Have you been contacted by Fora Financial about an outstanding business debt? It’s important to ensure you’re being contacted by a legitimate company, verify the debt they claim you owe, and take the proper next steps to protect your business finances.
Who is Fora Financial?
Fora Financial is a business lender that provides small business loans, revenue advances, lines of credit, and more to companies.
Is Fora Financial Legitimate?
Yes, Fora Financial is a legitimate company. It’s been in business for nearly two decades and is accredited by the Better Business Bureau. In its years in business, Fora Financial has served more than 55,000 companies and written more than $4 billion in business loans.
Even though Fora Financial is a legitimate lender, there are still some concerns to look out for. Fora’s unique lending tools can be risky for small businesses and result in debt you struggle to get out of. Do your research before committing to a loan or advance with Fora Financial.
Overview of Fora Financial
Fora Financial was founded in 2008 by college roommates and business students Jared Feldman and Dan Smith. Originally named Paramount Merchant Funding, it adopted the name Fora Financial in 2013 when it adopted a more tech-forward platform to provide faster and more accurate lending decisions to small businesses.
Fora Financial boasts fast turnaround times, flexible loan terms, and hands-on customer service. It serves a variety of businesses, including construction, restaurants, retail, healthcare, transportation, automotive, wholesale, manufacturing, and more.
Fora Financial Reviews and Complaints
Fora Financial is accredited by the Better Business Bureau and has an A+ rating. While it only has a small number of reviews, it has an average customer rating of 3/5 stars. It has had a few complaints over the past several years but none within the past 12 months.
On Trustpilot, Fora Financial has more than 860 reviews, with an average customer rating of 4/5 stars. Many negative reviewers commented on a poor customer service experience, being unhappy with the amount they were approved for, and receiving spam calls after initially inquiring about a loan.
Understanding How Fora Financial Operates
Fora Financial offers several different types of business financing:
- Small business loans
- Revenue advances
- Lines of credit
- SBA loans
- Business term loans
- Equipment financing
- Accounts receivable financing
- Invoice factoring
While some of these are traditional forms of financing and are easy to understand, others are more complex. For example, revenue advances provide business cash flow based on your future revenue. In exchange, you’ll make payments as a percentage of your daily or weekly revenue. The higher your business revenue, the higher your payments.
Revenue advances are quite similar to merchant cash advances (MCAs). However, according to Fora’s website, the difference is that while MCA is based entirely on future revenue, revenue advances require proof of existing revenue to qualify.
Revenue advances and other alternative forms of business financing can provide flexibility for small businesses, but they also come with some risks. For example, the lack of a clear repayment schedule and the high interest rates can make it easy to get stuck in a cycle of debt that you’re unable to pay off.
Dealing with Fora Financial
What Should I Do If I Receive a Letter or Call from Fora Financial?
If you receive any communication from Fora Financial, start by confirming its legitimate. As we’ve discussed, Fora Financial is a legitimate company, but it’s possible you’re receiving a letter or phone call from a scammer impersonating Fora Financial.
Check the contact information on the letter and compare it to that on the company’s website. And if you’re still unsure, contact the company directly to confirm the communication is from them.
Once you know the communications are coming from Fora Financial, take steps to validate the debt — they’re required to do this in writing — and decide on your next steps. Depending on the complexity of the debt, you may also decide to consult an attorney at this point.
Handling Communications From Fora Financial
As you’re communicating with Fora Financial, it’s important to keep records of all phone calls and letters. Maintain a copy of all letters, and take thorough notes about any phone calls, including the date, time, nature of the call, and the name of the person you spoke with.
If there are any disputes about your Fora debt or they take legal action against you, you’ll want documentation of all communications later on.
Knowing Your Rights Against Fora Financial
When you’re dealing with non-traditional business loans like revenue advances, it’s easy to feel like you don’t have any rights. And while it’s true that these lending tools are less regulated than traditional loans, you still have some rights:
- Right to transparency: Fora Financial has a responsibility to be transparent about your debt. The company must provide clear and understandable terms about your debt, including interest rates and other financing costs, penalties, and more.
- Right to fair treatment: Business lenders are prohibited from discriminating against borrowers based on their race, religion, nationality, gender, marital status, age, or disability. They must also stay free of deceptive or dishonest practices.
- Right to recourse: You have a right to have any errors with your account corrected in a timely manner. And if you believe Fora Financial has treated you unfairly or illegally, you have the right to legal recourse.
- Right to legal representation: You have the right to seek legal representation at any point in your dealings with Fora Financial. Once you hire an attorney, Fora Financial must direct all of its communications to them.
The Legal Side of Fora Financial
Common Legal Issues with Fora Financial
Revenue advances and other forms of alternative financing have some benefits, but they can also be problematic for small business owners. These lending tools aren’t as heavily regulated as traditional loans, meaning it’s easier for lenders to take advantage of borrowers.
Additionally, the nature of these loans, including their uncertain payment schedules and high interest rates, can result in borrowers struggling to repay their loans. And if you can no longer make your payments to Fora Financial, you risk a lawsuit, which will only create more issues for your business.
What Happens If You Get Sued by Fora Financial
If you’re sued by Fora Financial, it’s important to understand your rights and how to protect yourself and your business. Here’s how the process is likely to work after a lawsuit:
- Receive the complaint: If Fora Financial sues you, you’ll receive a legal complaint that will outline the company’s claims and the remedy it’s seeking.
- Review all documents: Before taking any next steps, make sure you thoroughly understand the lawsuit and the terms of your business loan.
- Seek legal advice: At this point, you may wish to hire a debt relief attorney who can represent you against Fora Financial and guide you through the process.
- Respond to the lawsuit: You’ll be required to respond to the lawsuit — typically within 20 or 30 days — or risk a default judgment against you.
- Discovery process: During the discovery process, both parties will exchange relevant information about the lawsuit in preparation for trial.
- Negotiations and settlement: A lawsuit doesn’t necessarily mean you’ll have to go to court. You’ll have the opportunity to negotiate a settlement with Fora outside of court.
- Trial and judgment: If you’re unable to reach a settlement agreement, you and Fora Financial will go to court and the judge in the case will issue a judgment.
How to Negotiate with Fora Financial
Check to Make Sure Fora Financial Isn’t a Scam
Before doing any negotiating or agreeing to anything, make sure the communication from Fora Financial isn’t a scam. While Fora Financial itself is a legitimate company, the industry is one that scammers often target. To protect your business, don’t take any next steps until you verify the communication you’ve received is legitimate.
Strategies for Negotiating with Fora Financial
It may be in your best interest to negotiate a settlement with Fora Financial rather than taking your case to court. Here are some strategies that can help you with a successful negotiation:
- Understand the terms of your agreement: Before you start negotiating, it’s critical that you understand all the terms of your loan agreement with Fora, including your loan balance, interest rate, other loan fees, nonpayment penalties, and more.
- Get organized: Take some time to gather up all of your records, including a copy of your loan agreement and any communications you’ve received from Fora dating back to your original loan inquiry and application.
- Have a goal in mind: You may have more success negotiating if you go in with a number in mind that you can propose. Look at your finances to determine how much you can afford to pay, either as a lump sum or an installment plan (though you can often pay less with a lump sum).
- Keep copies of everything: Throughout your negotiations, make sure to hang onto copies of any letters or emails you receive, and take thorough notes of any phone calls in case you need to rely on those later.
- Remain professional: While it’s easy to get frustrated when you’re dealing with debt collection, the process will go more smoothly — and likely more in your favor — if you can remain calm and professional throughout.
- Seek legal advice: Rather than navigate this process alone, consider hiring a debt relief attorney to help. Even if you aren’t sure about hiring an attorney, many offer free consultations, which could help you decide on your best next steps.
How to Protect Against Fora Financial
Steps to Take If You’re Contacted by Fora Financial
When you’re contacted by Fora Financial or any other lender, it’s important to take steps to protect yourself and your business. As we mentioned, the first thing you should do is verify the communication is legitimate, which you can do by contacting Fora directly (using the contact information on the website, not the letter you received).
Next, you should ask Fora Financial to validate the debt. The company is required to provide a written validation of the debt if you request it, and you shouldn’t proceed any further until they’ve done this.
Finally, consider the best next steps for you. Once you know the communication and the debt are legitimate, consider what your ideal resolution is. For example, do you want to pay off the full debt? Settle for a lower amount? Go to court? No matter what you decide, consider speaking with a debt relief attorney who can guide and advise you through the process.
Filing a Complaint Against Fora Financial
If you believe you’ve been treated unfairly or illegally by Fora Financial, you have the right to legal recourse, and that includes filing a complaint through legal channels. Here are a few places to file complaints against Fora Financial:
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- State Attorney General
- Better Business Bureau (BBB)
Fora Financial Phone Number and Address
If you’re having issues with Fora Financial and need to contact the company, here’s how you can get ahold of someone:
- Phone: 877-419-3568
- Email: info@forafinancial.com
- Address (New York): 1385 Broadway, 15th Floor, New York, NY 10018
- Address (Miami): 333 SE Second Ave, Suite 3420, Miami, FL 33131
How Can a Debt Settlement Attorney Help?
If you’ve been contacted by Fora Financial or any other lender, a debt relief attorney can help you navigate these communications, guide you through the legal process, and protect your business. Merchant cash advance attorneys have plenty of experience dealing with the types of loans Fora Financial offers and can represent you throughout the process.
Tayne Law Group has experienced debt relief attorneys who may be able to help. To set up a free phone consultation with one of our attorneys, contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share your information, and all conversations are confidential.
FAQs
What does Fora Financial do?
Fora Financial offers various types of business financing, including business loans, revenue advances, lines of credit, SBA loans, invoice factoring, and more.
What are the interest rates for Fora Financial?
The interest rates for a business loan from Fora Financial vary depending on the type of loan and your personal credit situation. For non-traditional types of financing like revenue advances, you should expect to pay a higher interest rate than you would on a typical installment loan.
What is a revenue advance?
A revenue advance, similar to a merchant cash advance, is a type of business financing that’s based on your expected revenue. You’ll make frequent loan payments as a percentage of your revenue, along with interest and/or fees.
