Forward Financing Closes $170M Asset-Backed Securitization

Forward Financing completed its first $170 million asset-backed securitization in December 2025, expanding total debt facilities to $620 million. The Boston-based fintech lender, which has provided over $4.3 billion to 85,000 small businesses since 2012, saw the transaction oversubscribed by 2x with Guggenheim Securities as lead advisor.

Forward Financing Closes $170M Asset-Backed Securitization

Forward Financing, a Boston-based small business lender, has completed its inaugural asset-backed securitization totaling $170 million. The transaction brings the company's total debt capacity to $620 million and marks a significant evolution in how the fintech funds its lending operations.

The facility includes a three-year revolving period with three classes of notes and was oversubscribed by more than 2x, signaling strong investor confidence in Forward's portfolio quality. Guggenheim Securities led the transaction as sole structuring advisor and placement agent. Since its founding in 2012, Forward has provided over $4.3 billion in capital to nearly 85,000 small businesses nationwide.

Implications for small business capital access

Securitization represents a maturation milestone for alternative lenders. By packaging loans into securities sold to institutional investors, Forward gains access to cheaper, more stable capital compared to traditional warehouse lines or direct lending. This reduces funding costs, improves margins, and provides runway for scaling operations—critical advantages in a competitive small business lending market.

The 2x oversubscription suggests institutional appetite for small business loan exposure remains robust despite economic uncertainty. For the broader alternative finance sector, successful securitizations validate business models and open doors for similar players to tap capital markets. However, this also raises scrutiny: regulators and investors will closely monitor performance data, default rates, and underwriting standards as these portfolios mature.

For small businesses, increased institutional funding could translate to more available capital and potentially better pricing as competition intensifies among lenders.

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