a small business loan.

Fora Financial does not disclose its interest rates outside of a general range, so you will need to submit your information to receive loan offers. Doing so will result in possibly unwanted contact from lenders who are attempting to earn your business.

Despite these cautions, Fora Financial provides flexibility and speed, as well as the ability to compare offers from different lenders right from their platform.

Frequently Asked Questions

Is Fora Financial legit?

Fora Financial is a legitimate small business lender. The company has a 5-star overall customer rating from Trustpilot as well as accreditation and an A+ rating from the Better Business Bureau. Fora Financial was previously known as Paramount Merchant Funding.

Is Fora Financial a direct lender?

Fora Financial does offer direct loans, but they also connect you with a network of other providers when you apply.

How do you get approved for Fora Financial?

You can receive approval for a loan from Fora Financial if you submit proof of at least six months in business, a credit score of at least 500, and at least $5,000 in credit card sales or $12,000 in gross sales over the past six months.

Andrea Miller
Written by

Andrea Miller has been a writer and editor for more than two decades. She has previously covered financial topics for Solvable, Kabbage, and Credit.com. Outside of work, she spends most of her time with her husband, daughter, and son and enjoys hiking, yoga, and reading.

Pros:
  • Approval with a one-page application and several bank statements
  • Discounts available for early loan repayment
  • Safe, secure process with transparent approval information
Cons:
  • Application requires acceptance of text and phone funding offers
  • Limited loan types available
  • Origination fee of 2.5% of the total loan balance
Bottom Line

Fora Financial specializes in short-term business loans with repayment in 15 months or less. You may want to consider this lender for fast cash flow, since you can access funds within 72 hours if you qualify. Fora Financial is also a good option if you don’t have the business credit to qualify for traditional forms of working capital.

You may want to avoid Fora Financial if you have concerns about unwanted phone calls and texts from lenders attempting to secure your business. You will also need to go with a different lender for a Small Business Administration (SBA) loan.