Fora offers small business loans with a simplified application process that allows approvals to be processed quickly.
Fora Financial business loans feature:
- Loan amounts from $5,000 to $500,000
- Terms up to 15 months
- Moderate factor rates instead of interest rates, meaning you repay a fixed flat fee on top of what you borrow
- No restrictions on how loans may be used
- Free, no-obligation quotes
- Origination fees
- Early payoff discounts
- No collateral required
- Approval not solely based on your credit score
Be aware that Fora Financial’s interest rates are handled differently than many lenders. Unlike conventional long-term lenders, Fora Financial uses factor rates instead of interest rates. Whereas repayment fees calculated based on interest rates fluctuate over time with the amount of principal still owed, a factor rate is calculated up front as a flat amount expressed as a multiplier of your original amount (such as 1.3) or as a percentage added to your original amount (such as 30%).
For instance, if you borrow $30,000 at a factor rate of 30%, you must repay $39,000.
Fora Financial doesn’t publicly disclose its factor rates on its website. You have to contact the company for a quote to find out what factor rate the lender will charge you. Third-party reviewers claim Fora’s factor rates range from 10% to 30%.
Short-term loans using factor rates usually have higher repayment terms than long-term loans. This is because short-term loans typically have lower qualification thresholds than long-term loans, representing more risk to lenders. Lenders offset this risk by charging more.
Here’s more info from our experts to help your small business thrive.