Fora Financial offers short-term business loans to high-risk industries up to $500,000 with terms up to 18 months. Factor rates start at 1.1 times the loan or an APR of 14%, and Fora Financial business loans require at least $145,000 in annual revenue and a 500 or higher credit score to qualify.
Fora Financial Business Loans vs Top Alternatives
Next-day, short-term business loans for high-risk industries
Same day business loans with no origination fees
Repayment term flexibility from an online lender
Low interest rates and monthly payments from a trusted source
Monthly payments on a line of credit with quick funding
Easy-to-meet qualifications on next-day lines of credit
Last-resort financing with high interest rates and low minimum qualifications
What Fora Financial Offers
Fora Financial offers short-term business loans based on a company’s cash flows. The rates are relatively high and also include an origination fee of 2.5%. However, using Fora Financing, business owners can borrow up to $500,000 that’s available as soon as the next day, and borrowers with low personal credit scores can qualify.
Who Fora Financial Business Loans Are Right For
Fora Financial business loans are a good financing option for business owners with low personal credit scores, high returns on investment, and operations in high-risk industries. Business owners also can receive quick funding but should know the overall cost of financing can be steep.
Borrowers who can benefit from Fora Financial business loans include:
- Business owners with low personal credit scores: The minimum personal credit score requirement for a Fora Financial business loan is only 500. Fora Financial reviews often cite this low requirement as a major reason for applying with the lender.
- Businesses with a high return on investment: Business owners who can earn a return higher than the rates charged for a Fora Financial business loan can set themselves up to finance profitable growth.
- Business owners needing quick funding: Fora Financial offers funding as soon as the next day, like many other alternative lenders. The drawback to quick funding, however, is often more frequent payments and higher overall costs.
- Applicants with a short time in business and substantial revenue: Business owners who appreciated the six-month time in business requirement left positive Fora Financial business loan reviews.
- Businesses in high-risk industries: Construction, retail, distribution, and restaurant businesses are considered riskier than other sectors by traditional lenders. Fora Financial business loans have separate underwriting criteria for these sectors.
The overall benefits of working with Fora Financial to receive a business loan should be assessed by individual business owners. When business owners can receive funding from traditional sources like banks or credit unions, those are the preferred options. However, when in need of quick funding with minimal requirements, Fora Financial is a great lender to work with.
Fora Financial Rates & Fees
Fora Financial business loan rates and fees include:
- Factor rate: 1.1x to 1.5x
- Estimated APR: 14% to 175%
- Origination fee: 2.5%
Fora Financial business loans are a great solution for construction, manufacturing, and other industries needing a term loan for a major investment. Fora Financial calculates repayment by multiplying the loan amount by the factor rate. There is an early repayment policy, with interest discounts up to half the loan term. It presents this discount in the financing offer with corresponding repayment amounts.
Fora Financial Terms
Fora Financial business loan terms include:
- Loan amount: $5,000 to $500,000
- Repayment term: Six to 18 months
- Repayment schedule: Daily or weekly
- Collateral: May require a blanket UCC filing
- Personal guarantee: Required
- Funding speed: 10-minute application with approval and funding the next day
A standout feature of a Fora Financial business loan is its large loan amounts and its long repayment terms that can last up to 18 months. Business owners will, however, make daily or weekly payments, which can put a strain on cash flow. Unlike many other alternative lenders, it may not require a blanket UCC filing for smaller loan amounts, but business owners must still provide a personal guarantee for the loan.
Fora Financial Requirements
Fora Financial business loan qualifications include:
- Personal credit score: At least 500 (check your score for free)
- Time in business: At least six months
- Annual revenue: At least $145,000
Fora Financial has a low time-in-business requirement of six months and only requires a personal credit score of 500 or higher. It bases its funding decision primarily on the annual revenue and free cash flow of the business. To qualify for a loan over $150,000, business owners must submit the previous year’s tax return, profit and loss statement, and balance sheet.
What Fora Financial Is Missing
Fora Financial offers borrowers with low personal credit scores and a short time in business funding for major investments like inventory and renovations. However, its business loan has a high minimum annual revenue requirement and a large APR range that borrowers should evaluate closely before accepting a funding offer.
Fora Financial Business Loan Reviews
Business owners who work with Fora Financial leave positive reviews about its service and helpful staff. In evaluating Fora Financial reviews, we found some negative feedback from customers that it denied funding to or offered rates that their business cash flow could not sustain.
How to Apply With Fora Financial
Fora Financial business loans offer small business owners funding up to $500,000 with a starting APR of 14% and repayment terms up to 18 months. Business owners can complete an online application in minutes and receive funding as soon as the next day. We recommend that business owners review their funding offer and determine if the rates charged for the loan are sustainable for their business.
The best small business funding alternatives to Fora Financial include:
BlueVine: Best Same-day Business Loans Without Origination Fees
BlueVine offers borrowers small business loans with higher starting rates than Fora Financial, but it also has no origination fee and can provide funding as soon as the same day. Business owners needing immediate funding who can qualify for the loan can receive up to $250,000 with repayment terms up to 12 months at starting rates of 18.2%.
BlueVine Rates & Fees
BlueVine business loans compared favorably to Fora Financial because it doesn’t charge an origination fee and the top range of interest charges is lower. It’s great for financing specific projects with high returns, but business owners should closely assess the costs for overall sustainability. It also doesn’t offer a prepayment discount, but business owners can receive offers for a BlueVine line of credit for more flexible financing.
BlueVine offers business owners a smaller amount of funding than Fora Financial does. However, based on some BlueVine and Fora Financial reviews, business owners have received sufficient capital for projects. BlueVine also offers a five-minute application process with an approval decision in as quickly as 10 minutes, making it a good option for emergency small business funding.
Business owners with a better personal credit score will have an easier time qualifying for BlueVine business loans as it’s an important step in the underwriting process. BlueVine also evaluates a business’ profit margins to ensure that it does not overburden business owners with debt payments. Some business owners with stellar credit and time to wait for funding should work with traditional lenders instead of the best short-term business loan providers.
What BlueVine Is Missing
BlueVine is a great option for financing a large investment project at relatively low rates with short repayment terms and easy-to-meet qualifications. However, it offers a smaller loan amount than Fora Financial and only 12 months for total repayment. Business owners needing quick funding with more flexible repayment terms may consider working with LoanBuilder instead.
Borrowers appreciate the high quality of service and attention to questions and concerns that BlueVine offers, as noted in BlueVine reviews. Some negative reviews of BlueVine came from borrowers who did not get approved for funding. BlueVine is careful to only approve businesses it believes can afford the loan payments.
How to Apply With BlueVine
BlueVine has one of the quickest online business loan applications available on the web. Business owners can complete the application and receive an approval decision in minutes. Funding is available up to $250,000, but business owners should evaluate their terms to determine that the cost and schedule of the loan are sustainable.
LoanBuilder: Best Online Business Loan With Flexible Repayment Terms
LoanBuilder offers borrowers the option to select repayment terms from 13 to 52 weeks, enabling businesses to plan their cash flows. LoanBuilder has a starting APR of 12%, but it may require business owners to pay an APR as high as 136% if approved. Funding is available the next day up to $500,000, and LoanBuilder doesn’t offer a prepayment discount.
LoanBuilder Rates & Fees
LoanBuilder charges a fixed interest rate based on the loan amount over the course of the entire loan, resulting in an estimated APR between 12% and 136%. It doesn’t charge an origination fee, giving borrowers the full amount. Business owners should evaluate their costs and payments to ensure that they can repay funding without jeopardizing their cash flow position.
LoanBuilder is a great alternative to Fora Financial business loans because it offers the same amount of funding and more flexibility regarding repayment terms. Borrowers can select between 13 and 52 weeks for repayment, allowing them to align their costs and planned earnings to the loan. Business owners should leave themselves extra time when selecting repayment terms.
Business owners with at least nine months in business, $42,000 in annual revenue, and a personal credit score of 550 can qualify for funding with LoanBuilder. The lower annual revenue requirement is appealing to lower-revenue businesses that may not get funding from traditional lenders.
What LoanBuilder Is Missing
LoanBuilder offers a substantial funding amount with flexible repayment terms but lacks a prepayment discount, which can be a major drawback. Business owners also have to make weekly payments and APRs can potentially exceed 100%, leaving business owners with limited free cash flow in case another emergency occurs.
Borrowers who left LoanBuilder reviews on the web were pleased with its repayment options and the quick funding speeds. Some borrowers left negative reviews because they were denied funding or received rates that they believed to be far higher than the overall risk their business represents.
How to Apply With LoanBuilder
To apply with LoanBuilder, borrowers must prepare some basic business information and recent bank statements. The approval process typically takes three to four hours and borrowers can qualify to borrow up to $500,000 with repayment terms up to 52 weeks.
QuickBooks Capital: Best Low-interest, Short-term Business Loan
QuickBooks Capital offers a short-term business loan with APRs ranging from 12% to 32% and weekly or monthly payments up to one year. This makes it a great business loan for borrowers across the board, but it comes with higher minimum qualifications. Borrowers who can meet the 620 minimum credit score and one year in business requirement can receive next day funding up to $100,000.
QuickBooks Capital Rates & Fees
QuickBooks Capital business loans are a great solution for business owners looking to get the lowest rates on short-term funding. With a starting APR of 12% and a maximum APR of 32%, any business that qualifies for funding will likely get a better deal from QuickBooks Capital than other alternative lenders. QuickBooks Capital also doesn’t have origination fees, so borrowers can receive the entire funding amount upfront.
QuickBooks Capital Terms
A major drawback of QuickBooks Capital is that it only offers up to $100,000 in funding. Business owners needing funding for a major project will need to evaluate another option. However, QuickBooks Capital offers monthly repayment terms for larger loan amounts, doesn’t require a blanket UCC filing, and business owners can still get approved and funded the next day.
QuickBooks Capital Qualifications
The minimum time in business and annual revenue requirements from QuickBooks Capital makes it an accessible funding option. Although its minimum credit score requirement is higher than some other alternative lenders, business owners who can’t qualify for traditional financing may still get fair rates and terms by working with QuickBooks Capital.
What QuickBooks Capital Is Missing
QuickBooks Capital is the most affordable business loan for small business owners, who can apply to borrow up to $100,000. However, that low funding amount may be insufficient for some projects, and the minimum personal credit score requirement may pose a barrier to funding.
QuickBooks Capital Reviews
QuickBooks Capital reviews are limited as it only recently started offering its short-term business loans. However, QuickBooks receives stellar feedback from its customers and has been operating for a long time. We expect its business loan division will likely work to live up to the expectations that the organization has with small business owners.
How to Apply With QuickBooks Capital
Applying with QuickBooks Capital is as simple as connecting a business’ QuickBooks online accounting software to an application. Businesses can receive approval to borrow up to $100,000 with repayment terms up to a year, at a starting rate of 12%. The higher minimum credit score makes this short-term online business loan more difficult to qualify for, but it’s well worth the effort for borrowers wanting an affordable and easy-to-manage financing option.
Kabbage: Best Business Line of Credit With Monthly Payments
Kabbage offers a business line of credit with monthly payments for business owners looking for increased flexibility on their financing. It’s best for financing repeat purchases or expenses like inventory or payroll, and offers a full prepayment discount on interest. Funding amounts are available up to $250,000 with starting APRs of 24% and repayment terms up to 18 months.
Kabbage Rates & Fees
Business owners who plan on repaying a draw early can benefit from getting a Kabbage business line of credit. The overall APR of the loan is high, especially compared to traditional financing options, but business owners can potentially reduce their costs by borrowing funds on demand and repaying any draws they make early.
Business owners can qualify to borrow up to $250,000 with monthly payments and repayment terms up to 18 months. The flexibility to plan cash flow can be a major benefit, but we don’t recommend that business owners leave draws outstanding for the entire term. This is because even the best business lines of credit can be expensive if borrowers choose to carry a significant balance.
The minimum qualifications for a Kabbage business line of credit are similar to the ones that LoanBuilder sets. Both have the same minimum credit score requirement, but Kabbage requires slightly higher annual revenue and an extra three months in business to qualify. The low minimum qualifications are likely the leading cause of high overall rates, so business owners should review their loan offer closely before accepting.
What Kabbage Is Missing
Kabbage business lines of credit are a fantastic financing alternative for repeated expenses and a monthly repayment schedule. Although borrowers can save money by repaying a draw on the credit line early, the overall cost of financing is still high compared to other alternatives. Business owners should ensure that their cash flows can sustain the high costs of borrowing.
Customers report positive experiences in their reviews of Kabbage and many remained loyal customers over the years. Some standout features include the quick application time and responsive customer service team. Kabbage also received complaints from customers who mentioned the difficulty of getting approved and the high overall costs for financing over an entire term of a draw.
How to Apply With Kabbage
Kabbage’s online application takes minutes to complete and can provide business owners with funding the next day. Business owners can qualify up to $250,000 with a starting APR of 24% and monthly payments for terms up to 18 months. It only does a soft credit check when businesses apply and can provide a financing offer the same day.
Fundbox: Best Line of Credit With Low Requirements
Fundbox offers a business line of credit with low minimum qualifications that business owners with low personal credit scores or low annual revenue can qualify for. Funding is available as a credit line up to $100,000 based on outstanding invoices with short repayment terms of 24 weeks. Borrowers can get funding the next day and receive a prepayment discount on any outstanding interest after repayment.
Fundbox Rates & Fees
Borrowers make payments on a weekly basis at a 10% starting APR. Although business owners can reduce their interest costs by borrowing less on the credit line and repaying it early, this financing option can still be expensive. Unlike invoice factoring, which has lower overall costs, Fundbox’s invoice financing can have costs up to 79% APR over the course of 24-week repayment terms.
Fundbox only offers loans up to $100,000, similar to QuickBooks Capital, making it a lender of choice for businesses needing a small amount of funding for payroll or inventory. It also has the shortest repayment terms on our list, up to 24 weeks, making it potentially too inflexible for larger projects that require substantial funding and longer repayment terms to be sustainable.
Fundbox stands out due to its low minimum qualifications. Borrowers with at least three months in business can qualify based on their revenue, growth, and overall business health. This makes it a great bad credit business loan for borrowers who are having issues qualifying with their existing credit profile.
What Fundbox Is Missing
Fundbox is one of the easiest and fastest business loans to obtain, and it offers a flexible form of financing. Although it’s useful in the short term, borrowers planning on using this credit line for an extended period should consider its costs closely. Although the starting APR is only 10%, it can be as high as 79% based on a single 24-week draw, and could potentially have a lasting negative impact on cash flow.
Business owners leave positive Fundbox reviews, citing its low minimum qualifications and recommending it to other borrowers struggling to receive funding. There were some negative reviews of Fundbox centered on the short repayment terms and high overall cost of funding that it offered some businesses.
How to Apply With Fundbox
Fundbox offers borrowers the option to integrate their business accounting software for quick funding. It takes a median time of 3 minutes from application to approval, and business owners can qualify for funding up to $100,000. APRs start at 10% but can be as high as 79% for borrowers who choose not to take advantage of early repayment discounts.
National Funding: Last-resort Financing Based on Credit Card Receivables
National Funding offers a merchant cash advance based on credit card receivables with low minimum qualifications. However, merchant cash advances from National Funding and other lenders are typically expensive, with APRs ranging from 30% to 150% or higher. This type of financing also requires daily automatic payments, so borrowers should only use it as a last resort after evaluating other options.
National Funding Rates & Fees
A merchant cash advance from National Funding should be the last resort for business owners after they exhaust other financing options. This is because starting APRs are 30% and can be as high as 150% for even the best merchant cash advances. While there are no origination fees or prepayment penalties, business owners don’t receive a prepayment discount, so resulting APRs can be even higher.
National Funding Terms
Business owners can receive approval to borrow up to $250,000 from National Funding. Repayment terms leave something to be desired, with a daily requirement based on credit card receivables. National Funding does not include taxes and tips from credit card receivables, which can increase costs and impact business cash flow.
National Funding Qualifications
Merchant cash advances are a final consideration for business owners unable to qualify for other forms of financing. Borrowers only need four months of credit card statements and monthly receivables over $3,000 to qualify for funding. While this may appeal to a small set of business owners, it is unlikely to be the best option for most small businesses.
What National Funding Is Missing
National Funding’s merchant cash advance is a last resort financing option for business owners who are having trouble qualifying with other lenders and face serious cash flow and business continuity issues. This type of financing is expensive and business owners should take the time to evaluate the potential impact that payment scenarios can have on funding.
National Funding Reviews
National Funding reviews are positive and business owners appreciate the fact that there is a lender that offers funding where other financing alternatives are not available. However, there are also negative reviews, primarily concerning the cost and repayment terms of a merchant cash advance, which business owners should consider before applying.
How to Apply With National Funding
Business owners can apply online for a National Funding merchant cash advance in minutes and receive funding as soon as the next day. Applicants can qualify to borrow up to $250,000 based on credit card receivables at a starting APR of 30%. We recommend that borrowers evaluate other financing options before applying because of the high overall cost of funding.
Pros & Cons of Fora Financial
Fora Financial business loans are great for business owners with low personal credit scores needing quick funding and the option of receiving a prepayment discount. However, Fora Financial reviews and our evaluation of Fora Financial business loans raise potential drawbacks, such as the high cost of funding, frequent payments, and high annual revenue requirements.
Pros of Fora Financial
Pros of Fora Financial include:
- Quick funding speeds: Fora Financial can provide funding as soon as the next day, making it a great option for business owners wanting funding to address an immediate issue.
- Low personal credit score requirement: Fora Financial business loans only require a 500 or higher personal credit score, making it a potential financing option for business owners with an imperfect credit history.
- Prepayment discounts: Borrowers can receive a discount for up to half of the repayment term worth of interest. This makes Fora Financial business loans a great option for borrowers who plan on repaying their loan early.
Cons of Fora Financial
Cons of Fora Financial include:
- High cost of funding: APRs for a Fora Financial business loan can exceed 100% APR, and were the primary concern noted by borrowers in Fora Financial reviews.
- Daily or weekly required payments: The frequent payments required that borrowers must make on Fora Financial business loans are another major drawback. These payments can make it much more difficult for small business owners with seasonal cash flows to manage payments.
- High annual revenue requirement: Businesses earning less than $145,000 in annual revenue can’t qualify for funding with Fora Financial. This puts its business loans out of reach for low-revenue businesses that are typically most in need of financing.
Fora Financial business loans offer borrowers an option for quick financing up to $500,000 with low minimum personal credit score requirements. The APR that borrowers pay starts at 14% but can exceed 150%. There are several alternatives available for borrowers needing easier requirements, lower rates, faster funding, and less frequent payments.
One of the top alternatives to a Fora Financial business loan is BlueVine. It offers funding up to $250,000 with weekly payments over six or 12 months. APRs start at 18.2% but cap out at 78%, making its loans potentially more affordable for the average borrower. The application and approval process takes less than 15 minutes and funding is available via wire transfer as soon as the same day.