Forward Contract Highlights

Our funding agreement is full of important information that you’ll need to make sure you’ve read and fully understand. Here are just a few highlights to help you connect the dots and succeed with revenue-based financing from Forward.

Key Terms and Definitions

  • Purchase Price – The amount of working capital that Forward will provide to the customer. This is called a Purchase Price as it’s the amount of money that Forward is paying to purchase the customer’s future receipts.
  • Net Purchase Price – The total amount to be deposited into the customer’s business bank account, after deducting any processing fee, wire fee and prior financing payoff.
  • Wire Fee (Optional) – Funds are transferred by ACH for free. However, if a customer selects a wire transfer, there is a fee that will be deducted from the Purchase Price.
  • Weekly/Daily Payment – The amount that will be withdrawn from the customer’s business bank account each week or day, unless adjusted due to a revenue decline.
  • Receipts – The revenue a business earns from its customers in exchange for its sale of goods or services.
  • Amount Sold – The total amount of future receipts that the customer is selling to Forward. This is the amount that the customer will remit to Forward over the course of the transaction until they are paid in full.
  • Monthly Percentage – This is the percent of the business’s monthly receipts that the customer has agreed to provide Forward, until the Amount Sold has been remitted in full.
  • Reconciliation – If a customer finds themselves with a decline in revenues to a point where they are remitting more than the Monthly Percentage of their revenues, our product offers two payment relief options, which are also described in our contract:
    • First, the customer can request a temporary downward adjustment of their daily or weekly payments.
    • Second, if a customer has remitted a dollar amount that equals more than the Monthly Percentage of revenues in any given month, the customer can submit this information and receive a refund of the overage paid while their revenues were in decline. The refunded amount is still owed to Forward. So a refund may lengthen the estimated payment term, but it will not change the Amount Sold.


Important Concepts to Understand

  • Revenue-Based Financing Is Not a Loan – Our product is a purchase-and-sale agreement where we are purchasing a set amount of the business’s future revenue. We will collect that revenue through daily or weekly payments. Unlike a traditional loan, if revenue goes down, so can these payments. And interest will never accrue. That’s because the business pays a set total dollar amount, as agreed upon upfront, no matter how long the remittance period may last.
  • Follow Contract Terms to Access Our Product Benefits – To be in good standing and take advantage of all of our valuable product benefits, such as payment relief, payment reconciliation, and no personal liability, you must follow the terms of our agreement. For example:
    • If a customer repeatedly refuses to send financial statements to demonstrate a decrease in revenue after incurring repeated insufficient fund bounces, they would be in breach of their contract and not eligible for payment relief or a refund of any overages paid while their revenue was in decline.
    • If a business has no revenue, the business owner will not be personally responsible to pay. However, the owner does represent in the contract that they will not cause their business to block Forward’s access to receipts, hide funds, or otherwise deprive Forward of existing receipts it is entitled to. If the owner were to do so, they would be in breach of our contract and may be held personally liable. So if your revenues are in decline, please contact us as soon as possible and we’re happy to adjust your payments.
  • Forward Financing Is Independent from Brokers – Forward is the funder that provides businesses with revenue-based financing and is completely independent of any broker or Independent Sales Organization (ISO) that acted as an intermediary. Your entire agreement with Forward is written and explained within your contract..


If you ever need more information or have specific questions on your contract, our team is here to help via live chat, phone (888-244-9099), or email.