A FinTech specializing in delivering capital to small businesses has raised new funding of its own.
About Forward Financing and Its Latest Funding:
This week, Forward Financing announced that it had secured $525 million in new financing. That sum includes a $350 million variable funding note facility as well as a $175 million asset-backed securitization. The firm adds that the VFN component can be expanded to $500 million. Prior to this latest funding, Forward secured credit facilities totaling $540 million, including a $200 million facility in 2024.
Forward Financing is a Boston-based FinTech that offers flexible funding solutions to small businesses. Specifically, the company offers two main funding products: revenue-based financing and loans. With the former, payments are made in the form of a percentage of revenue. Meanwhile, the platform’s business loans offer fixed payment terms and fixed interest. Both products provide between $5,000 and $500,000 in funding and are paid back via auto-debited payments over 3 to 18 months (depending on selected terms).
Business owners can apply for funding online and get a “fast decision.” If approved, funds are available as soon as the same day. Forward notes that it utilizes advanced proprietary custom risk and underwriting models, which can be beneficial to business who many not have been able to obtain funding through more traditional means.
Currently, Forward loans are only available in Alabama, Hawaii, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, New Hampshire, South Carolina, Texas, Utah, Wisconsin, and Wyoming.
What They’re Saying:
Announcing this latest funding, Forward’s President and CEO Jason Mullins said, “This $525 million financing marks another significant milestone for Forward. Having provided more than $5 billion of capital to nearly 100,000 small businesses since inception, this transaction expands our funding capacity and strengthens our ability to deliver fast, reliable financing to the entrepreneurs and business owners we serve.”
Additionally, the company’s CFO Christopher Chiou stated, “The successful execution of both our inaugural VFN facility and our second rated ABS reflects the confidence institutional investors have in the quality of our portfolio and our business model. These transactions diversify our funding sources, strengthen our balance sheet, and provide a scalable capital foundation to support our continued growth.”
My Thoughts:
While I can’t speak to Forward’s pricing or experience, it’s always great to have more small business capital options. Therefore, I’m glad to see the company reaching these facilities agreements, which should help them to deliver more loans to more businesses.
