Forward Financing Secures $90M Credit Facility
Forward Financing closed on a $90 million credit facility, consisting of a $60 million senior revolving credit facility and a $30 million junior term loan. AloStar Capital Finance (“AloStar”), a division of Cadence Bank, N.A., served as the Agent on the senior facility.
The proceeds will be used to refinance existing debt and will significantly increase Forward Financing’s capacity to fund its small business customers. The facility provides Forward Financing with a substantially increased long-term capital base and a significantly lower cost of funds, allowing the company to accelerate its already impressive growth.
Forward Financing CEO Justin Bakes recently told deBanked that it is a big plus to work with ISOs that are comfortable using technology.
“Ideal partners for us are ones that are technology driven, focused on the customer experience and very process-oriented – with a focus on doing right by the customer.”
“We have technology API integrations with some of the larger players, so we’re able to communicate in real time with them. And because they have sophisticated systems, we’re able to coordinate balances for merchants and renewals.”
Bakes said the company employs over 20 engineers at their Boston headquarters, plus some that work remotely. Like many other funders, Bakes said that Forward Financing invests in technology and applications so that their strategic partners have a streamlined process.
The company gets its business exclusively from referral partners and provides MCA financing between $5,000 and $300,000. Forward Financing appeared on Inc. Magazine’s Inc. 500 list of the fastest growing American private companies in 2017 and 2018. According the 2018 list, the company earned $42.1 million in 2017. Bakes said that their revenue has grown by at least 50% each year for the past three years and he anticipates the same percentage growth for 2019.