Fora Financial, a provider of working capital solutions to small businesses, closed a $52.5 million senior revolving credit facility.
A group of four financial institutions will participate in the new facility, with AloStar Capital Finance 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, and 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,” said Andrew Gutman, CFO 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 more than 9,500 customers nationwide, spanning a wide range of industries.