Fora Financial Secures $200 Million Credit Facility to Enhance Financing for Small and Medium-Sized Businesses Nationwide

Fora Financial, a leading provider of flexible financing to small and medium-sized businesses nationwide, has recently secured a significant new credit facility to enhance its capital base and expand its ability to provide timely access to capital for the SMB community.

The company announced the closing of a two-year, $200 million revolving credit facility, with ATLAS SP Partners serving as the senior lender and TPG Angelo Gordon as the participating lender. This new facility, combined with Fora Financial’s third securitization that closed in September, provides the company with over $325 million of senior financing capacity.

Andrew Gutman, Chief Operating Officer at Fora Financial, highlighted the importance of this new financing arrangement, stating that it represents a crucial milestone for the company in its mission to be the leading provider of flexible financing for small and medium-sized businesses. Over the past two years, Fora Financial has focused on developing several key products, and this capital will help the company fully realize their potential while continuing to serve as a trusted source of capital for the small business community.

Andrew Koepke, Director at ATLAS, expressed his company’s commitment to delivering meaningful financing solutions for clients, emphasizing their confidence in Fora Financial’s passionate leadership and proven track record. He noted that this partnership underscores ATLAS’s commitment to supporting small and medium-sized business owners everywhere.

This new credit facility follows Fora Financial’s successful third asset-backed securitization (ABS) transaction, which closed in September 2024. The $126.9 million ABS transaction, collateralized by a pool of small-business financing receivables, marked a significant increase over the company’s previous $90 million deal completed in November 2021. This transaction brought the total securitization proceeds raised by Fora Financial to approximately $287 million.

Fora Financial has demonstrated consistent growth and commitment to supporting small businesses. In May 2024, the company reported a 30% increase in Q1 2024 funding volume over Q1 2023, making it the strongest quarter in the firm’s nearly 16-year history. CEO and co-founder Jared Feldman attributed this growth to the company’s expert staff, cutting-edge underwriting technology, and data-driven insights, which provide personalized, one-on-one service to business owners.

As banks implement stricter lending criteria, Fora Financial is seeing increased demand from businesses that may typically work with traditional institutions. This has led to an increase in average funding amounts and terms year-over-year by more than 10%. Founded in 2008, Fora Financial has provided more than $4 billion of financing to over 55,000 small business owners, offering fast, personalized small business loans and revenue advances supported by its proprietary technology platform and one-on-one customer service.

The company’s recent achievements underscore its position as a leading originator in the SMB space. With this new credit facility and expanded senior financing capacity, Fora Financial is well-positioned to continue providing timely access to capital for small and medium-sized businesses nationwide.