Forward Financing Small Business Funding Review

About Forward Financing

Forward Financing

Forward Financing is a leading provider of small business financing throughout the US. Our team of professionals works to help companies access the working capital they need, while allowing them to focus on running their business. The simple application process means a business can apply, qualify, and be funded, all on the same day. We have a best-in-class customer service team that understands the challenges that small businesses face and bases approvals on performance and cash flow, as opposed to just a credit score. We pride ourselves on building long-term partnerships with our customers to help ensure success for everyone. Partner with us today to see why we have an A+ rating with the Better Business Bureau, 5-star Trust pilot reviews, and one of the highest renewal rates in the industry.

What is Forward Financing?

Boston-based Forward Financing, provides same-day financing of up to $300,000 to a wide range of small businesses. It is one of a new breed of alternative funders that offers funding options to companies whose credit or other circumstances might preclude them from borrowing from traditional lenders.

The company provides funding through future receipts sales agreements -— merchant cash advances — in which companies agree to pay a portion of their future receivables in exchange for immediate access to a chunk of working capital.

Although this kind of financing can be significantly more costly than small business loan options, it might be the only choice for some businesses with less-than-stellar credit. That’s just one of the reasons it’s important for businesses to fully research and understand any type of financing for which they apply.

Since its founding in 2012, the company has grown to more than 100 employees and has financed upwards of $300 million to more than 6,000 customers. In November 2017, Inc. magazine named Forward Financing the 15th fastest-growing business in the United States, and the third fastest-growing financial services company. In fact, the company grew an eye-popping 12,893 percent between 2014 and 2017, reaching $28.3 million in annual revenue.

That growth is in part a reflection of the sound business practices Forward Financing cultivates; the company works to be transparent, informative and consistent to those who seek its funding.

Lender highlights

  1. Funder takes a stake in future earnings. The structure of Forward Financing’s cash advance arrangement means that customers agree to pay a portion of their earnings from future receipts for a period of time in exchange for upfront funds.
  2. Extremely fast but expensive. With funds available the same day in many cases, Forward Financing helps companies that need a rapid cash infusion, although customers pay very high factor rates, as mentioned earlier.
  3. Dedicated adviser. An account executive guides each applicant individually through the process of securing funding.

Compare small business loan offers

What Forward Financing offers

Forward Financing offers merchant cash advances, which means that lenders purchase a portion of the customer’s future receipts instead of being repaid the traditional way.

Merchants remit funds due by holding back a portion of daily credit/debit card sales. This structure means that there is no set amount of time it will take to pay back the funding; repayment time is based on the business’ cash flow. The company, however, estimates its funding based on an assumed repayment time of four to 12 months.

Forward Financing’s factor rate varies widely, however, in part because of its focus on approving a wide range of customers quickly and transparently.

Forward Financing: At a glance
Financing Product Financing Amount Repayment Term Fees Time to funding
Merchant cash advance $5,000 to $300,000 No fixed term Processing fee: $300 to $3,000 3 hours to approval; same-day funding once contract is signed


Eligibility requirements

FINANCING product Annual revenue Min. business credit score or personal credit score Time in business
Merchant cash advance $100,000/year No min. 3 months


Additional eligibility factors

Companies in open bankruptcy are ineligible for this financing.

Businesses that are not eligible for Forward Financing funding:

Forward Financing doesn’t fund “vice industries,” such as marijuana, gambling, adult content or gun sales. Any other eligible business anywhere in the U.S. can receive financing.

How to apply for financing with Forward Financing

The online application process takes 10 minutes, and customer service representatives are available to guide you through the process. Approval will come within three hours, and funding can be received on the same day if all documentation is received by 4 p.m. EST.

Information and documents needed to apply:

  • Owner’s name
  • Owner’s Social Security number
  • Business name
  • Business employer ID or tax ID
  • Business’ recent bank statements


Pros Cons
  Very fast — 10-minute application and same-day funding   So expensive that companies should look for any other option before applying
  Good customer service provided by dedicated account executives   Requires giving the company a stake in future income
  Offers capital to customers frozen out of traditional funding options   High processing fee on top of factor rates

Who is the best fit?

Forward Financing is best for businesses who have bad credit or other problems that keep them from being eligible for more affordable traditional financing options. The same-day service also makes these advances an appropriate option for businesses who need cash immediately for an urgent business concern.

Fine print

Forward Financing charges a considerable processing fee on top of its high factor rates. Its website offers scant information on the costs, perhaps to keep them from scaring away potential customers.

The company prides itself on being transparent with those who seek funding, assigning a dedicated adviser to each applicant and holding a “funding call” before sending the money to make sure the customer understands the rates, fees and logistics of the financing he or she is accepting.

Forward Financing reserves the right to file a UCC-lien if necessary to legally indicate that it has an interest in the business’s future receipt, but does this on a case-by-case basis.

The bottom line: How Forward Financing stacks up

Forward Financing is recognized as a well-run, fast-growing company, but its success is built on offering expensive financing products to businesses that might not have other options. This type of financing should be a last resort, but if it is indeed the best fit, Forward Financing is a reputable and trustworthy company that provides it.

Compare small business loan offers