Forward Financing Merchant Cash Advance Review 2023
Loan Amount
Factor Rate
Terms
Min Credit
Time to Fund
Company Profile
Forward Financing is a leading provider of working capital to small businesses across the United States. Since its inception in 2012, the company has served over 45,000 small businesses, offering them fast, flexible, and reliable funding solutions. The company attributes its success to its diverse and driven team of over 450 people, approximately 200 based in the U.S., and 250 internationally. Forward Financing is a 100% employee-owned company, boasting a 4.7 Glassdoor rating across 170+ anonymous employee reviews, with 92% of employees recommending Forward to a friend and 98% approving of the CEO.
The company prides itself on maintaining an A+ culture across its entire team, whether they’re working in-office, from home, or elsewhere. They believe in treating their people well, caring about them as individuals, not just workers. A career at Forward is described as challenging, fulfilling, and fun.
Products & Services
Forward Financing specializes in providing working capital to small businesses that are often underserved by traditional financial institutions, such as banks and credit unions. The company works with businesses in over 700 industries, ranging from physicians and restaurants to repair shops and retailers. They offer a unique product called revenue-based financing, which provides businesses access to an upfront sum of working capital in exchange for a set amount of the business’s future revenue. The business then remits an agreed-upon monthly percentage of its revenues, via daily or weekly payments, until the total contracted amount has been paid in full. Forward Financing offers funding between $5,000 and $300,000 in their business cash advance program.
Pros and Cons
Pros:
1. Forward Financing provides fast, flexible, and reliable funding solutions for small businesses.
2. The company works with businesses in over 700 industries, making it a versatile funding source.
3. They offer a unique product called revenue-based financing, which is flexible and suited to small businesses.
4. Forward Financing has a simple application process and typically provides same-day approvals.
5. The company has a strong reputation with a high Glassdoor rating and positive employee reviews.
Cons:
1. The company does not service some industries such as those related to adult entertainment, gambling, firearms, or illicit substances.
2. The cost of funding can vary depending on the customer's unique situation at the time of funding.
3. The company uses a revenue-based financing model, which might not be suitable for all businesses.
4. Forward Financing only operates in the U.S., limiting its reach for businesses based internationally.
5. The company requires a minimum of $10,000 in monthly revenue and a 500+ credit score, which might exclude some small businesses.
Ideal Customer
The ideal customer for Forward Financing is a small business based in the U.S. that has been in operation for at least one year. The business should have a minimum monthly revenue of $10,000 and a credit score of 500 or above. Forward Financing is particularly suited to businesses that are underserved by traditional financial institutions and need fast, flexible funding solutions. The company works with businesses in over 700 industries, making it a versatile funding source for a wide range of small businesses.
Required Documentation
To apply for funding with Forward Financing, the company requires the owner's name and social security number (SSN), the business name and Tax ID or EIN, and a few months of the most recent bank statements. The application process is simple and takes most applicants less than 10 minutes to complete.
Industries and Restrictions
Forward Financing works with businesses in over 700 industries, including higher-risk industries such as trucking and construction. However, there are some industries the company does not service, such as those related to adult entertainment, gambling, firearms, or illicit substances.
State of Operations
The company operates nationwide, providing funding to businesses across the United States. However, based on legislation effective as of December 2022 in California and January 2023 in Utah, Forward Financing is required to provide a disclosure form to customers before funding any small businesses operating in these states. The company has adjusted its process and requirements to ensure compliance and to help its customers navigate any changes to how they work with Forward Financing.
Basic Qualifications
To qualify for funding from Forward Financing, a business must be U.S.-based with a minimum of one year in operation, at least $10,000 in monthly revenue, and a credit score of 500 or above. Occasionally, the company's underwriting team may extend eligibility to businesses that do not meet all of these criteria.
Collateral or Guarantees
The company does not mention any specific collateral or guarantees required for their products. However, as part of their revenue-based financing model, businesses authorize Forward Financing to debit their bank account directly according to the amount and frequency specified in their financing agreement.
Alternatives
While Forward Financing offers a unique and flexible funding solution for small businesses, there are other options available. Traditional bank loans, credit unions, and other online lenders may provide alternative financing solutions. Crowdfunding, angel investors, and venture capital are also potential sources of funding, particularly for startups and high-growth companies. It's important for businesses to explore all available options and choose the one that best fits their needs and circumstances.