Forward Financing Gains $450 Million Credit Facility for Revenue-Based Financing

Forward Financing has increased its existing $250 million credit facility to $450 million to support continued growth of its revenue-based financing for small businesses across the United States.

“This significant expansion of our credit facility is an exciting step towards continued growth and our ability to fund more small businesses across the country,” Christopher Chiou, chief financial officer at Forward Financing, said in a Thursday (Sept. 19) press release. “It speaks to our strong financial performance and will help secure our position as a leader in the revenue-based financing industry.”

Forward plans to use the additional capital to continue funding volume growth and meet the working capital needs of small businesses, according to the release.

The company focuses on U.S. small businesses that have been underserved by traditional financing options, the release said. Over 27% of its customers operate in low-to-moderate income (LMI) areas, and many are unable to obtain traditional financing.

Since its launch in 2012, Forward has provided over $3 billion in funding to nearly 63,000 customers, per the release.

“By simplifying requirements, streamlining the process and using advanced proprietary technology, Forward is often able to deliver approvals within hours and funds that same day — giving more businesses the financial opportunity they need to thrive,” the press release said. “Plus, with their dedicated teams and award-winning service, customers get personalized support when they need it most.”

Only 39% of small and medium-sized businesses (SMBs) on Main Street — firms generating less than $10 million in annual revenue and having physical locations from which they conduct their business within core commercial districts of cities or towns — have access to financing sources such as business credit cards and working capital loans, PYMNTS reported in October 2023.

Responding to the challenges small businesses face in terms of working capital, new products and financial services have emerged to offer more innovative and flexible solutions designed to help insulate businesses from economic fluctuations, PYMNTS reported in July.

These marketplace innovations include products such as virtual and commercial cards, supply chain finance, invoice finance and asset-based lending. These working capital solutions provide businesses with quicker access to funds, improved cash flow management and the ability to invest in growth opportunities without the burden of traditional debt.

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