Newtek Small Business Finance: Your Business solution
“Your Business Solutions Company” is the tagline of Newtek Small Business Finance LLC company. It’s a direct lender that provides loans and also offers many other services to small businesses or companies. But its key focus is on financial assistance as reflected by its name “Newtek Small Business Finance.”
The Newtek company is trying to provide one-to-one solutions to small businesses or companies to help them in their finance-related needs. So, if you have a small business and striving for business credit or business loan. Then Newtek is the best solution for you.
Interestingly, they not only provide loans but their lending or financial specialist will help you out from the initial documentation phase till finding the best solution for your financial problems. Therefore, Newtek is an amazing solution for most companies because of its flexible repayment term and limits of borrowing.
However, along with the many benefits and flexibilities of borrowing from Newtek, there are also some limitations in taking their services or borrowing from them. For example, the information related to the borrowing costs is not disclosed by the company. So, it makes the process a little bit risky for you.
Therefore, if a company is in need of financial support and it is deadly required then going for Newtek risk is not a big risk than losing your company or small business setup. So, for your ease, the blog is also going to explain the list of services offered by Newtek Small Business Finance.
Newtek Small Business Finance Services:
There is a list of services offered by Newtek Company. Which are the following:
- Business Lending Solutions
- Manage Cloud Solutions
- IT Security & Compliance Solutions
- Payment Processing Solutions
- HR, Payroll & Benefit Solutions
- Insurance Coverage Solutions
- Cloud Desktop Solutions
- Disaster Recovery Solutions
Moreover, Newtek has also another category of Financial Institution that offers four different types of financial Programs or help such as:
- Business Lender Program
- Business Solutions Program
- Branch Cash Advance
- Force-Placed Insurance
These are some specific financial programs available for businesses that are in need of financial assistance and financial solutions.
Moreover, under these specific programs and services, they offer both lines of credit and also term loans. However, both are different forms of borrowing. The lines of Credit, allow the borrower to draw out credit according to the need and at a moment of need as per his/her own will. Maximum limits of money are set for each line of credit to draw by the borrower. Although, the interest is applied to that credit limit. Moreover, the credit for lines of credit is fixed according to the mutual agreements between the borrower and lender for a specific time period for a specific limit of money.
In contrast to Lines of Credit, a term loan is different. It is a form of simple borrowing because the lender provides a specific lump sum amount to the borrower as decided in the agreement. Similarly, the term loans are also paid back with interest.
Prerequisites of Borrowing from Newtek Small Business Finance:
Newtek set some prerequisites for borrowing from them. Therefore, there are different types of prerequisites requirements for different types of financial assistance. These requirements held you eligible for getting financial assistance from Newtek. However, here I am discussing the requirements for the two key types of financing one is Line of Credit and the other is term loans.
Line of Credit Prerequisites:
There is a complete list of requirements set by Newtek for the line of credit borrowings. Therefore, the most important thing is that your business must have collateral in order to qualify for the advance. A list of some key requirements are the following:
- Your business line of credit can be qualified through non-perishable inventory or unpaid invoices
- History of your credit is required
- Your personal credit score
- History of Your business credit
- Your business credit score
- Business time in operation
- Minimum annual revenue of your business
- And many more
If your business will be fall under these requirements then there are greater chances of securing financial assistance from Newtek.
Term Loans Prerequisites:
Therefore, the services of term loans of Newtek are awesome. However, if you have a small business of specific items trades, construction business, wholesaling business, retail business, services business, manufacturing business, and so on, then it’s an ideal solution for your business.
Moreover, some of the key requirements of term loans are the following:
- The business must be US-based
- Profit-making businesses
- Must have a maximum of 2 to 3 years of tax payments
- Have a specific amount of cash flow (incoming) to smoothly pay back the loan payments
- And many more
Strength and Weaknesses of Newtek Company according to their clients:
Strengths of the Newtek Company:
|Strengthen Points||Explanation||Additional Points|
|Lender Resources||They are unique and best because of their ability and the depth and breadth of their financial resources.
They not only work for borrowers but also work for the lender to expand their lending products.
|Moreover, they can also do it for your company.
· Credit analysis
· Business Audit
· Portfolio servicing
· Compliance policy
· Eligibility and structuring
|Asset-Based Financing||Provides a flexible model of the loan along with competitive interest rates.||· The maximum amount of lines
· One year term for renewable
· More than 80percent and 50 percent advance rate
· Get instant cash for invoices
· A Non-perishable inventory can also qualify
|Loan Amounts and Uses||Provide enough amount of loans under term loans that can fulfill most of the needs of small businesses. Moreover reasonable rates along with lower payments than banks and other financial organizations.
Moreover, for 7 to 25 years they have no re-payment penalties. Along with a high amount of lines of credit.
|· Helps to increase working capital
· Assisting in new branch opening
· Expanding your business
· Help you in investments
· And many more
|Customer Services||One-to-one interaction for each client. A specific Lending specialist supports you throughout your term. Stay with you to assist you from the first to the last step.||· Provides multiple loans and benefits solutions
· Create a loan solution for you
· Live chat is available
· Moreover, email, call-back, phone, all type of medium is available to contact
Weaknesses of the Newtek:
|Loan Program Unknowns||The company lacks in providing the sample interest rates. Because their rates are dependent on many different factors that are individualized.||· Add credit score required for qualification
· Periodic revenue requirement
· Secured loans are limited to the collateral requirement
|Too strict requirements for qualifying||The process of borrowing is too strict related to lending. If your business is newly set up or non-profits you can not apply for loans. Because they have limited it to some credit requirements and years of operation.||· Must Support new business Startups
· Must be flexible in credit requirements
· Set new policies for new businesses
So, this blog tries to thrown some light on the Newtek Small Business Finace LLC Company. In order to provide useful information to those who are wondering for financial assistance. Therefore, if your business is a profit-making company along with having some years in business then you must apply for the loans to expand or grow your business along with improving your products or services. I hope so, you had enjoyed this interesting and useful information. And planning to become a partner with Newtek company.