Newtek

• Lender Resources 
• Customer Service 
• Loan Amounts and Uses
• Asset-Based Financing

Lender Resources

Newtek is unique in its ability to service other lenders, not just borrowers. Newtek’s business services beyond direct-to-consumer lending illustrate its breadth and depth of financial resources. 

If you’re a lender, you can expand your offering of lending products as a lender service provider (LSP), fully outsource or scale your back-office SBA team to Newtek, or refer loans you can’t or don’t want to take to Newtek while earning a referral bonus with Newtek’s referral program. 

Additionally, Newtek can assist with the following for small lending businesses: 

• Structuring and eligibility
• Credit analysis
• Packaging and closing compliance
• Auditing
• Secondary market management
• Portfolio compliance and servicing 

Customer Service 

Newtek’s forte with customer service is individualized attention to each customer. 

When you finance a loan through Newtek, you will work with the same lending specialist throughout the loan process, so you don’t need to worry about your account being passed from person to person. Your specialist will walk you through each step, including completing all required documentation and forms for you. 

Not only that, but your specialist will help you, as the business owner, pinpoint areas you can maximize your funding while minimizing risk based on where your business can cut costs and grow. If you can benefit from multiple loan solutions, such as a line of credit and a term loan, they will create a loan solution that may consist of both financing products that address both short-term and long-term funding needs. 

Newtek provides customer service via live chat, email, phone, and call-back requests for any customers or prospective customers or business clients. 

Loan Amounts and Uses  

Newtek offers term loans up to $10 million, enough to meet the needs of most small or midsize businesses. Newtek claims it can offer longer repayment terms than a bank or credit union, which allows it to lower payments and provide more attractive rates than banks.

Term loans have limited or no repayment penalties and have payback terms ranging from 7 to 25 years. 

Lines of credit go up to $3 million for shorter-term cash needs. 

Either type of small business loan can be used for the following needs: 

• Expand or acquire a business  
• Increase working capital
• Increase cash flow  
• Open a new location
• Invest in marketing or eCommerce  
• Purchase inventory or equipment  
• Purchase owner-occupied real estate
• Renovate owner-occupied real estate  
• Leasehold improvements  
• Refinance existing business debt   

Asset-Based Financing

Secured by accounts receivable or inventory, Newtek’s asset-based line of credit model is more flexible than a traditional loan, requires less rigorous underwriting compared with conventional financing, has competitive interest rates, and gets you your funds in two weeks or less. 

For accounts receivable, financing, you can expect the following: 

• Lines from $50,000 to $3,000,000
• Get cash now for invoices due 30, 60, or 90 days out
• Up to 80% advance rate
• Renewable 1-year term

For inventory financing, you can expect the following: 

• Lines from $50,000 to $500,000
• Most non-perishable inventory qualifies
• Up to 50% advance rate
• Renewable 1-year term

• Loan Program Unknowns 
• Strict Eligibility Requirements 

Loan Program Unknowns

For any ballpark figures regarding business lending rates, you’ll need to contact the company directly. 

While Newtek claims to have competitive interest rates for lines of credit, it doesn’t provide sample interest rates. While rates are highly individual and based on creditworthiness and other factors, the case studies provided don’t indicate the rates for which the customers qualified. 

In addition to interest rate and fee information, businesses can benefit from having the following information added to the business loans section of Newtek's website:

• Minimum credit score needed to qualify
• Minimum annual or monthly revenue required
• Collateral required for secured loans

Strict Eligibility Requirements 

Newtek is more strict than many other lenders in regards to who it will lend to. No startups, nonprofits, or new businesses can borrow with Newtek. The financial performance and years of experience requirements are as follows: 

• Existing businesses with 2-3 years of tax returns
• U.S.-based businesses that operate for profit
• Businesses with repayment ability from earnings