Business loan

Financial Review 2021 | Reviews of the best business lending and financing options

Financial Forum

Collateral 2.0
Online application 2.0
Quick financing 1.5
Credit requirements 2.0
Editor’s Note 9.5

Cost

The interest rate on a Fora Financial loan depends on your credit score. The higher your credit score, the lower your interest rate will be.

Once you are approved for a loan, Fora sets up a repayment plan. Payment is automatically deducted from your business checking account on a daily or weekly basis. We like that you have to make frequent payments because you will avoid paying a larger amount at the end of the month. These frequent payments are not common with the lenders we reviewed; Balboa Capital requires monthly payments, for example. With Fora Financial, there are no prepayment penalties, and you can get a discount on the remaining balance if you pay it back sooner.

Fora Financial also stands out because, unlike other lenders like Crest Capital, it doesn’t charge any documentation fees.

Apply for a loan

Fora Financial makes it quick and easy to apply for a short term loan of up to $ 500,000, which is a real plus. The more tedious the process, the longer it will take you to get the money you need. For short-term borrowers, this could mean missing an opportunity or taking on more debt.

Fora’s application process is fast. The lender makes an approval decision within 24 hours, and if you are approved, your loan will be funded within 72 hours. This financing time is longer than that of some other lenders, such as Rapid Finance. However, you don’t need to provide any collateral and the paperwork requirements are limited.

You can either complete an online application or apply by phone. The lender asks for basic information including your business name, email address, phone number, monthly gross sales, and years in business. Additionally, you must show three of your company’s most recent bank statements.

Fora Financial has relaxed loan conditions. To be eligible, you must have been in business for at least six months, generate $ 12,000 or more in gross monthly sales, and have no bankruptcy on file. Fora Financial only requires a decent credit score of around 500. For cash advances to merchants, you also need a minimum of $ 5,000 in monthly credit card sales. [Visit our best picks page for recommendations on the best credit card processing companies.]

Fora Financial has a straightforward application process.

Source: Fora Financial

Loan conditions

We chose Fora Financial as our best choice for short term loans because its terms only last 15 months. This means that you won’t be paying as much compound interest as if you were to take out a longer-term loan.

Loans from Fora Financial are unsecured, which means you don’t have to post any collateral, like real estate or equipment, to secure the loan. A personal guarantee is also not required, which is unusual in the alternative loan market. This means that, if you default on the loan, this lender will not come after your personal assets.

The lack of warranty requirement and limited paperwork appealed to us. Sure, loans take up to 72 hours after funding approval, but you won’t have to do a lot of upstream work to get approved.

Did you know?Did you know? Short-term loans are a popular financing option among small business owners, and there’s a good reason for that – you don’t have to pay compound interest for a long time.

Helpful Tips

We like that Fora Financial doesn’t require tons of documents. You need three months of bank statements, which the lender will use to verify your gross monthly income. If you have disputed the credit, Fora may request more documents, such as monthly bank statements, income tax returns, and profit and loss statements. Make sure you have the documents ready before you start the loan process, which will speed up the approval.

Financial characteristics of forums

Short term The term of the loan does not exceed 15 months.
Easy approval Fora Financial has relaxed the qualification requirements.
No restrictions The product can be used for any business expense.

Short term

One of the reasons we selected Fora Financial as the best one for short term loans is that the terms are capped at 15 months. This means that you won’t be paying interest for a long period of time, or worse, you won’t owe money long after the reason you borrowed has lost its value.

Easy approval

Fora Financial requires business borrowers to have a decent credit score (at least 500) and at least six months of business history. This lender is prepared to work with borrowers who may have credit problems. Other lenders, like Fundbox, require credit scores of at least 680, which significantly limits who is eligible for a loan.

No restrictions

You can use the proceeds of Fora Financial loans for any business purpose. So if you need it to cover the payroll, no problem. On the other hand, the banks restrict the use which you can make of the product. This flexibility means you can rest assured that whatever your capital needs, Fora will work for you.

Customer service

Fora Financial provides customer service by phone and email during regular business hours. The lender also has several valuable resources on their website, including a blog and case studies.

Fora Financial has been accredited with the Better Business Bureau since 2011 and has an A + rating.

Fora Financial has relaxed the minimum qualifications.

Source: Fora Financial

adviceAdvice: The more prepared you are before you apply, the faster the process will be. A lender can promise same-day financing, but if you need to spend more time finding your documentation and downloading it to your computer, it will slow down the whole process.

Disadvantages

The only limitation of Fora Financial is that it requires $ 12,000 in monthly sales, but that can be a big hurdle for startups and some very small businesses. Some of the other lenders we looked at, such as SBG Funding, only charge $ 10,000 in monthly sales.

You need $ 5,000 in monthly credit card sales to qualify for the Fora Financial Merchant Cash Advance, which will also exclude some business owners.

Summary

We chose Fora Financial as our pick for the best alternative lender for short term loans because it offers easy online application, relaxed qualifications, and terms up to 15 months.

We recommend Financial forums for:

  • Borrowers who want a loan they can repay quickly
  • Business owners who process a large number of monthly credit card sales and require a cash advance from the merchant
  • Borrowers who don’t want to provide a ton of paperwork during the application process

We do not recommend Financial forums for:

  • Borrowers with low credit scores who are concerned about high interest rates
  • Businesses that generate less than $ 12,000 in sales per month
  • Business owners who don’t process a lot of credit card payments each month because they won’t be eligible for the Fora Financial merchant cash advance


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