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Up to $300,000
Up to 12 months
Min. credit score
Time to funding
As soon as the same day
Forward Financing has a solid reputation for providing small business owners with fast access to capital, even if they don’t have an amazing credit history—a challenge that can keep many successful entrepreneurs from scaling their companies. Instead, Forward Financing looks at how much money your business actually brings in each month and then offers revenue-based financing. Payments are automatically deducted from your business bank account as a portion of your sales. While the amount isn’t predictable, you can predict your profit margins with revenue-based financing, since payments are based on a percentage of sales.
Forward Financing offers borrowers revenue-based financing rather than traditional small business loans. Instead of making fixed monthly payments over a set period of time, you’ll repay your loan as a fixed percentage of your sales or revenue on an either daily or weekly basis.
With fast funding and excellent third party reviews, Forward Financing is definitely worth considering for your business needs. However, there are a few things to watch out for, including origination fees and potentially costly factor rates. It’s the price you’ll pay for relatively lax eligibility requirements. Plus, current borrowers have the option of renewing their financing once they repay half their balance, giving you an ongoing partner to help fund your business. All of these factors demonstrate how important it is to seriously weigh the pros and cons of your financing decision.
One of the most attractive features of Forward Financing is the incredible funding time. Once you’ve submitted your application, you can expect approval within hours. Then you’ll participate in a funding call to make sure you understand the terms of your financing. If the terms sound good and you sign the contract, you could have funds in your account the same day, as long as everything is wrapped up by 3:00 p.m. Eastern time.
Businesses can borrow anywhere between $5,000 and $300,000 through Forward Financing. This is a moderate amount compared to some lenders who lend out up to $2 million. But if you’re not planning to purchase a property or buy a highly valued company to expand, then you may qualify for enough to meet your specific financing needs. After all, no matter what loan amount you’re approved for from any lender, it’s smart to have a strategy for how much you need and how you plan to use the funds.
There are two layers of fees included with your financing. The first is a factor rate, which ranges between a multiple of 1.3 to 1.5 your borrowed amount.
So, if you finance $50,000 with a 1.3 factor rate, your owed balance would be $65,000. Additionally, Forward Financing charges a service/origination fee that is deducted from your upfront sum. In the example above, you would owe $65,000 and receive less than $50,000 to actually use for your business.
In good news, there are never any prepayment penalties; in fact, you may even receive a discount if you pay off your balance early. Check your loan agreement before signing to see if you qualify for a discount.
Getting revenue-based financing with Forward Financing may seem like a potentially costly option. But one of the reasons is that the company has fairly relaxed approval guidelines. Instead of doing a deep dive into your personal and professional credit and financials, your application focuses more on your current revenue and only takes 10 minutes to fill out.
The minimum personal credit score is just a 500, one of the lowest minimums out there among lenders. Your business does need to be at least one year old, and your revenue needs to be solid—at least $10,000 per month. Since the company provides revenue-based financing rather than an unsecured loan, there is no personal guarantee required.
There are two ways to pay your balance: either daily or weekly. Forward Financing automatically debits your bank account based on your loan terms. The term length lasts between three and 12 months.
Keep in mind that this is a very frequent payment schedule and you need to make sure your business revenue can support the costs involved. Once you’ve paid down at least half of your balance, you may be eligible to renew your financing.
Forward Financing reviews on TrustPilot average 4.9 out of 5 stars, which is very high compared to many other business lenders. Almost every Forward Financing review mentions incredible customer service and the speed of funding. If those are features you value in your business financing, then it’s definitely worth considering this option.
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*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (October 25, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.
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California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through Lendio Partners, LLC, a wholly-owned subsidiary of Lendio, Inc. and a licensed finance lender/broker, California Financing Law License No. 60DBO-44694.