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LAST UPDATED: May 12th, 2023

Established in 1998, Newtek offers small business financing directly to borrowers and also provides business lender resources to help other lenders scale their current lending capabilities. 

Newtek claims to be all about lending solutions, not lending products. Each loan is customizable according to need and may include a combination of a term loan and a line of credit. Therefore, it offers flexibility to borrowers who need a custom business loan. 

The company also offers loan portfolio underwriting, servicing, and closing support for other financial institutions. 

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

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The Good

  • 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

The Bad

  • 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

The Bottom Line

Businesses in the fields of manufacturing, wholesaling, services, retailing, general and heavy construction, and special trade construction can borrow with Newtek along with other for-profit businesses. 

However, they must have at least two years of tax returns, so newer businesses are ineligible for funding. You’ll need to look into other lenders if your business falls into that category. 

In addition, 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.

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.

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

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Nathaniel J Frank Oshkosh, WI

I did a large scale SBA loan with Newtek and found them to be professional and courteous. We had an excellent account manager who did a great job communicating and was extremely fun to work with. SBA loans are a lot of paperwork, I mean, it's a federal loan and that is not Newtek's' fault. So, if you're going for a SBA loan make sure you know just how much paperwork is involved. Newtek helped me navigate through the paperwork and frustrations therein. I cannot say enough good things about this company and if you are well educated in the process, respectful, and willing to put in the effort, I believe anyone will find Newtek a great resource to help you grow your business.

3 years ago

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DM DM Warrington, PA

Awesome to work with. Loan went fast and got approved quick. I will use them again for future needs. Great stack of solutions.

1 year ago Edited March 22, 2022