FAQs

General

Who is Forward Financing?

Forward Financing is a leading provider of working capital to small businesses nationwide. Since 2012, more than 40,000 small businesses have trusted us to provide them with fast, flexible, and reliable funding to fuel their success.

How can you help my small business?

Forward Financing works with businesses in over 700 industries ranging from physicians and restaurants to repair shops and retailers. We specialize in making capital accessible to small businesses that are underserved by traditional financial institutions, such as banks and credit unions. Because we look at your real-time business cash flow — not just your historical financials and personal credit score — we’re able to deliver financing solutions to more small businesses than most other funding sources.

What is revenue-based financing?

Revenue-based financing is a financing arrangement that will provide you upfront capital in exchange for an agreed upon portion of your future monthly revenues (up to a set total amount).

How much funding can I access through Forward Financing?

Forward Financing offers funding between $5,000 and $300,000.

What is the APR for your product?

Actually, with revenue-based financing, there is no interest and therefore no true APR (Annual Percentage Rate). Each customer pays a fixed amount that does not change, regardless of how long it takes to pay in full.

Calculating APR assumes a fixed payment amount and a fixed payment term. With our product, if a business’ revenue decreases, they can request to have their payments reduced or refunded – so payments aren’t always the same for the entire duration of the payment period. And if payments are reduced or refunded, it would take longer to pay their balance – so payment terms can also vary.

The payment relief and flexibility on payment terms that are built into our product are a big part of what makes revenue-based financing different and uniquely suited for small businesses. APR does not capture the value of these benefits and instead requires assumptions that apply to loans, not revenue-based financing. For these reasons, APR cannot accurately reflect the cost of our product.

How much does your funding cost?

With revenue-based financing, customers receive a sum of upfront capital, in exchange for a set, agreed-upon amount of their future revenue (the money the business will bring in).

  • Forward to Customer =  $ amount of upfront capital (minus a processing fee)
  • Customer to Forward =  $ amount of future revenue (in weekly or daily payments)

The processing fee varies by deal, depending on the amount of upfront capital. The amount of future revenue the customer pays also varies by deal, based on the customer’s unique situation at the time of funding – financial history, industry, time in business, and more – as determined by our underwriting team. We are committed to transparency, and the customer always sees exact dollar amounts on the front page of their contract before they decide to move forward with the funding.

Please note that we’ve simplified this language to clearly explain how revenue-based financing works. In our contract, upfront capital will be listed as “purchase price,” and future revenue will be listed as “amount sold.”

Application

What are the minimum eligibility requirements to qualify for funding from Forward Financing?

Typically, to qualify with Forward Financing, you must be a U.S.-based business with:

  • 1 year minimum time in business
  • At least $10,000 in monthly revenue
  • 500+ credit score

Rarely, our underwriting team may decide to extend eligibility to businesses who do not meet all of these criteria.

What information do you need from me to apply?

Forward Financing has one of the simplest application processes in the industry because we only ask for what we absolutely need:

  • Owner’s name and social security number (SSN)
  • Business name and Tax ID or EIN
  • At least three months of your most recent bank statements
Will applying with Forward Financing impact my credit score?

No. We only perform a soft credit inquiry, which does not impact your credit score.

How quickly will I know if I’m approved for funding?

You will typically know if you are approved for funding within hours. For most of our applicants, same-day approvals are the norm, but if you submit your application after typical business hours, you may not receive a response until early the following morning.

Are there any industries that Forward Financing will not fund?

While we provide financing to more than 700 industry segments, including higher-risk industries such as trucking and construction, there are some industries we do not service such as those related to adult entertainment, gambling, firearms, or illicit substances.

How long will it take me to complete my application?

Applying with Forward Financing takes most applicants less than 10 minutes.

When can I expect to see the money in my account?

If your deal closes before 3:00 PM ET, you will have the option of receiving money in your bank account the same day via wire transfer (fees may apply). Otherwise, your funds will arrive via ACH transfer the next business day.

How do you determine what amount I’m eligible for?

The amount of financing for which you qualify is determined by a number of factors including, but not limited to, your business cash flow, time in business, and your business and personal credit history.

Funding

What if I already have a traditional bank loan?

Our product is designed to complement traditional financing. As long as you meet our requirements, we can still provide you with financing without affecting your other obligations.

Are there any restrictions on how I can use my funding?

Though you will be required to specify what you intend to use your revenue-based financing for, you are free to spend the money for any legal business purpose, such as purchasing inventory, repairing equipment, renovations, expansion, reducing debt, and emergency expenditures. You may not use the funds for any personal, family, or household purposes.

Payment & Account Management

How do I submit payments?

As part of revenue-based funding, you will authorize Forward Financing to debit your bank account directly according to the amount and frequency specified in your financing agreement.

What if I want to pay the full amount early?

You can pay off your full account balance at any time with no extra charges. In some instances, Forward Financing may even offer a discount for early payment in full, though certain restrictions may apply. It is recommended that you review your customer agreement or speak directly with your Account Executive for details on your prepayment options.

When am I eligible for renewal?

You will typically be eligible for a renewal once you have paid about half of your original account balance, subject to satisfactory payment performance. The exact paydown required for you to be eligible for a renewal will be communicated to you by your Account Executive prior to funding.

How can I track my account with Forward Financing?

Forward Financing provides customers with an online portal where they can view information about their financing including the outstanding balance, payment history, and renewal eligibility. Should you have additional questions, you can call us at 1-888-244-9099 to speak with one of our dedicated Account Executives.

For existing customers, login to your online portal here.

What if I need to adjust my payments?

Please email the Account Servicing team at and they can work with you to adjust your payments.

If I need help with my account or have questions throughout the process, can I talk to a real person?

Absolutely. Our expert Account Executives are standing by to answer your questions. Give us a call Monday through Friday between 9:00 AM and 6:00 PM ET at 1-888-244-9099.

Do you withdraw payments on holidays?

We only withdraw payments from your account on days when banks are open, so you will not be debited on any U.S. bank holidays.

If you don’t withdraw a payment on a holiday, will you withdraw two payments the next day?

We will never double debit your account after a holiday.

How do I request a payoff letter?

Please contact your Account Executive directly to request a payoff letter.

Legislation

What legislation has been passed affecting commercial financing?

Based on legislation that went into effect on July 1, 2022, the Commonwealth of Virginia requires commercial financing providers to deliver a “Sales-Based Financing Disclosure Form” to Virginia small businesses before entering into a revenue-based financing transaction. This law applies to Forward Financing’s product. Accordingly, we have adjusted our process and requirements to obtain a signed disclosure form from each Virginia customer, in compliance with this new law. Learn more about Virginia legislation.

Based on legislation and regulations that go into effect in December 2022, California will also require a disclosure form. We are actively working to adjust our process and requirements to  ensure compliance and to help our ISOs and customers navigate any changes to how they work with us.

How will Forward Financing be impacted by further legislation of the commercial financing industry?

While none of us know for sure what further legislation will or will not be passed, we can share our steadfast commitment to delivering financial opportunity to small businesses and being transparent and ethical in doing so. We are also actively involved in the discussions being held around regulating small business financing for a couple of reasons:

  • To educate legislators about revenue-based financing and how it supports small businesses
  • To closely monitor any legislation that could affect our customers and ISOs, so we can continue to help them navigate changes to how they work with Forward