Fora Financial Small Business Loan Review

FORA Financial

Fora Financial is an alternative lender that offers small business loans and merchant cash advances. Compared to other lenders, it provides a wide range of funding amounts and has some nice perks like early payoff discounts and affordable rates. Learn more about whether it’s right for you in this Fora Financial review.


What is Fora Financial?

Fora Financial is a direct lender of merchant cash advances and small business loans. That means that they’re the ones who actually give you the money, as opposed to matching you up with a partner lender. Since Fora Financial only offers two types of loans, your options are limited. Still, you can use these loans for a wide range of purposes.

Fora Financial: At a Glance
Amount Terms Rate* Repayment Minimum Credit Score
Small Business Loan $5,000–
4–15 months Factor rates from 1.10- 1.35 Daily or weekly payments 500
Merchant Cash Advance $5,000– $750,000 No set terms Factor rates from 1.10- 1.35 Daily or weekly payments 500

Small business loan

Truthfully, there’s not much difference between Fora Financial’s short-term loan and its merchant cash advance. The only thing that differentiates Fora Financial business loans is that your payments aren’t tied to your credit card receipts. Fora auto-drafts your payments from your bank account on either a daily or weekly basis, depending on your agreement with the company.

One thing to keep in mind, too, is that Fora Financial charges a 2.50% origination fee for this small business loan. Also, it’s difficult to compare Fora’s small business loan with other similar options since these loans use factor rates, which are hard to convert to traditional APRs.

Merchant cash advance

Fora Financial’s merchant cash advances pull payments from your account depending on how much you bring in with your credit card receipts. Merchant cash advances also come with a 2.50% origination fee.

Fora drafts payments from your account on a daily or weekly basis, but they’ll appear as a percentage of your sales rather than a set payment. Because your payment amount changes, there are no set term lengths — you pay it off once you’ve reached the payback amount.

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Fora Financial review: should you apply?

Fora Financial is one of the better alternative small business lenders because it offers transparent rates and funding amounts that might suit businesses looking to finance short-term needs, small or large, up to $750,000. It even offers prepayment discounts if you pay off your small business loan within the first few months of your term. In addition, you don’t need a good credit score to qualify, as long as you can meet Fora’s other requirements.

Downsides of Fora Financial

It doesn’t offer same-day funding like other online lenders, but it is still a lot faster than a traditional small business loan. However, you might find Fora’s payment structure more pressing than you’re used to. Both loan types require daily or weekly payments. Fora Financial’s repayment periods (4–15 months) might be too short, especially if you need to borrow a large amount. But with its merchant cash advances, there is no set term length so it’s hard to say when exactly you’ll be out of debt.

Ultimately, only you can judge whether Fora Financial is right for you. It’s worth checking your rate, but we suggest shopping around with other small business lenders, too.

Fora Financial requirements

  • Minimum credit score required: 500
  • Time in business required: 6 months
  • Monthly/annual revenue required: $5,000 minimum in monthly credit card sales for merchant cash advances. $12,000 minimum in monthly sales for small business loans.

Fora Financial has lenient credit requirements but you’ll need to meet its time-in-business and monthly sales requirements. For merchant cash advances, you’ll need to make at least $5,000 in credit card sales each month. The reason this is so specific is that your payment amounts are tied to your credit card sales, so Fora Financial wants to ensure they’ll be getting some sort of payment each month.

Small business loans aren’t tied to your credit card receipts, so you can earn any combination of payment types as long as you’re pulling in at least $12,000 per month in some way or another.

Because Fora Financial requires that your business be in operation for at least six months, it might not be right for your company if you’re a startup or not yet generating sufficient income. Finally, you’re ineligible if your company has any open bankruptcies.

How to apply for Fora Financial

The first step in applying for a loan through Fora Financial is either calling up the company at 877-514-8062 or filling out a contact form on the company’s website. The form asks for your business name, annual revenue amount and other basic contact details. From there, a representative will get back to you to complete the application process.

Since Fora Financial requires at least six months in business and a certain revenue amount to qualify, you’ll need some way to prove these things. Fora Financial may ask for copies of your:

  • Three most recent bank and/or credit card statements
  • Driver’s license
  • Past tax returns
  • Profit-and-loss statement
  • Balance sheet

If Fora Financial approves you, you’ll receive your funding within a minimum of 72 hours. You’ll also get a Fora Financial login to manage your account online. You can apply for more funding if you need to, although like your first application, Fora grants funding on a case-by-case basis after reviewing your business’s financial strength.

*Rates current as of Nov. 23, 2020