Forward Financing adds $525mn in funding capacity for small-business loans
The capital provider said a new note facility and securitization lift committed funding capacity to nearly $700mn.
By Rafael Ortiz · Fintech Correspondent
· 3 min read
Forward Financing has secured $525 million of new financing, lifting its total committed funding capacity to nearly $700 million, the company said in a Thursday, July 16, press release. The additional capital is intended to support funding for small businesses across the United States and refinance the company’s existing warehouse facility.
The package comprises a $350 million variable funding note facility and a $175 million asset-backed securitization, according to Forward Financing. Together with the company’s first asset-backed securitization completed in December, the transactions expand the capital base available to the Boston-based financing provider.
A variable funding note facility typically gives a borrower access to committed capital that can be drawn, repaid and redrawn within agreed limits, making it suited to businesses that originate financing assets over time. An asset-backed securitization raises money by issuing securities tied to a pool of underlying receivables or other financial assets, shifting funding from a balance-sheet or warehouse model toward capital markets investors.
Forward Financing said the transactions replace its prior warehouse facility and broaden its funding structure. The company provides capital to small businesses through a digital process that can deliver instant approvals and same-day funding, according to the release.
Since its founding in 2012, Forward Financing has supplied $5.2 billion to more than 97,000 businesses, the company said. Its model serves small-business owners seeking fast access to working capital outside traditional bank-lending channels.
Jason Mullins, Forward Financing’s president and chief executive, said in the release that the transaction “expands our funding capacity and strengthens our ability to deliver fast, reliable financing to the entrepreneurs and business owners we serve.”
Chief Financial Officer Christopher Chiou said the financing reflected institutional investors’ confidence in Forward Financing’s portfolio and operating model. “These transactions diversify our funding sources, strengthen our balance sheet and provide a scalable capital foundation to support our continued growth,” Chiou said.
The latest financing follows several capital-markets steps by the company. Forward Financing announced its inaugural $170 million asset-backed securitization in December. In September 2024, it disclosed that a $250 million credit facility had been increased to $450 million.
The deal arrives as small businesses continue to face uneven operating conditions. PYMNTS reported in June that companies in expanding service categories may need tools for recurring payments, card acceptance, invoicing, financing and visibility into cash flow.
A PYMNTS Intelligence report, “Why Main Street Is Splitting: The Data Behind Small Business Winners and Losers,” found that Main Street businesses, which had traditionally grown faster than the broader economy, lagged overall U.S. business growth over the 12 months through September 2025.
Other financial services companies have also targeted small-business support. Visa said in February that it launched Visa & Main, a platform designed to help small-business owners access capital, reach customers and use modern business tools. Visa said the platform would offer resources, programming and local activations.
This story draws on original reporting from PYMNTS.
