Fora Financial Announces $126.9 Million Securitization

Company closes third asset-backed securitization transaction, enabling continued growth in financing the SMB community

NEW YORK, Sept. 12, 2024 /PRNewswire/ -- Fora Financial, a leading provider of financing to small and medium-sized businesses nationwide, announced today the closing of a $126.9 million asset-backed securitization (ABS). The transaction, which is collateralized by a pool of small-business financing receivables, is Fora Financial's third ABS transaction since 2019, bringing the total securitization proceeds raised by the company to ~ $287 million. This is also the company's largest ABS transaction, marking a significant increase over the prior $90 million deal completed in November 2021.

"We are excited to have closed our third securitization transaction on the heels of what will be a record origination year for the company," said Andrew Gutman, COO of Fora Financial. "The high level of interest shown by both previous and new investors reaffirms our position as a leading originator in the SMB space. With this new ABS facility, Fora Financial has now exceeded $250 million in diversified senior financing capacity while boosting overall liquidity to support the company's near-term growth targets."

The transaction was comprised of 26 orders from 15 unique investors, reflected in more than 2.2x oversubscription across all note classes. Truist Securities served as Sole Structuring Advisor, Book-Running Manager and Initial Purchaser for the transaction, which has a two-year revolving period and can be upsized to a maximum of $500 million.

About Fora Financial
Founded in 2008, Fora Financial has distributed more than $4.0 billion of financing to over 55,000 businesses. It offers these customers fast, personalized business loans and revenue advances, supported by state-of-the-art technology, one-on-one customer service, and total transactional transparency. Fora Financial employs more than 140 people at its New York headquarters and Miami location.

SOURCE Fora Financial