Term financing has obtained $525 million in new financing through a variable financing facility and an asset-backed securitization, expanding its capital base to support continued loan growth and increasing its total committed financing capacity to nearly $700 million.
The Boston-based fintech company completed a $350 million variable financing facility (VFN) along with a $175 million asset-backed securitization (ABS). The transactions refinance an existing warehouse while providing additional liquidity to fund originations for small businesses throughout the United States.
The financing strengthens Forward Financing’s balance sheet and advances its long-term strategy of diversifying funding sources as demand for loans continues to grow. Combined with the company’s inaugural ABS transaction completed in December 2025, the new facilities provide greater financial flexibility and a scalable financing platform to support future expansion.
The VFN service includes a three-year renewable term and can be increased up to $500 million over time. It is syndicated among four institutional investors, including private credit funds and insurance companies. The $175 million securitization, the company’s second qualified ABS issuance, also has a three-year rolling term and consists of three classes of notes.
Investor demand exceeded expectations. According to the company, the ABS offering was more than four times oversubscribed before increasing in size and eventually attracting participation from 11 institutional investors. Guggenheim Securities acted as sole structuring advisor, sole accounting manager and sole placement agent for both financings.
Jason Mullinspresident and CEO of Forward Financing, said the transactions represent an important milestone in the company’s growth strategy. He noted that Forward has provided more than $5 billion in capital to nearly 100,000 small businesses since its founding and that the expanded financing capacity will allow the company to continue to quickly provide financing to entrepreneurs seeking working capital.
CFO Christopher Chiou said completing both VFN’s inaugural facility and the company’s second securitization demonstrates institutional investors’ confidence in the performance of Forward Financing’s portfolio and business model. He said the expanded financing platform diversifies the company’s capital sources while providing the flexibility needed to support continued growth.
The financing reflects broader trends within specialty finance, where non-bank lenders increasingly access institutional capital markets to finance loan originations. By combining warehouse financing with securitization, Forward Financing is expanding its investor base while reducing reliance on a single source of financing, an approach that can improve capital efficiency and support higher loan volumes over time.
Founded in 2012, Forward Financing uses proprietary underwriting technology and digital lending tools to provide quick access to capital for small businesses that may not qualify for traditional bank financing or require financing on accelerated terms. The company says its platform can provide instant approval decisions and deliver same-day financing, supported by customer service teams in the United States, Canada and the Dominican Republic.
Since its launch, Forward Financing has provided approximately $5.2 billion in financing to more than 97,000 small businesses nationwide. The latest financing positions the company to continue expanding its lending platform while meeting the growing demand for flexible capital from small business owners across the country.