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Small Business Loans through "ForwardLine Financial" using Credit Card Sales - too good to be true?
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4/20/2010 1:51 PM (PST)

Anyone familiar with ForwardLine Financial? They purport to lend monies on a 14.99% fixed interest for life of loan, without other charges. Loans are based on the amount of average monthly credit card transactions made to your company. For example, if you accept $5K each month, you could borrow up to $6K; if you charge $20K per month, you could borrow up to $30K, etc. (You can borrow up to 150 times the amount you generally charge through.)Payments are taken directly from your processing at 14.99% by credit card only. (You can elect to pay off your loan at any time, but must be paid in full if submitting a check, etc. You cannot send in checks for payments.) You establish how long you want to take to repay your loan. For example, if you borrowed $9K and wanted to have it paid off in one year, you would pay back $11,940.00 @ $995.00 per month. So, you would definitely have to have enough in monthly credit card sales to meet your monthly payment; otherwise, the loan is simply extended with no other charges assessed. This is how it was explained to me...Anyone have any other info, or know of this company, or how this actually works. Sounds like it would be a good deal, maybe not as good as bank rates, but certainly better than the average credit card cash advance loan! Help! Thanks!

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4/20/2010 2:52 PM (PST)

This is a form of accounts receivable factoring, which uses credit card receivables. With the banking/lending crackdown, there are very few options for small business loans and factoring of all types of receivables has become more prominent. I would imagine that it's a tricky proposition to synchronize your credit card processing with cash advances from a factoring company, but there are people out there doing it.

ForwardLine has been around for several years, which is good, especially considering the difficult market conditions in lending. They reflect only one complaint in the past three years. Their BBB report is viewable from the link above. They show an A+ rating.

Do a Google search for credit card factoring and you will find some useful information and hopefully, tips on avoiding pitfalls.

Good luck, and let us know how it works out.

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4/20/2010 3:23 PM (PST)

Thanks for your help....still not sure if I am comfortable with this method of "lending"....have been in business for 17 years, so not planning on leaving any time soon! Just need to make some improvements, and saw this as an alternative. I did do some other research on ccfactoring, just not sure I want to proceed...so many scammers out there! Will continue research, and any other help or responses on this topic will be most appreciated....Thanks!!!!

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5/10/2010 2:12 PM (PST)

I got a business cash advance loan through EXS Credit Card Processing who i left a good review on earlier this year on this site. They set me up with a free credit card terminal (upgrade from my old one) and got me a cash advance to help my restaurant expand. Their website is eee.EXSCreditCardProcessing.com

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5/13/2010 7:27 PM (PST)

Hear is an update on the company who provided me with the business cash advance loan. It is Cash Advance Exchange and their website is www.CashAdvanceExchange.com. They set my up with a new credit card terminal and merchant account with EXS Credit Card Processing. Hope this helps!

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5/27/2010 8:47 AM (PST)

I would make sure you read the fine print on the contract. I made the mistake of co-signing for my dad's business on a loan from Forwardline. He has since defaulted on the loan, leaving me to pay it($42,000. balance). Ok, that was my fault for being stupid. I am paying back the loan now to save my credit. I should have read the contract better and I never would have signed it. After the contract period is up, if the total loan amount was not paid back, they add 2% penalty to the monthly balance of the loan. On $42k it is $840. added back to the loan balance.
In addition, THEY decide how much your weekly payment will be. Mine is $800. per week. I guess you live and learn. I would enter this with caution.

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8/17/2010 3:20 PM (PST)

Kevin- I’m sorry to hear about your situation. It sounds like you were co-signing as a Personal Guarantor on your father’s financing. We have very thorough underwriting standards at ForwardLine and try to only finance businesses that we feel can benefit and grow from the use of new funds. It is not in anyone’s best interest for us to finance a business that we don’t believe will continue to remain profitable, especially in this economy. Unfortunately, despite our best efforts, we still occasionally fund merchants that suffer declining sales and have trouble re-paying the financing. In these rare instances, we do our best to work with the merchants to develop a repayment structure that is reasonable and fair for both parties. I welcome you to please contact me to discuss the specifics of your current repayment situation. If something has changed we might very well be able to work with you on adjusting your weekly payment amount. Kind regards, Thomas Bonneau Marketing Director ForwardLine Financial, LLC

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