Newtek

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Newtek

Newtek offers small business loans, SBA loans, payroll, and more

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Newtek has branded itself the "Small Business Authority" with a goal of using its website to provide content and services that make it the premier destination for small businesses in the U.S. Newtek offers term loans for business financing needs and real estate purchases; Small Business Administration (SBA) loans; and merchant cash advances of future credit and debit card sales. The company also offers loan portfolio underwriting, servicing, and closing support for other financial institutions. Consumers that choose Newtek should remember that they must have a credit score of 550 or higher.

Find Newtek reviews below to see what customers have to say about the business loans provider.

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9.1

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Newtek Logo Newtek ›

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The Good

  • Alliance Partners
  • Large Loans
  • Variety of Financing
  • Additional Small Business Support Services
  • Simplified Application Process
  • Quick Funding
  • Flexible Terms
  • Live Chat
  • Available Nationwide

Alliance Partners

Small businesses can apply for pre-qualification at Newtek's website, but the application and approval process is handled via phone with a Newtek employee. Newtek also works with "alliance partners" who refer small businesses to Newtek for financing. Newtek's alliance partners include credit unions such as Navy Federal and Spire. Also financial companies such as Morgan Stanley and AIG.

Large Loans

Newtek provides small businesses with term loans from $50,000 to $10 million that are payable with 7 - 25 year amortization schedules. Newtek claims it can offer longer repayment terms than banks, which allows it to lower payments and provide more attractive rates than banks. The company also defines itself as "the nation's leading non-bank lender, specializing in end-to-end financing solutions for small businesses."

Variety of Financing

Newtek offers term loans, SBA loans, and other forms of financing, such as real estate loans and accounts receivable financing. For some loans, Newtek can work with businesses even if they are startups or if the business owner(s) have below standard credit ratings. Newtek offers business term loans for these types of businesses:

  • Existing Businesses with 2-3 years of tax returns
  • U.S.-based businesses that operate for profit
  • Businesses with repayment ability from earnings
  • Businesses from the following industries: manufacturing, wholesaling, services, retailing, general and heavy construction, special trade construction, and more

Additional Small Business Support Services

Newtek doesn't just offer loans to its business customers. The company also provides services to assist small businesses in becoming successful, including:

  • Electronic payment processing
  • Website hosting, design, and development
  • Insurance for commercial, health, and personal policies
  • Payroll management
  • Accounts receivables management
  • Cloud hosting services
  • Internet marketing
  • Brand identity

Simplified Application Process

Newtek conducts telephone interviews to determine if your business can be pre-qualified for loans. Newtek's staff works with businesses to complete a condensed application process and explain what kinds of funding are available. Newtek's staff can assist their small business customers with creating documentation required to qualify for loans, including preparing business plans.

Quick Funding

Newtek can provide you with your funds in as little as one business day. This is a competitive time frame and is convenient for borrowers who need cash flow quickly. However, keep in mind funding time may vary by situation.

Flexible Terms 

Newtek's loan repayment terms range from 7 to 25 years. This is a wide range and serves a variety of borrowers' needs, whether they want to pay back their loans as soon as possible or if they need to wait a long period of time. Newtek provides flexibility to the borrowing process. Repayment terms may vary by situation. 

Live Chat

Newtek has a live chat function on its website that potential borrowers can refer to if they have any questions. This makes it simple for customers to get the help they need quickly without having to call the company and wait for an available representative. You can also use the website to request a call from Newtek. All you have to do is fill out a brief form with information such as your name, company name, email address, etc. 

Available Nationwide

Newtek provides financing to businesses in a large variety of industries. The company makes it financing options available to U.S. owned and operated businesses in all 50 states.

The Bad

  • Limited Online Information
  • Slow Pre-Qualification Time

Limited Online Information

Like many other business lenders, Newtek does not put much information about the cost of its loans on its website. Newtek does not list a range of interest rates for any of its financing options. Newtek also does not list the cost of any origination fees, closing fees, or prepayment penalties. The company does specify it charges a "packaging fee" of between $1,000 - $2,500 for SBA 7(a) loans depending on the amount of the loan.

Newtek claims it can offer attractive rates for its financing options, but does not provide any examples of what interest rates it charges or the cost of any application fees businesses can expect to pay if they get a loan with Newtek. To find out about the fees and terms of the loans available to them, business owners need to go through the application process, but they could benefit from knowing this information in advance of applying for the loans so they can compare the costs of Newtek's loans to its competitors.

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

Slow Pre-Qualification Time

Newtek's pre-qualification process requires business owners to fill out an online form and wait to be contacted by a Newtek employee with a quote or to call the company. Newtek states pre-qualification can take 48 hours, which is much slower than other lenders who have online pre-qualification processes that let businesses know almost immediately if they can qualify for a loan.

The Bottom Line

Newtek provides an alternative to traditional banks for small businesses seeking loans. The company offers a variety of term loans, SBA loans, and other types of financing, such as real estate loans and accounts receivable financing. The lender offers business support services to help small businesses manage and grow their companies.

Newtek will work with startups and business owners with below standard credit ratings and its loans are available to U.S. owned and operated businesses throughout the U.S. Newtek offers terms of up to 25 years, which may help lower the monthly payments required for its loans, and it can provide loans of up to $10 million.

To determine whether the interest rates and fees Newtek charges for its loans are affordable, business owners need to apply for pre-qualification and speak with a Newtek employee. If you have the time to go through the pre-qualification and application process, it may be worthwhile to see if Newtek's costs are more competitive than other lenders' costs for your business financing needs.

Check out Newtek reviews below to learn more about the customer experience with the lender. 

View Best Business Loan Lenders

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Will Pflaum
May 17th, 2019 Stuyvesant Falls, NY DETAILS
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I took out a loan to the small business administration administered by Newtek. They were extremely sloppy or something, never sending me an invoice so I have no idea how much to pay or where to send a check for my variable interest rate loan. When a check from my online banking at my local bank went missing they assessed a ton of fees and penalties. When I objected to these quite astronomical penalties they moved immediately to close my loan and give me a bad credit rating and get their 85% back from the government. Shady operation.

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Joseph Zumwalt
January 25th, 2019 Kalispell, MT DETAILS
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I started the process of getting a loan through newtek, to buy a distribution route with Mission Foods, 5 months ago. The agent assured me that it was in the bag. 4 months into the process, the agent informed me that they had forgotten to check the SBA franchise registrar beforehand. They kept $1200 of my money, and told me, "whoops, yeah, we should have done that".