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Small Business

Newtek Business Loan Review

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Newtek Business Solutions is a business development company (BDC) that provides financing solutions to business owners. The New York-based company offers financial products such as term loans and lines of credit.Newtek, founded in 1998, has been a publicly-traded company for nearly two decades. As a BDC, Newtek has several portfolio companies that provide payroll processing solutions, IT services, health insurance and benefits. BDCs were created by Congress to invest in small- and mid-sized companies. Though they share some things in common with venture capital funds, BDCs are typically regulated investment companies.

Newtek has approved more than $2 billion in financing to business owners. Keep reading to find out more about what funding solutions Newtek could offer your small business.

Newtek financing details

Newtek provides standard business financing options like term loans and revolving lines of credit, as well as commercial real estate loans for large transactions. Check out the details on what Newtek offers:

Term loans

Newtek’s business loans range as high as $10,000,000 with repayment terms between 84 and 300 months. Business owners can use term loans to expand their operations or acquire a new one, increase their working capital, purchase equipment and inventory, or refinance existing business debt. Refinancing a business loan entails getting a new loan to pay off an existing loan, and receiving better terms, lower interest and fewer fees in the process.

Lines of Credit

Newtek offers revolving lines of credit that you must secure either with your accounts receivable or inventory. An accounts receivable-backed line of credit is available from $10,000 to $1,500,000, while an inventory-backed credit line could range between $50,000 and $500,000. You could be approved for an 80% advance on your accounts receivable, and 50% on your inventory. You could have access to a line of credit in two weeks or less. Business owners can draw from a line of credit to cover working capital, payroll, taxes or other operational costs.

Commercial real estate loans

Newtek provides loans from $125,000 to $10,000,000 to buy or refinance commercial real estate. Newtek requires as little as 10% equity from borrowers. If approved, you could use the loan to purchase or expand an existing building, refinance existing real estate loans, acquire land or fund ground-up construction.

Many of Newtek’s term and real estate loans are backed by the U.S. Small Business Administration. SBA loans typically offer low interest rates and long repayment terms but have rigorous requirements. A Newtek specialist would be able to walk you through the lengthy SBA application process.

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What businesses are eligible for Newtek financing?

For-profit businesses based in the U.S. are eligible for Newtek financing. To qualify for a term loan or commercial real estate loan, you must provide two to three years of tax returns. You should also be able to demonstrate your ability to repay debt through your previous and projected cash flow statements.

Additionally, a line of credit requires a business owner to provide non-perishable inventory or invoices that are due in 30, 60 or 90 days.

Newtek finances businesses in a range of industries, including manufacturing, wholesaling, retailing, general and heavy construction, as well as special trade construction. Businesses involved in gambling or casino operations would not be eligible for Newtek financing. Otherwise, the lender can generally work with any business. Keep reading for more about Newtek’s eligibility requirements.

The pros and cons of Newtek

Pros

  • Customer support. An account manager is assigned to each client to serve as a point of contact for questions and issues.
  • Additional services provided. In addition to providing financing, Newtek could offer your business payroll, HR and benefits solutions, as well as security and compliance services.
  • Large loan and credit amounts available. Newtek’s business financing products offer large amounts of funding, which could cover major projects and purchases.

Cons

  • Slow time to funding. It could take four to six weeks to receive a term loan and up to two weeks to access a line of credit.
  • Long repayment terms. To repay a term loan, you would be making payments for 84 to 300 months.
  • No online application. To apply for financing, you would need to contact Newtek. A lending specialist would complete all documents on your behalf.

Application process and requirements

Most alternative business lenders have an online application process for prospective borrowers. However, Newtek requires applicants to contact the company to apply.

You can call or email Newtek to connect with a lending specialist who will fill out your application documents. The lending specialist works with you throughout the entire process and you could be pre-qualified for financing in 48 hours. Newtek also offers a live chat feature and allows you to request that a loan specialist call you. You could fill out a pre-qualification form online to have a specialist contact you as soon as possible.

Newtek does not require applicants to meet certain revenue or credit score thresholds, although Newtek defines small and midsize businesses as those with revenue between $1 million and $100 million. You would need at least two years in business to be eligible for financing.

Newtek tends to work with seasoned companies, and you may be more likely to qualify if your business:

– Has three to 10 years of operational history.

– Has significant managerial expertise.

– Provides a personal guarantee.

– Shows creditworthiness and a strong balance sheet and cash flow.

The fine print

Interest rates not available online. Newtek’s website is sparse when it comes to details about the cost of financing. You would need to start the application process with a loan specialist to find out how much interest you might owe on a term loan or line of credit. The lack of transparency could make it difficult to compare Newtek with other lenders when shopping for a business loan or line of credit. But as an approved SBA lender, rates offered by Newtek may be relatively low, assuming your business qualifies. The average interest rate for a loan through Newtek Small Business Finance, the largest non-bank SBA 7(a) lender in the U.S., was 7.9% at the end of 2018.

Must be able to demonstrate profitability. Because Newtek does not ask for a minimum revenue figure or personal credit score, the lender bases its decisions on a business’ ability to repay debt. You would need to prove your company is profitable enough to cover regular payments.

The bottom line

Newtek offers a range of financing products to business owners in need of funding, but it may be a best fit for those with a significant track record. Term loans and lines of credit are available in large amounts compared with other alternative business lenders, making Newtek an attractive option if you have big expenses. Newtek also provides commercial real estate financing if you need help paying for your physical business space. If you’re seeking an SBA loan, compare Newtek’s terms with those of other SBA lenders.

Newtek does not disclose interest rates online, which may make it challenging to get a clear picture of what the lender offers. You would need to complete an application to find out what interest rate you qualify for.

Potential borrowers must work with a loan specialist to apply for financing. Other alternative business lenders typically allow business owners to submit an online application. Newtek’s process might not seem as easy, but you may find it helpful to have a specialist walk you through the application. A loan specialist would make sure you apply for the right product to fit your business’ needs, and they may collaborate with you on a plan for spending your funds efficiently.

Newtek’s time to funding may be slower than other alternative lenders, and repayment terms may be longer than you’ve seen elsewhere. But if you’re not in need of immediate financing, Newtek may be worth the wait. You might be able to borrow a substantial amount of money, and longer repayment terms could be easier to handle than a fast repayment schedule that would impact your daily cash flow.

When searching for business financing, be sure to compare lenders and gather as much information as possible before settling on an offer. If Newtek offers rates and terms you’re comfortable with, you would be able to access financing to meet various needs within your business.

If you are just starting your business financing journey, consider comparison shopping with LendingTree, MagnifyMoney’s parent company. You simply fill out a short online form and can be matched with up to five business loan offers from lenders, based on your creditworthiness.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
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Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

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Small Business

BB&T Business Loans Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. Based on your creditworthiness you may be matched with up to five different lenders.

BB&T is one of the largest financial services holding companies in the U.S., offering a variety of services like commercial banking, wealth management and specialized lending. The company is based in Winston-Salem, N.C., and operates 1,800 financial centers across 15 states and Washington, D.C.

The company recently announced it will merge with Atlanta-based SunTrust Banks, and the combined entity will be headquartered in Charlotte, N.C. The newly formed company will be the sixth-largest bank in the U.S. based on assets and deposits.

BB&T’s small business loans could help owners who need an influx of capital. BB&T is also a Small Business Administration (SBA) preferred lender, issuing SBA-backed loans.

If you’re considering a BB&T business loan or other financing, we’ll break down what you can expect from the financial institution.

BB&T business loan details

BB&T offers a few financing options for business owners. However, limited information about loan amounts, rates and terms is available online. We contacted a bank representative for further details so this review can help you make comparisons when shopping for financing.

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Loans

Business owners can get a secured or unsecured loan for up to $5,000,000, according to a representative. Repayment terms are generally between 36 and 120 months, depending on collateral, per the representative. BB&T didn’t disclose the average APR range but said your credit quality, repayment term, loan amount and whether the loan is backed by collateral affect your rate, which can be fixed or variable.

Lines of credit

BB&T’s revolving line of credit — available for up to $2,000,000 with repayment terms typically between 12 and 60 months, according to a representative — allows business owners to access funding whenever they need it. You could draw from your maximum credit amount to cover day-to-day operating expenses, supplement your cash flow or pay for unexpected business costs. As you pay down your balance, you would have access to the full credit line again. BB&T said its line of credit interest rates are based on the same factors as with loans, including credit quality and loan amount, but it didn’t specify an average range.

SBA loans

SBA loans can be used to start a new business or buy an existing one, pay for working capital expenses, purchase land or equipment, make renovations or refinance debt. The maximum SBA loan amount available from BB&T is $5,000,000, according to a representative, though they didn’t detail average interest rates. For loans covering real estate costs, repayment terms are up to 300 months. For loans for equipment, machinery or working capital, terms can extend to 10 years. Because BB&T is an SBA-preferred lender, the bank could process your application quickly to help you get your funds faster.

Equipment financing

Business owners can finance equipment purchases or leases through BB&T for up to $2,000,000 with terms typically from 36 to 84 months, according to a representative. BB&T financing covers industrial equipment like manufacturing and construction tools, as well as office equipment and transportation assets. Fixed interest rates are dependent on credit quality, repayment terms and financing amount, though the bank didn’t reveal its average interest rates.

What businesses are eligible for BB&T financing?

BB&T doesn’t disclose eligibility requirements on its website, which makes it hard when you’re trying to compare options. Like most traditional banks, BB&T likely prefers small businesses owners who have good credit histories. BB&T does ask for a minimum of two years in business, according to a representative.

Borrowers have to apply on the phone or in person, so you may not be eligible for BB&T financing if you’re not near a branch. The 15 states where BB&T operates are Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia. It also operates in Washington, D.C.

Your eligibility for an SBA loan would depend on how your business earns income, where the business operates and your personal character. Borrowers must own a for-profit business based in the U.S. You must have invested your own money and time in the business, and you must be unable to find funding from any other lender.

The pros and cons of BB&T

Pros

  • Expedited SBA loan processing
  • Several financing options from which to choose
  • Large loan amounts and long repayment terms available

Cons

  • Few loan details listed online
  • Must apply in person or by phone
  • BB&T operates in just 15 states and D.C.

Application process and requirements

Business owners can apply at one of BB&T’s branch locations or by phone. You could also submit an online request for a BB&T representative to give you a call or send you an email with more information.

When applying for financing, BB&T would likely ask for the following documents:

  • Business tax returns
  • Personal financial statements
  • Personal tax returns

If you want to obtain an SBA loan, you may be required to submit additional items:

  • A completed SBA loan application
  • 3 years of business and personal tax returns
  • Current financial statements
  • Description of how the business will profit from the loan
  • Business plan
  • Copy of land sales or construction contracts for commercial real estate loans

The fine print

Few details available online. BB&T’s website does not show average loan amounts, interest rates or repayment terms. You would have to call or visit a BB&T location to find out how much you could be qualified to borrow. We reached out to a company representative for further details, but it could be difficult to compare BB&T with other lenders when shopping for business financing.

Applicants must be near a branch. If you’re not in one of the 15 states (or Washington, D.C.) where BB&T does business, you’re out of luck. Potential borrowers need to be near a BB&T branch to obtain financing, though you don’t have to apply in person. You can apply by phone in states where BB&T operates. BB&T is primarily located along the East Coast.

Bottom line

BB&T is one of the largest financial institutions in the U.S., and it will only gain prominence through the merger with SunTrust. BB&T’s financial history makes it a reputable business lender and a solid option for financing. However, BB&T doesn’t disclose details about its financing options online. We got more information from a representative, but you will need to apply or contact the bank for more specifics.

Also, BB&T does business in just 15 states. If you live far away, you may not be eligible for a loan or line of credit.

Like many traditional banks, BB&T could have strict eligibility requirements for business financing. You may be required to have a strong personal credit history, as well as substantial experience as a business owner, to receive favorable rates and terms.

Online business lenders typically have more lenient requirements, but you could pay a price for easier approval. Financing from online lenders can be expensive, while bank financing could have more favorable rates and terms. Consider starting your online business loan search with LendingTree, MagnifyMoney’s parent company. This way you can compare several loan options at once. You simply fill out a short form online and can get matched with up to five business loan offers from lenders, based on your creditworthiness.

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SBA loans, which BB&T offers, are often the most desirable lending products, as they come with competitive rates and terms. BB&T is an SBA-preferred lender and could be able to expedite your SBA loan application.

When searching for business financing, be sure to shop around to find the best offer. If you live near a BB&T branch, you may want to consider applying to see what kind of financing you could receive from the bank. You may be able to qualify for a BB&T business loan or line of credit that can give your business a boost.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
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Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

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Reviews, Small Business

National Funding Business Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

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National Funding is an online business lender that provides working capital and equipment financing to entrepreneurs. The San Diego-based lender has provided funding to small businesses in the U.S. since 1999.

It accepts applications online, sometimes providing funding in as little as 24 hours. It doesn’t require collateral or a down payment when you apply for a loan, and there’s no obligation to accept a loan offer. National Funding has an “excellent” rating and a majority of positive reviews on Trustpilot, a consumer review platform.

In this review, we’ll break down what National Funding has to offer to help you decide if this lender is the right match for your business.

National Funding loan details

National Funding offers several financing products to eligible small business owners. APRs range from 17.00% to 38.00% for qualified applicants, which could include an origination fee up to 2.50%.

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Working capital

Small business loan

National Funding issues small business loans between $5,000 and $500,000. You could use a small business loan to cover a variety of expenses, including equipment upgrades, inventory and building materials. To collect payments, National Funding makes automatic daily or weekly withdrawals from borrowers’ bank accounts. Terms for small business loans range from four months to two years.

Merchant cash advance

National Funding provides merchant cash advances of up to $250,000. It gives business owners a lump sum of cash in exchange for a portion of their future credit card sales. The lender automatically takes a percentage of each credit card transaction until the advance is paid back. Merchant cash advances typically have more lenient eligibility requirements than business loans, but the fast repayment process can be difficult for some business owners.

Equipment financing

Business owners can buy new or pre-owned equipment with financing from National Funding. The lender offers up to $150,000 in equipment financing and does not require a down payment. Payments are due monthly with terms that span two to five years. National Funding offers deferred payment options, which means you could make payments seasonally or quarterly — or skip payments if you need. Though you could temporarily adjust your payments, you may later face a catch-up period and your payment amounts could increase. Be sure you to check your loan agreement to understand what National Funding would expect.

National Funding provides a “guaranteed lowest payment” for select equipment leases as well. Within seven days of receiving an equipment lease offer from National Funding, you must present a competing lease offer exceeding $10,000 with the same terms and conditions. If the competing offer provides a lower monthly lease payment than what National Funding is offering, National Funding will either beat the offer or pay you $1,000.

See our top picks for the best equipment financing companies for 2019.

What businesses are eligible for National Funding financing?

National Funding works with business in a wide range of industries. Here are some examples of the tailored product offerings:

Loans

  • Agriculture
  • Beauty and wellness
  • Construction and contracting
  • Medical
  • Restaurants
  • Retail
  • Trucking

Equipment financing

  • Automotive repair
  • Commercial trucks, trailers and vehicles
  • Construction and contractor equipment
  • Dental
  • Farming
  • Landscaping
  • Manufacturing
  • Medical
  • Restaurants

National Funding also has special interest loan programs for minority-owned, veteran-owned and women-owned businesses.

The pros and cons of National Funding

Pros:

Possible to be approved for small business loan with credit score as low as 500
“Guaranteed lowest payment” provided for select equipment leases
Early payoff discounts are offered

Cons:

Lowest possible APR is 17.00%
Could take up to seven days to receive funds
Startup businesses are ineligible

The application process and requirements

Business owners fill out an application online, which National Funding could process right away. If approved, you could see funds in your bank account in one to seven days.

All applicants are required to submit their business name, address and tax identification number. Equipment financing applications require a quote from the vendor from which you plan to buy the equipment. And merchant cash advance applications ask for your last four months of credit card statements.

Eligibility requirements depend on the product for which you’re applying:

Small business loan

  • $100,000 in annual sales
  • 1 year in business
  • FICO Score of at least 500

Equipment financing

Merchant cash advance

  • 1 year in business
  • Over $3,000 in monthly credit card transactions

After you apply, National Funding would disclose the interest rate and loan terms for which you qualify. Some online lenders provide a range of rates and terms upfront without an application, which may make it difficult to compare National Funding with other lenders while shopping.

The fine print

Discounts available for early payoff. Although you wouldn’t know the price of your loan until submitting an application, you would have an opportunity to save money by paying off your debt early. If you pay off equipment financing early at any point, you could save 6% off your total balance. If you pay off working capital financing within the first 100 days, you could receive 7% off your total amount. You must pay the balance in full and be in good standing with National Funding to take advantage of the discount.

The bottom line

National Funding provides working capital and equipment financing to business owners who may have trouble securing funding elsewhere. Entrepreneurs with less-than-perfect credit or just one year in business could qualify for a business loan or merchant cash advance from National Funding. And business owners with as few as six months in business could be eligible for equipment financing. National Funding serves businesses in a range of industries, specializing in specific areas that may match your small business.

Although National Funding does not disclose many details online, such as interest rates and certain credit requirements, the application is easy to complete. When choosing business financing, speed is likely an important factor. National Funding could help you get money for your business quickly.

LendingTree — which owns MagnifyMoney — may be a good place to start as well since you could review and compare multiple business lenders at once.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

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