Fora Financial Secures Expanded Senior Credit Facility
New facility has the potential to nearly triple the Company’s current borrowing capacity.
Fora Financial, a provider of flexible working capital solutions to small businesses, announced today the closing of a $52.5 million senior revolving credit facility. A group of four financial institutions will participate in the new facility, with AloStar Capital Finance, a specialty provider of asset-based loans to the middle market, acting as sole lead arranger and the administrative agent. The deal agreement provides Fora Financial with financing over the next three years and also allows for the expansion of the facility size to $75 million, nearly tripling the company’s current borrowing capacity.
The participating financial institutions include two members of Fora Financial’s current senior lender group, BankUnited and Customer’s Bank, as well as new participant First Tennessee Bank. All four banks have significant experience offering credit to the merchant finance industry, providing Fora Financial with partners who uniquely understand the company’s business model and growth strategy.
“This is a landmark achievement for Fora Financial, and we are extremely excited to partner with AloStar and the bank group in the expansion of our senior credit facility,” says Andrew Gutman, Chief Financial Officer at Fora Financial. “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.”
To date, Fora Financial has provided over $450 million of working capital to over 9,500 customers nationwide, spanning a wide range of industries. In October 2015, Fora Financial entered into an investment partnership with an affiliate of Palladium Equity Partners, LLC, adding significant market expertise and capitalizing the company’s balance sheet for future growth. Over the past five years, the Company has grown annual originations by over 50 percent.
“It is always exciting to support a company that shares our interest in helping American companies create their own success stories, and Fora Financial is one of those,” said Andy McGhee, CEO and president of AloStar. “We were pleased to work with our partners to provide a customized solution for Fora Financial.”
About Fora Financial
Fora Financial offers flexible financing solutions to small businesses in need of additional working capital to sustain or grow their enterprise. The company places a high value on transparency and provides businesses with fast, personalized small business loans and merchant cash advances, utilizing its state-of-the-art technology and unwavering customer service. Founded in June 2008, Fora Financial has over 120 employees in its New York City office locations.
About AloStar Capital Finance
AloStar Capital Finance provides solutions for clients, prospective clients and referral sources who have capital requirements that range between $5 million and $20 million. These solutions are funded through AloStar’s lending platforms, AloStar Business Credit, AloStar Lender Finance and AloStar Real Estate Finance. AloStar Capital Finance is the lending arm of AloStar Bank of Commerce, Member FDIC. For more information, visit http://www.AloStarBank.com.
Read the full press release on PRWeb.com here.