Forward Financing review: a revenue-based advance with a written adjustment promise

Forward Financing scores 2.9 out of 5 on our funder method. It is a Boston funder that has operated for over a decade and says it has provided more than $5.7 billion to over 100,000 small businesses [8]. It is not a broker; it funds deals itself, though many reach it through outside sales offices and brokers, which its privacy policy names as a source of applicant data [3].

It sells two things. The main one is revenue-based financing: Forward pays you a lump sum now and buys a set amount of your future revenue in return. That is the same structure as a merchant cash advance, so it is not a loan; its cost is set by a factor rate. The contract even uses the words "purchase price" for the money you get and "amount sold" for what you repay [2]. The second product is a business loan with fixed installments, which is only offered in 14 states [1].

Three things decide whether it fits. First, the price is a black box until the offer arrives. Second, the payment adjustment promise on its FAQ page is better than many funders put in writing [2]. Third, the review record is hard to read: almost every recent Trustpilot review carries the Verified label, while BBB reviewers, who were not invited, average under three stars [5][7].

Forward lays out the money flow in plain terms but leaves the numbers blank. You receive the upfront capital minus a processing fee, and you repay a fixed dollar amount of future revenue through weekly or daily debits [2]. The processing fee depends on the amount, and the amount you repay depends on your financial history, industry and time in business [2].

Because no range is published, we cannot price a typical Forward deal. What we can show is how the math works once you have an offer. Say an offer gives you $20,000 and asks you to repay $26,000 over about six months of business-day debits. That is a factor of 1.3 and $6,000 in cost. Our estimate of the APR on that schedule is about 109%, because the money is repaid so fast. These are made-up offer numbers to show the method, not Forward's prices. Put your real offer into the MCA calculator to see your own figure.

Speed is the selling point. Forward says most applicants hear back within hours, and an approval before 3:00 p.m. ET can arrive by wire the same day, though it notes wire fees may apply; otherwise funds go by ACH the next business day [2]. Payments start within a week of funding [1].

Applying takes most people under 10 minutes, Forward says [2]. After you send the basics, it asks for a driver's license, a voided check and bank verification, and rarely a tax return or proof of ownership [1]. If you accept, a funding call walks through the contract before the money moves [1].

The clause that matters most in a revenue-based deal is the one that lets payments follow your sales. Forward's FAQ states that when revenue drops and the customer notifies them as the agreement requires, they will adjust payments to align with revenue, and the customer stays in good standing with Experian Business Credit [2]. Forward reports to that bureau monthly and reports only business credit, not personal credit [2].

Early payoff is allowed at any time with no extra charge [2]. Since the amount sold is fixed, paying early saves you nothing unless Forward grants a discount. It says it "may" offer one in some cases, with restrictions, and points you to your agreement or your Account Executive for the details [2]. Ask for any discount in writing before you sign, not after.

Renewals open up once you have paid about half of the original balance and your payments are current [2]. A renewal is a new purchase of your revenue with its own cost, so treat the offer like a first one.

BBB lists 14 complaints against Forward Financing in the last three years and 3 in the last 12 months [6]. That is a small number for a funder that says it has served over 100,000 businesses [8]. We read the 10 complaints BBB displays. Six were about money leaving the account or a balance after payoff: two $1,800 charges in one week, a $1,400 debit against a $500 payment the owner said was agreed, payments that ran ahead of revenue, unexpected debit changes, a missing payoff letter and a balance after a zero-balance letter [6].

In one of those cases Forward's reply said it cut the payments to 24% of the contract amount, which shows the adjustment process does run, even if the owner was not satisfied [6]. One complaint about a stolen identity ended with Forward closing the account and removing the lien [6]. Most others are marked answered, not resolved.

• Before signing, write down the exact debit amount and frequency and match it to the contract's front page [2].
• If sales fall, email the Account Servicing team at once with your recent bank statements and ask for the adjusted amount in writing [2].
• Do not stop payments through your bank without a written plan; several complainants described lien or arbitration threats in payment disputes [6].
• After payoff, check your account for two weeks and confirm the UCC lien is released.

Forward shows 4,159 Trustpilot reviews and a 4.6 score, and the page says the company invites customers to review [5]. We read the three most recent pages plus the featured reviews: 64 reviews in all. Sixty-two carried the Verified label, one was labeled Unprompted and one had no label [5]. With 97% Verified, the headline score mostly reflects customers Forward asked, right after funding.

The BBB reviews come closer to an unprompted view. Of the 10 shown, seven were five stars and three were one star; the one-star posts called the pricing heavy and said a rep asked for online banking login details, which Forward answered by saying it verifies accounts through Plaid [7].

Support is by phone at 888-244-9099, Monday to Friday, 9 a.m. to 6 p.m. ET, and existing customers get a self-serve portal and an assigned Account Executive [2][8]. The Account Servicing team, which handles payment changes, has its own line at 888-954-4377 during the same hours [2].

On your data, Forward's privacy policy lists service providers, collection agencies, fraud screening firms and advertisers as recipients, plus "other potential sources of funding you identify to us" [3]. It does not describe passing your file to a network of other funders, which is the main reason it scores well on lead handling.

Two facts matter for New Jersey owners. Forward's fixed-installment loan is offered only in Alabama, Hawaii, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, New Hampshire, South Carolina, Texas, Utah, Wisconsin and Wyoming [1]. So a New Jersey offer, if one comes, would be the revenue-based product; confirm that on the call.

Second, Forward lists ten states whose laws require it to hand you a state disclosure form with the contract, and New Jersey is not among them [4]. Without that form you will not get a state-format estimated APR, so ask for the total repaid in dollars and work out the APR yourself. Our page on New Jersey MCA law covers what rules do apply here.

• Headway Capital: a line of credit you can pay down early with no fee.
• Credibly and Fora Financial: two more revenue-based funders to price against a Forward offer.
• OnDeck: an online lender that publishes its average APRs, so you can compare before you apply.
• Best merchant cash advance companies: our scored list of funders that buy future receivables.
• Best business lines of credit: usually cheaper than any advance if you qualify.

If you are comparing an advance against other options, Batch Capital, our funding team, can line up offers side by side in dollars. Our guide to early payoff on an MCA explains what to ask for before you sign.