resources
Back

Forward’s Loan Contract Highlights

Your loan 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 a loan from Forward.

Key Terms and Definitions

  • Loan Amount: The total amount of working capital that Forward provides to the customer.
  • Total Amount Disbursed to Borrower: The total amount to be deposited into the customer’s business bank account after deducting any applicable fees or prior financing payoffs.
  • Wire Fee (Optional): Funds are transferred by ACH for free; however, if a customer selects a wire transfer, a fee will be deducted from the Loan Amount.
  • Required Payments: The set daily or weekly amount that will be auto-debited from the business bank account on a fixed schedule.
  • Total Repayment Amount: The total amount (including pre-computed interest) that the customer is responsible for repaying by the term of the loan.
  • Loan Maturity Date: The specific date at which point the final balance of the loan is due in full.
  • Courtesy Payment Support: While traditional reconciliation does not apply to loans because payments are fixed regardless of revenue, our team offers support options if your business needs assistance meeting its fixed schedule.
  • Early Payment Discount: An incentive that may be available to customers who choose to pay off their remaining balance ahead of the scheduled maturity date.

 

Important Concepts to Understand

  • This is a Fixed-Term, Installment-Based Loan with Pre-Computed Interest: This means your total cost is clearly stated and locked in upfront. Because the payments are for a set dollar amount on a fixed schedule, they do not fluctuate with your business revenue.
  • Follow Contract Terms to Maintain Good Standing: To remain in good standing and ensure your business remains eligible for benefits like early payment discounts, you must adhere to the fixed payment schedule.
  • Personal Guarantee: This loan is supported by a personal guarantee, meaning the business owner is wholly responsible for the total repayment of the debt.
  • Maturity Obligations: The total payback amount must be satisfied by the maturity date.
  • Dedicated Support: If your business faces an unexpected challenge, please contact our Account Servicing Department immediately to discuss options.
  • Forward Financing Is Independent from Brokers: Forward is the direct funder for your small business loan and is completely independent of any broker or Independent Sales Organization (ISO) that may have assisted with your application. Your entire legal agreement is contained within your Forward loan 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.