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Newtek business loans review

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Term loans, lines of credit and real estate loans for established small businesses.’s rating: 3.83 / 5.0


You might have seen ads for Newtek’s business solutions while watching the nightly news. This direct lender has funded more than $2 billion in long-term business loans since it opened its doors in 1998.


Min. Amount


Max. Amount


Product NameNewtek business loans
Min. Amount$10,000
Max. Amount$10,000,000
Loan Term1 to 25 years
RequirementsCredit score of at least 600

Am I eligible?

You and your business must meet the following requirements for a Newtek business loan:

  • Personal credit score of 600+. Lower credit scores are required to provide collateral to secure a loan.
  • At least two years of tax returns. It’s possible that Newtek might ask to see at three or more years of tax returns, depending on your business history and creditworthiness.
  • Based in the US. Newtek provides loans in all 50 states but not abroad.
  • Cash flow to repay the loan. How much cash flow you need depends on how much your business wants to borrow.

To qualify for a business line of credit, your business must put up either accounts receivable or inventory as collateral. For a term loan, your business must put up at least 10% of the amount you’re borrowing as collateral.

What are Newtek business loans?

Newtek claims to offer services to small businesses that banks simply can’t or aren’t willing to. If you’re looking to invest in real estate, you might qualify for a commercial loan to buy property or refinance an existing loan. Newtek also offers financing backed by the SBA.

Business term loans

Newtek’s term loans are designed to cover large one-time expenses like expanding or buying a new business, buying inventory, covering marketing costs or opening a new location. They start at $10,000 and go as high as $10,000,000. Newtek asks for a 10% deposit on its term loans — and, if your credit score just makes the mark, collateral to match the loan amount. Your business can take between seven and 25 years to repay what you borrow.

Business lines of credit

If your business has trouble qualifying for a business loan, Newtek’s secured lines of credit might be a better option. The underwriting process is more forgiving, and it takes less time to access your funds than a term loan.

Lines of credit require your business to put its nonperishable inventory or accounts receivable up for collateral. Lines backed by accounts receivable act like a type of revolving invoice financing.

Credit limits range from $50,000 to $1.5 million — or up to 80% of the value of your accounts receivable. Credit lines backed by inventory range from $50,000 to $500,000 — or 50% of your inventory’s value. Both come with renewable one-year terms.

Commercial real estate loans

Commercial real estate loans range from $125,000 to $10 million to help you buy or refinance real estate for your business. Newtek claims it requires as little as 10% borrower equity injection — another way of saying that you must have at least 10% to put toward the loan as equity, whether property equity or other accepted capital.

What makes Newtek business loans unique?

Newtek has at least a decade on many other online lenders — and it doesn’t just offer business loans. Calling itself a “solutions company,” it’s set up as a one-stop shop for a wide range of business needs, from providing HR professionals to supplying point-of-sale terminals.

Customer service is its strong suit: It’s one of the few lenders that offers 24/7 customer support, and you’re assigned a personal account manager that’s familiar with your case to provide direct assistance.

What are the benefits of Newtek business loans?

  • Get help anytime. Newtek’s 24/7customer service lines are open even at 1 a.m. on Christmas Day.
  • Offers large loans. Term loans are available up to $10 million for eligible businesses.
  • Hands-on application. A dedicated account manager helps you through the process, answering any questions along the way.
  • Competitive rates. APRs for both lines of credit and term loans start at a variable rate Starting at 6% .

What to watch out for

  • Long turnaround. Business loans take weeks from start to finish — sometimes as long as a couple months. You’ll want to look elsewhere for a fast business loan.
  • Limited info before you apply. Newtek’s support team provides scant details about what you can expect before you complete the application online.
  • Required deposit for term loans. You must put down 10% of what you borrow as a deposit.
  • Might require collateral. Business owners that just meet Newtek’s credit cutoff might need to put up collateral worth the value of the loan — say, a car, real estate or another personal asset. Consider other providers if you want an unsecured business loan.

Compare more business loan providers

Updated March 30th, 2020
Name Product Filter Values Loan amount Starting APR Requirements
First Down Funding business loans
$1,000 – $300,000
Varies by type of loan
Alternative financing up to $300K with highly competitive rates.
$500 – $5,000,000
Operate a business in the US or Canada, have a business bank account and have a personal credit score of 675+.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$5,000 – $500,000
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
Kabbage Small Business Line of Credit
$500 – $250,000
1+ years in business, $100,000+ annual revenue or $4,200+ monthly revenue over last 3 months
A simple, convenient online application could securely get the funds you need to grow your business.
$30,000 – $5,000,000
650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
Get funding for your small business with a government-backed loan and extended repayment terms.

Compare up to 4 providers

What do borrowers say about Newtek?

Virtually nothing — surprising for a business that’s been around for so long. It earns an A+ from the Better Business Bureau (BBB) as of May 2018, though it has no customer reviews and only one complaint about its merchant services. It has no Trustpilot page and no mentions on forums like Reddit.

Its employees give it a poor 2.2 star rating on Glassdoor, indicating that the people you’ll be dealing with might not be happy with their jobs. Whether employee satisfaction affects customer’s experience is difficult to tell, however, with no customer reviews.

How do I apply?

You can most easily apply for a Newtek loan online:

  1. Go to Newtek’s site, hover over Solutions and select the type of loan you’d like to apply for.
  2. Scroll until you see a Get Prequalified button. Click it.
  3. Complete your contact information and required company basics before clicking Submit.
  4. Wait 24 to 48 hours for a loan specialist to get in touch to find out loan amounts and rates you prequalify for.

Your loan specialist guides you through the rest of the application process, including submitting documents and providing additional information about your business. Lines of credit typically take less time — two to three weeks — while term loans can take at least a month from start to finish.

What documents do I need to apply?

Documentation varies depending on the type of loan you’re applying for and your personal and business finances.

Newtek doesn’t provide a general documentation list, but lenders typically ask to see:

  • Business tax returns. Newtek might ask to see between two or three years of past tax returns.
  • Business bank statements. Lenders typically use bank statements to get a sense of your business’s current cash flow.
  • Financial projections. Some lenders ask to see your whole business plan, but many ask to see financial projections to get an idea of your business’s future earnings.
  • Proof of collateral. If your loan requires you to put a personal asset up for collateral, you may need to provide documentation showing you’re the owner and it’s not tied up in any other loans.

I got a business loan through Newtek. Now what?

It’s time to start repaying your loan. Go over your repayment options with your account manager to find on that meets your business’s needs.

If it’s an option, consider signing up for automatic repayments. That way, you won’t have to remember to make monthly payments.

Whichever method of repayment you choose, keep an eye on your business’s bank account and your loan balance. If you notice anything off, reach out to your account manager or call Newtek’s general customer service line at 855-763-9835.

Bottom line

Well-established businesses that need a large amount of financing — and aren’t on a tight deadline — might benefit from Newtek’s business loans. Its low credit requirements open it up to businesses owners who might have difficulty qualifying at a bank, though you likely won’t qualify for Newtek’s lowest rates.

If you’re not interested putting up collateral or a down payment, you might want to look elsewhere. Read our comprehensive guide to business loans to weigh the benefits of other lenders and learn more about the process.

Frequently asked questions

Business loan ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

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  1. Default Gravatar
    August 28, 2019

    Do you operate in Canada?

    • Avatarfinder Customer Care
      August 29, 2019

      Hi Peter,

      Thank you for your comment.

      Newtek is not available in Canada, unfortunately.


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