Forward Financing, a Boston-based FinTech that supplies capital to small businesses throughout the United States, has closed $525m in fresh financing to bolster its lending capabilities.
The new capital comprises a $350m variable funding note (VFN) facility alongside a $175m asset-backed securitisation (ABS). The deals replace the firm’s current warehouse facility and add extra liquidity to fuel expansion. Combined with the company’s first ABS issuance, which closed in December 2025, the transactions lift Forward’s total committed funding capacity to close to $700m.
The VFN facility carries a three-year revolving period and has the potential to grow to $500m. It was syndicated across four institutional investors, among them insurance companies and private credit funds. The ABS deal, which marks the firm’s second securitisation, features three note classes and also runs on a three-year revolving basis.
Investor appetite for the offering was strong, with demand exceeding supply by more than four times, prompting an upsize and drawing 11 institutional investors. Guggenheim Securities acted as sole structuring advisor, sole book running manager and sole placement agent across both deals.
According to the company, the two transactions broaden its funding platform across a range of facility types and institutional relationships, improving financial flexibility and underpinning its long-term growth plans.
Founded with the goal of unlocking capital for American small businesses, Forward Financing serves companies that either cannot secure traditional bank finance or want a quicker, more flexible option. Its digital platform, powered by proprietary risk and underwriting models, enables instant approvals and same-day delivery of funds. The firm also runs dedicated customer service teams and employs staff across the US, the Dominican Republic and Canada.
Since 2012, the company has deployed $5.2bn in funding to more than 97,000 small businesses.
Forward president and CEO Jason Mullins said, “This $525 million financing marks another significant milestone for Forward. Having provided more than $5 billion of capital to nearly 100,000 small businesses since inception, this transaction expands our funding capacity and strengthens our ability to deliver fast, reliable financing to the entrepreneurs and business owners we serve.”
Forward chief financial officer Christopher Chiou said, “The successful execution of both our inaugural VFN facility and our second rated ABS reflects the confidence institutional investors have in the quality of our portfolio and our business model. These transactions diversify our funding sources, strengthen our balance sheet, and provide a scalable capital foundation to support our continued growth.”
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