Newtek Small Business Finance Review 2023

Pros

• Choice of financing options
• Long terms available
• High borrowing amounts
• Quick prequalification
• No prepayment penalties

Cons

• Not available to new businesses
• Lack of transparency regarding rates

Newtek Small Business Finance Overview

Newtek is a loan company operating as part of the NewtekOne family of small business service providers. Newtek lending options include small business loans and lines of credit, with funding available in amounts as low as $1,000 and as high as $15 million and repayment terms from five to 25 years.

Newtek pairs borrowers with a dedicated lending specialist to design a customized borrowing strategy that fits each business. Newtek reps can analyze your business needs and suggest the best financing options, including loans, lines of credit, and blended solutions that meet both your short- and long-term needs.

Newtek is a preferred SBA lender, and the third most prolific SBA 7(a) lender, and Newtek has earned a place on our Merchant Maverick list of the 10 best SBA lenders.

Will Newtek be the best lending option for your small business? This complete Newtek small business loan review will help you decide.

Newtek Lending Products

Newtek offers term loans and revolving lines of credit with financing from $50,000 to $15 million. A NewtekOne specialist can help you understand the differences between loans and lines of credit and decide which is right for your business.

If you’re looking for an SBA loan, Newtek is a preferred SBA lender specializing in SBA 7(a) loans. Our SBA loan explainer article can help you determine if an SBA loan is a good fit.

Newtek offers two types of lines of credit: asset-based and accounts-receivable financing. Asset-based financing typically bases your credit amount on an asset, such as inventory, that you offer as security to guarantee the credit. Inventory lines of credit run from $50K-$5 million, with most non-perishable inventory qualified as security.

Accounts receivable financing, on the other hand, uses your outgoing invoices as security, and your credit total will be based on your total accounts receivable.

Accounts receivable lines of credit from Newtek are available from $50K-$5 million and allow you to borrow against invoices due 30, 60, and 90 days out.

Other Services Offered By NewtekOne

Newtek’s small business financing, loans, and lines of credit are not the only resources the company offers. Here are some others:

Newtek Borrower Qualifications

Borrower qualifications through Newtek are based on the type of financing you wish to receive.

The borrower requirements listed here are minimum requirements. You may need to meet additional requirements, including personal credit score and history, business credit score and history, minimum annual revenue, and time in operation, to receive a financial product through Newtek.

Newtek has an easy online application process that can take you through the steps for prequalification.

Newtek Terms & Fees

With a term loan through Newtek, you can receive financing of $1,000 to $15 million. Repayment terms are between 5-25 years. Your loan may come with no prepayment penalties, although some products may have limited penalties.

Newtek also offers revolving asset-backed lines of credit that provide more flexibility for short-term financing needs. Funds can be used for short-term needs, such as paying taxes, meeting payroll, covering operational expenses, marketing costs, or paying off more expensive financing.

Newtek offers two lines of credit, both with funding available from $50,000 to $5 million.

The first is accounts receivable financing. You can receive an advance of up to 85% for invoices due within 30, 60, or 90 days out. Repayment terms are set at 12 months and are renewable.

The second option is an inventory-backed line of credit, with an advance rate of up to 50%, with your qualified, non-perishable inventory. Repayment terms are 12 months and are renewable. Most non-perishable inventory qualifies.

Newtek does not list interest rates for its financial products. However, the company does state that it has competitive interest rates. If you have a specific loan product in mind, you should be able to gain a general idea of the APR by speaking to a Newtek representative.

Newtek Application Process

To get started with Newtek, you’ll need to fill out the prequalification form on the company’s website. This form requires a fair amount of personal information, including first and last name, date of birth, company name, contact information, number of employees, and requested loan amount. You’ll also have to provide your Social Security number for a credit check, although Newtek does not reveal on its website what score is required to qualify for lending.

Once you submit the form, a member of the Newtek team will call to gather more information and discuss financial solutions for your business. You can also bypass the online form and simply connect with Newtek by phone.

You’ll be assigned a dedicated lending specialist who will complete all application documents with you. Prequalifications are typically available within 48 hours, and your lending specialist will continue to work with you every step of the way to finalize your loan.

NewtekOne Sales & Advertising Transparency

Newtek offers only general information about the loans, financial products, and services it provides to small businesses on its website. That’s not completely unusual in the small business loan industry, where changing rates combined with factors like the applicant’s creditworthiness make it hard to deliver accurate information online.

To learn about the specific rates, terms, and products available for your business, you must connect with a lending specialist over the phone or through the Newtek website. Doing so requires you to share personal contact information and your Social Security number. You can also connect with a Newtek rep on the phone.

Newtek Customer Service & Technical Support

Newtek makes it easy for prospective and current clients to get in touch. Although you can start the application process online, you also can contact Newtek by phone to prequalify or inquire about the company’s products and services.

You can send your questions or comments through email or start a live chat through the company’s website. You can also send inquiries or find out the latest news through Newtek’s social media profiles on Facebook, Twitter, and LinkedIn.

Remember that as you apply for funding from Newtek, you’ll be assigned a dedicated account representative who will not just help you fill out the forms needed to qualify; your rep will do that work for you.

User Reviews

Although it’s easy to find both negative and positive comments from Newtek customers, it’s important to examine the company’s overall reputation. To that end, Newtek is accredited with the Better Business Bureau and currently has an A+ rating with the BBB despite its current customer review composite score of 3.61/5. Those numbers actually represent a significant improvement from the time of our last review, when BBB’s customer reviews gave Newtek just 1.61/5 stars.

There’s an interesting contrast between the BBB rating and the reviews from a total of 46 users. So let’s look at another review site, to see if customers elsewhere have similarly poor opinions of Newtek. On Trustpilot, Newtek has just a small sample, with just 26 user reviews and a composite rating of 2.2/5. That represents a slight drop from the time of our last review when Newtek was rated 2.7/5 stars.

We noted in our last review that the majority of negative comments regarding Newtek lending had to do with borrowers’ experience with Paycheck Protection Program loans in 2020 and 2021. The popular but complicated PPP program led to many reliable lenders getting barraged with negative reviews and complaints, and since the program has ended, we will not be focusing on those. So we will take a look at more current user comments to see if we can identify any new trends.

Negative Newtek Reviews & Complaints

Newtek has had 49 BBB complaints closed within the past three years, and eight complaints closed within the past 12 months. Many of the complaints posted online were about other products with the larger NewtekOne family of business products, such as insurance, banking, or merchant services.

We found a few complaints related specifically to Newtek small business funding, including these:

• Documentation Requirements: One of the most common complaints revolves around the documentation and paperwork requirements needed to receive a loan.
• Disorganization: Some customers complained that the paperwork sent to Newtek was lost and needed to be resent. Another complaint was confusion over what paperwork was needed and when it needed to be sent.
• Unresponsive Customer Service: More than a few customers said that they were unable to connect with their account reps, and, when they did, the reps were unhelpful.
• Lengthy Loan Process: Even though prequalifications can be received quickly, some customers complained about the time it took to complete the loan process.
• Unable To Meet Requirements: Some reviewers state that despite having high credit scores and solid credit histories, they were unable to receive financing through Newtek.

Positive Newtek Reviews & Testimonials

Satisfied Newtek customers are enthusiastically positive. Here’s a sampling of what they had to say:

• Speedy Service: Newtek isn’t the fastest online lender, but it’s pretty fast as far as long-term installment loans go.
• Reasonable Rates: One customer said they were very happy with the rate they received on their loan.
• Customer Service: Several customers spoke highly of the efforts of their Newtek representative, saying they appreciate the personal attention of a dedicated, professional, helpful, and knowledgeable rep.

Final Verdict Of Newtek Small Business Finance

Newtek offers a variety of financing options for all kinds of small businesses. Despite some negative user reviews, we found plenty of positive reviews to balance our opinion of this small business lender. User ratings have improved noticeably since the time of our last review.

The only red flag we spotted in our careful review of Newtek small business financing is a complete lack of transparency regarding rates and some opacity regarding terms. It’s important to keep in mind that Newtek is not the only lender to earn our displeasure in this area.

Fortunately, you can count on receiving full disclosures after you prequalify for Newtek financing. If you’re interested in learning more about a potential Newtek loan, you can inquire by phone or online to find out more about what Newtek has to offer, potential costs associated with its financial products, and borrower requirements to determine if this lender is the right fit for their small business.

On the other hand, if you’d like to keep looking for a lender that might suit you better, we have suggestions. For lines of credit, check out our list of the best business lines of credit. If your credit is less than stellar, don’t worry, because we’ve got options for you, too. For example, you can apply for a loan that doesn’t require a credit check.

And, of course, Newtek is not a good choice for startup funding. Successful Newtek lending applicants will have a minimum of two years in business. If yours is a newer business, you’ll have to look elsewhere for startup loans.

Whatever you decide to do, remember that you’ve got options. Take your time, do your research, read some user reviews, and talk to company representatives before you decide. The right business loan for you is out there, and we wish you the best in your search to find it!

Newtek Small Business Finance FAQs:

Find Funding for Any Credit Level

BusinessLoans.com	Visit Site Read our Review

Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.

Find Funding for Any Credit Level

BusinessLoans.com	Visit Site Read our Review

Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.

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