Fora Financial Secures $53 Million Credit FacilityMay 19, 2016 | By: Srividya Kalyanaraman
New York-based small business lender Fora Financial closed a $52.5 million senior revolving credit facility with a group of financial institutions led by AloStar Capital Finance that includes BankUnited, Customer’s Bank and First Tennessee Bank.
This credit facility will take care of Fora’s financing for the next three years and allow for expansion of the facility to $75 million, tripling the lender’s current borrowing capacity. The eight year old company has financed $450 million to 9,500 businesses to date.
“This facility will provide us with flexible, low-cost financing that will enable us to continue on our growth trajectory while offering even more attractive and innovative solutions to thousands of small businesses in need of capital,” said Andrew Gutman, Chief Financial Officer at Fora Financial.
In October of last year, founders Jared Feldman and Dan Smith sold a major stake to PE firm Palladium Equity Partners LLC which helped capitalize their balance sheet. The Palladium deal marked a milestone in the development of Fora Financial, a company with roots that date back to when Smith and Feldman met while studying business management at Indiana University.Last modified: May 19, 2016
As editor, Srividya drives daily news coverage and editorial strategy. Previously, her work has appeared in publications like Money magazine, Advertising Age, FirstPost and The Economic Times. She has also dabbled in business intelligence solutions, and holds a Masters degree in Business and Economic Reporting from NYU. Write to her at email@example.com