FAQs

General

Who is Forward Financing?

Forward Financing is a leading provider of working capital to small businesses nationwide. Since 2012, more than 42,000 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.

Credit Reporting

Can working with Forward Financing affect someone’s credit?

Applying for financing with Forward only requires a soft credit pull and does not affect an individual’s credit.

Once a customer has received working capital from Forward, we report on the customer’s performance against the terms of their contract on a monthly basis to Experian, who in turn calculates business credit scores. Our part is simply reporting whether each customer is in good standing or poor standing.

  • Good Standing: The customer is either making payments or engaging with our Account Servicing team. If a customer is engaged with us but their revenues show they are not required to make payments, we will report them as in good standing.
  • Poor Standing: The customer has not made a payment for 30+ calendar days and also has not engaged with our Account Servicing team in 30+ calendar days. Failure to pay will not result in being reported as in poor standing, as long as the customer is engaged with us.

We consider a customer engaged if they are communicating with our Account Servicing team, providing any requested information (e.g., bank statements) per their agreement, and generally working with us towards a resolution.

Experian operates using its own algorithm, and we have no knowledge of the impact of our data within its algorithm. It is important to remember we are simply reporting whether a customer is in good or poor standing with Forward Financing.

Our Account Servicing team can be reached at 888-954-4377, Monday through Friday, 9 AM to 6 PM Eastern Time.

Why is Forward able to report credit on revenue-based financing?

When a customer receives revenue-based financing, they are incurring an obligation to provide us with a certain amount of their future revenues. And as a funder, Forward has the right to share information with credit reporting entities, as indicated in our standard customer contract.

It is not only companies that extend credit that report to credit agencies. In fact, there are many different types of companies that provide information to credit reporting agencies that don’t grant credit themselves, such as utility companies, employers, landlords, and more. Experian has some helpful information on alternative and non-traditional data it may use to determine credit scores.

Does Forward report on business or personal credit?

Forward only reports on active customers’ business credit. We do not report on personal credit.

How can I find out if I’m in good standing or poor standing with Forward?

To be in good standing with Forward, you must be making payments or engaging with our Account Servicing team.

We consider a customer engaged if they are communicating with our Account Servicing team, providing any requested information (e.g., bank statements) per their agreement, and generally working with us towards a resolution.

If you are actively paying or actively engaged with us in the last 30 calendar days, you would be reported as in good standing.

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 July 2022, the Commonwealth of Virginia requires (1) commercial financing providers to deliver a “Sales-Based Financing Disclosure Form” to Virginia small businesses before entering into a revenue-based financing transaction and (2) ISOs to be registered as “sales-based financing brokers” to refer Virginia-based customers for sales-based financing. This law applies to Forward Financing and our product. Accordingly, we have adjusted our process and requirements in compliance with this new law. Learn more about Virginia legislation.

Based on legislation that will go into effect as of December 2022 in California and January 2023 in Utah, Forward will be required to obtain a signed disclosure form from customers before funding any small businesses operating in these states as well. 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