Have you been contacted by Forward Financing regarding an outstanding business debt? Here’s how to find out if this firm is legitimate, how to handle communications with them, and how to resolve your Forward Financing business financing debt in the best way possible.
Who is Forward Financing?
Forward Financing is a financial technology company that provides small businesses with fast and flexible funding solutions. Founded in 2012 and based in Boston, Massachusetts, the company specializes in offering merchant cash advances, which allow business owners to receive a lump sum of capital in exchange for a percentage of their future sales.
Is Forward Financing Legitimate?
Yes, Forward Financing is a legitimate financial technology company. They have been in operation since 2012 and have served thousands of small businesses across the United States. The company is known for providing merchant cash advances and other funding solutions tailored to the needs of small business borrowers.
That said, MCA companies should be approached with caution due to the nature of their services and the potential for high costs. MCAs are not loans, so they aren’t subject to the same regulations as traditional loans. This means they can be more flexible but also riskier. They also come with high fees, which can significantly impact a business’s cash flow.
Forward Financing Reviews and Complaints
Many reviews on Trustpilot are positive about Forward Financing. The company has a 4.8-star rating based on over 2,500 reviews, indicating a high level of customer satisfaction.
Forward Financing is also accredited by the Better Business Bureau (BBB) and holds an A+ rating.
Even so, some customers have complained about the high fees and interest rates associated with the merchant cash advances provided by Forward Financing. This type of financing can be expensive, and some users have found the costs to be higher than expected.
There are also complaints about the lack of detailed fee information on their website, which can make it difficult for potential customers to fully understand the financial commitment before signing up. According to the BBB, there have been 12 complaints closed in the last three years, with five closed in the past 12 months. These complaints often revolve around service issues and misunderstandings about repayment terms.
Dealing with Forward Financing
If you’re a current or former customer of Forward Financing, there may be situations where you need to know how to how to proceed in dealing with the company. Here’s what you should know.
What Should I Do If I Receive a Letter or Call from Forward Financing?
First, make sure the communication is indeed coming from Forward Financing. Look for official branding, contact information, and verify the phone number or email address. If in doubt, contact Forward Financing directly using contact information from their official website, not from the letter or call you received.
If it’s a letter, read it thoroughly to understand why they are contacting you. It could be related to a financing offer, an existing account, or a request for additional information.
If it’s a call, listen carefully, ask questions, and take notes. Make sure to get the caller’s name, their position, and the reason for the call.
If the letter or call involves legal or complex financial matters, consider consulting with a lawyer or financial advisor. They can provide expert advice on how to proceed.
Handling Communications From Forward Financing
Be sure to keep copies of all letters, emails, and notes from phone calls. This documentation can be crucial if any disputes or questions arise later. Limit how much personal and financial information you share with the company until you can consult with a lawyer and decide on next steps.
Knowing Your Rights When Dealing With Forward Financing
When dealing with Forward Financing or any financial services provider, you have specific rights designed to protect you as a consumer. Understanding these rights can help ensure you are treated fairly and can make informed decisions. Here’s an overview of the key rights you typically have:
1. Right to Transparent Information
You have the right to clear, understandable information about the terms of any financing agreement. This includes interest rates, repayment terms, any fees, and the total cost of the financing.
All costs associated with the financing, including any potential penalties for late payments or early repayment, must be disclosed before you agree to the terms.
2. Right to Privacy
Your personal and financial information must be protected according to applicable data protection laws. You have the right to know how your information is used and by whom.
Your information should not be shared with third parties without your consent, except as required by law.
3. Right to Fair Treatment
You should not be discriminated against based on race, religion, nationality, gender, marital status, age, or disability. Forward Financing must treat you honestly and fairly, without engaging in deceptive practices.
4. Right to Redress
You have the right to prompt correction of any errors in your account statements or transactions. You should also have access to a fair and efficient process for resolving complaints and disputes.
5. Right to Withdraw
Depending on local laws, you may have the right to withdraw from the credit agreement within a specified period after signing, usually without penalty.
Common Legal Issues With Forward Financing
Merchant cash advance providers like Forward Financing operate in a niche but rapidly evolving sector of financial services. This brings about unique legal challenges and considerations.
For example, the MCA industry is not as heavily regulated as traditional lenders, which can lead to uncertainties and inconsistencies in compliance requirements. MCA funders must navigate state and federal regulations that may not be specifically tailored to their operations.
Since MCAs are technically not business loans but advances on future sales, they generally are not subject to traditional usury laws that cap interest rates. However, there is ongoing legal debate and litigation regarding whether certain MCA agreements should be reclassified as loans, which would make them subject to these laws.
What Happens If You Get Sued by Forward Financing?
If you get sued by Forward Financing, it’s important to understand the legal process and take appropriate steps to protect your interests. Here’s a general outline of what happens and how you should respond:
1. Service of Process
You will be officially served with legal papers, typically a summons and complaint, which outline the nature of the lawsuit and the claims being made against you.
2. Review the Documents
Review the complaint and summons carefully to understand the allegations and claims. Note the deadlines for responding to the lawsuit.
3. Seek Legal Advice
Immediately seek legal advice from an attorney who specializes in business litigation or debt-related cases. A debt relief attorney can help you understand your rights, the potential defenses, and the best course of action.
4. Responding to the Lawsuit
You will need to file a formal response, called an “answer,” to the complaint within the timeframe specified in the summons (typically 20-30 days). Your MCA attorney will help you identify possible defenses, such as misrepresentation, breach of contract by Forward Financing, or lack of jurisdiction.
5. Discovery Process
Both parties will engage in discovery, where they exchange relevant information and documents related to the case. Work with your attorney to gather all necessary evidence to support your defenses and counterclaims.
6. Negotiations and Settlement
Many lawsuits are settled out of court. Your MCA debt help attorney may negotiate with Forward Financing to reach a settlement that is favorable to you.
7. The Trial
If a settlement is not reached, the case could go to trial. During the trial, both sides will present their evidence and arguments. Your attorney will represent you, present your defenses, and cross-examine Forward Financing’s witnesses.
After both sides have presented their cases, the judge or jury will render a decision. If you lose, you may be required to pay the amount claimed by Forward Financing plus any additional costs or damages.
How to Negotiate with Forward Financing
If you decide to negotiate with Forward Financing regarding your MCA debt and repayment terms, follow these important steps:
- Understand your debt: Before negotiating, gain a clear understanding of the debt’s details, including the total amount owed. Review any documentation or communication from Forward Financing for this information.
- Come up with an offer: Consider what you can realistically afford to pay. This could be a lump sum offer (typically less than the total debt) or a feasible installment plan.
- Keep all communication in writing: Conduct negotiations through letters or emails to maintain a clear record of all agreements and discussions.
- Stay calm: Always maintain a professional demeanor in your communications. Being courteous and respectful can facilitate a smoother negotiation process.
- Seek expert advice: Consider consulting a debt settlement attorney. They can provide valuable advice, help you understand your rights, and may negotiate more effectively on your behalf.
Filing a Complaint against Forward Financing
If your rights have been violated by Forward Financing or you have another type of complaint against the company, you can report the issue with the following organizations:
- Consumer Financial Protection Bureau (CFPB)
- Better Business Bureau (BBB)
- State Attorney General
- Federal Trade Commission (FTC): You can file a complaint with the FTC, which oversees debt collection practices.
Forward Financing phone number and address
Forward Financing’s contact details are as follows:
- Phone Number: 1-888-244-9099
- Address: 53 State Street, 20th Floor, Boston, MA 02109
For additional inquiries, you can email them at info@forwardfinancing.com. They are available Monday through Friday, from 9 AM to 6 PM Eastern Time.
How Can a Debt Settlement Attorney Help?
An MCA debt settlement attorney can be extremely helpful when dealing with a collections account and MCA debts you can no longer pay. They can negotiate with creditors to potentially reduce the debt amount, provide legal guidance, represent you in court (if necessary), assist in validating the claimed debt, and ensure any settlement agreements are in your best interest.
Tayne Law Group offers a free phone consultation with one of our experienced debt relief attorneys. If you owe MCA debt to Forward Financing or are facing a lawsuit, there’s a good chance we can help. Contact our offices by calling (866) 890-7337 or fill out our short contact form. We never share or sell your information, and all conversations are confidential.
