Charlotte-based fintech startup Foro announced yesterday its digital commercial lending platform is available nationwide after raising $8 million in Series A funding.
The funding round was led by TTV Capital, with participation from Fin Capital, Correlation Ventures and AME Cloud Ventures, among others, the startup said.
Foro was founded in 2019 and had been in stealth mode until its widespread launch. The fintech company aims to make commercial lending more equitable for growing businesses. Foro provides businesses with access to capital by connecting them with a financial institution that meets their specific needs. The fintech achieves that by using modernized data and technology to make the way businesses explore, evaluate and choose a commercial loan less time-consuming.
Foro is backed by several investors, including local leaders such as Hugh McColl Jr., former CEO and chairman of Bank of America Corp. (NYSE: BAC).
“The goal of increasing access to capital, particularly for business owners in underserved communities, is what sets Foro apart,” McColl said. "They’ve built a platform that streamlines the loan process and enhances lending strategies for financial institutions, and provides all business owners with the opportunities, tools and confidence they need to grow their business.”
The startup's national launch comes when business owners and lenders seek to maintain the flow of commercial loans despite economic concerns, Foro said.
Identifying commercial lending partners to fit small to mid-sized businesses' capital needs can be strenuous. Foro says the process of finding a lender is time-consuming and driven by outdated technology. For example, the initial discovery process can take up to 30 days. If an application is approved, it can take another 75 to 100 days for the funds to hit their accounts.
Foro said it aims to cut the initial discovery period from 30 days to seven by utilizing three steps.
Businesses in need of capital would first fill out a profile by answering specific questions on the Foro website. After completing the profile, the platform connects business owners with various lenders, including banks and credit unions, that meets their tailored preferences. In about 48 hours, business owners are provided a list of lenders interested in fulfilling their needs.
Companies are guided by Foro's network of financial experts throughout the entire process to help them identify the right lender.
Dave Godsman, CEO of Foro, said capital is always available even amid economic uncertainty, however, it can become challenging to secure.
"Lenders become more selective with their loans, and business owners become more conservative, seeking guidance on who to approach and how to best tell their story in order to secure the funding they need," Godsman said. “By using Foro, businesses can secure capital more efficiently and with more support than the current model, while lenders can access a pre-screened pool of businesses that already fit their lending parameters."
He added, "The fact that we’re emerging now, in an unpredictable market, is not a coincidence. Our platform delivers a more streamlined and objective process for commercial lending at a time when it’s needed the most.”
