PROS / This lender offers a low-rate guarantee.
CONS / You must be in business for at least a year to qualify for financing.
VERDICT / ForwardLine is a good option for small, established business owners desiring low rates and flexible repayment options.
ForwardLine extends merchant and business cash advances between $5,000 and $2 million to small businesses in most of the United States. Financing through this lender, however, is unavailable to companies in Nebraska, North Dakota, Rhode Island, South Dakota, Vermont and the District of Columbia. It offers some of the lowest repayment costs compared to other merchant cash advance services, has flexible repayment options and offers a low-rate guarantee.
ForwardLine offers one of the lowest repayment costs in our review at 8.99 percent. The high end of its repayment cost range is 21 percent. If you receive a written offer lower than ForwardLine, the company offers a low-rate guarantee that pays you $100.
Also, if you repay your financing ahead of schedule, you could be eligible for a discount on the repayment cost. You don't pay an origination or application fee, and there are no repayment minimums you need to meet in order to be considered current on your advance. You may have to provide a personal guarantee.
To be eligible to receive merchant loans, you must be in business for at least a year, whereas the average requirement is about four months in business, compared to other merchant cash advance services we evaluated. You must also make at least $150,000 in annual sales, which is on a par with other merchant cash advance services.
Along with your application, the lender requests the last four months of your credit card processing statements so it can evaluate your cash flow. When we applied with this lender, it did not provide a quote over the phone listing the amount of financing we qualified for, the total repayment cost, or daily repayment amount or percentage. However, ForwardLine's eligibility requirements are posted on its website.
You can start repaying your alternative business funding advance as a percentage of your daily credit card sales. ForwardLine is one of two lenders that did not disclose the range of hold-back rates it withholds from your daily sales.
If it isn't compatible with your existing credit card processor, ForwardLine works with you to set up a merchant lockbox that enables you to repay your financing as a percentage of your credit card sales without switching processors. It also has a business cash advance option that allows you to repay your financing as a set daily amount that is withdrawn from your business bank account.
There is no fixed term length for working capital for small businesses and no penalty if it takes longer than anticipated to repay the advance. There is a set term length if you choose the business cash advance option, with terms between six and 15 months available. If you're able to pay off your merchant loan quickly, you could receive a rebate.
ForwardLine offers business cash advances up to $2 million for eligible small businesses, and allows you to repay the loan with daily payments from your credit and debit card sales. The lender offers $100 as a low-rate guarantee if you get a lower written offer from another capital lender. Its repayment costs are lower than most, and it doesn't charge application and origination fees, though it may require you to provide a personal guarantee for the financing you receive. However, if you have a new business that hasn't been in operation for at least a year, you won't be eligible for a loan from ForwardLine at all.