Forward Financing Reviews: 6 Things the Ratings Do Not Tell You

Forward Financing has been around since 2012. It claims to have provided more than $5 billion to small businesses. It is accredited with the Better Business Bureau with an A+ rating, answers nearly every complaint, and faces no known action by the Federal Trade Commission, Consumer Financial Protection Bureau, or any state attorney general. Customer reviews for it at the BBB are oddly scathing, however: 2.33 of 5. What happened? It is legit, but customer ratings miss how the contract works.

1. Different ratings, different things

The BBB does not consider online reviews in its grading. Instead, they based it on the company’s complaint history, how long they have been in business, how transparent they are in disclosing information, and license issues. Different websites can look at the same company in different ways. TrustPilot gave Forward Financing 4.6 across 4,031 reviews, with the company inviting customers to leave a review on the site. A business can have a very high rating while receiving poor customer reviews (thus, the higher BBB ratings and lower customer ratings are not contradictory, they are referring to different things).

2. Payments follow revenue, not profit

The payments follow revenue, not profit, according to Forward Financing’s answer to a merchant complaint. Its reply states that you agree to pay 18 percent of revenues, regardless of your profit. You might experience rising costs that gobble up more of your revenue, and the payment does not move. You can lower your payments if your revenues fall, but only if you give Forward Financing notice, as the agreement requires. That requires you to know about it, of course.

3. You cannot price it first

Forward Financing apparently does not publish an estimated range of either a factor rate or APR. The size of funding offered varies widely ($5,000 to $500,000), with contract lengths of typically 3 months to 18 months, with payment withdrawal either daily or weekly. That’s a wide range, but what percentage of your sales does this cost you, ultimately? In New York, by law, you must receive an estimate of an APR for a specific offer (rather than a general quote) from anyone who provides sales-based financing up to $2.5 million.

The contract’s language is nothing like the standard format or terminology of a loan. The amount you receive is your “Purchase Price,” and the amount you owe is the “Amount Sold.” Nothing in the contract is phrased in terms of interest rates, since in its framing Forward Financing isn’t making a loan.

A federal court opinion from 2018 can show how these deals work. Forward paid $135,000 and claimed the right to $194,400 from a supermarket. That is 1.44 times. A February 2026 complainant borrowed $35,000, was billed for $49,000, or 1.40. A March 2026 review said the writer borrowed $30,000 and netted just over $21,000 after fees. The balance owed: just over $43,000. The last one is the number to watch. Payback calculated on gross amount lent, not what the borrower received.

4. The broker’s word is not binding

The contract says you did not rely on representations by the broker and can only rely on the Forward Financing contract. The terms of your agreement do not include whatever a broker told you. If you want a promise, try to get it from Forward Financing in writing before signing on any dotted line.

5. Disputes go to arbitration

The contract requires private arbitration of disputes. A docket online only knows what happens in court. The New York court records show two cases, both seeking to confirm arbitration awards, not filing a lawsuit against a debtor. All they show is the last stage, where the company asks the court to record that they won an arbitration that is otherwise unknown to the public. What happened before was private.

A search found no evidence of Forward Financing using a confession of judgment. When the contract requires arbitration, it likely is not needed. The one court opinion that I found also named a principal of the business individually for failing to indemnify Forward Financing. So a personal guarantee raises the risk in a real way.

6. The lawsuits now run the other way

In the past, Forward Financing sued merchants who did not pay. In 2016 it filed 33 lawsuits. In 2017 it filed 37. In 2018 it filed 10. Then Forward Financing slowed down, effectively stopped filing lawsuits. Now, it is the merchants suing Forward Financing. Of 113 federal dockets, 29 were lawsuits filed in bankruptcy court. Forward Financing had to show up in Bankruptcy court to defend itself. In 2024 there were 9 of those filings. In 2025 there were 11. So far in 2026 there have been 6. That is a steady stream of merchants ending up in bankruptcy court.

Complaints online go into some detail. In one, someone called seven times in three days to get a payoff letter. The consumers report UCC liens filed against them. They are asked about withdrawals from their bank account. Forward Financing confirms that it uses Plaid software. A December 2025 reviewer reports borrowing more means paying a fee on money previously borrowed, and then the new loan. Some report that they struggle to reach anyone with authority to address the problems.

Check Your Paperwork

You can often negotiate balances down. Arbitration changes who decides the outcome, but does not alter your ability to argue for a lower payment.

If you are already struggling with repayment, remember to check your paperwork to confirm what the contract said, not what anyone else promised. First, check for an arbitration clause. Secondly, look for your signature on a personal guarantee. Third, check the percentage of revenue. Finally, run the math. How does the “purchase price” compare to the amount that cleared your bank account? Ask for a payoff letter sooner than later. Some people reported trouble getting one.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.