Small businesses need capital to maintain operations and explore new growth opportunities. While it’s ideal to get this capital from cash flow, not every business has that type of flexibility. Early-stage startups often need to borrow money to make critical purchases before revenue becomes consistent. Even established businesses need to borrow money from time to time. Whether you are just getting started or need extra capital for seasonal fluctuations, Newity can help. The small business lender has helped over 120,000 small business owners access over $11.4 billion in capital.
What is Newity?
Newity is a small business lender that makes capital more accessible to small business owners. The company offers several financial products for businesses that need funds. Newity was founded in 2020 but has already made great strides in the small business lending industry, based on the number of people the company has helped.
How Does Newity Work?
Newity offers several loans and business services. You can select the type of loan you want and use the loan estimator. This estimator gives business owners an idea of how much capital they can get based on their annual revenue. You will have to create a Newity account to apply for a small business loan.
What Services Does Newity Provide?
Newity offers several financial products for business owners who need extra capital.
SBA 7(a)
These government-backed loans have lengthy application processes but can offer the most competitive terms. If you take out an SBA 7(a) loan with Newity, you can borrow up to $250,000.
ERC Fast Track
The ERC Fast Track allows businesses to receive cash back for retaining employees. This government program is a tax credit that can reward you for up to $26,000 per employee. Tax credits are much better than deductibles, meaning you can save a lot more money. You can create an account with Newity and apply for this financial product to discover how much you can save.
ERC Advance
This financial product lets you receive your ERC payment before the IRS gives you a refund. You can get your money in as little as five days after getting approved. To qualify, you need a 700+ FICO score, less than $200,000 in credits in a single quarter, an active business that is in good standing with the Secretary of State, and your business must have been in operation before 2019.
What Other Business Services Does Newity Have?
Newity doesn’t only offer loans. The company has several business services that can make it an all-in-one resource for your needs.
Bookkeeping and Tax
Newity partners with Xendoo to give you the complete package that can fulfill all of your accounting needs. You will receive tax consulting, monthly financial reports, tax preparation help, weekly bookkeeping, a dedicated accountant, and more.
Business Consulting
Newity partners with Cultivate Advisors to offer a free two-hour consult that has no obligation for Newity members. You can receive advice in the areas you want to master for your business.
Insurance Services
Newity partners with Mylo to make business insurance policies cheaper and more accessible. You can find the expected policies, such as workers’ comp and general liability insurance. However, you can also find more nuanced policies, such as cyber insurance and others.
Marketing Services
Newity partners with Breef to help business owners find the right marketing agency for their needs. Joining forces with an agency can make your marketing feel more seamless and generate better results.
What are the Pros and Cons of Newity?
Wondering if Newity is right for you? These are some of the pros and cons to consider.
Pros
- Access to SBA loans. These loans have some of the most competitive interest rates and terms.
- The ability to capitalize on ERC. The IRS uses these tax credits to incentive companies to retain employees.
- Get compensated for retaining employees before the IRS sends you a refund.
- Various business services and partnerships make Newity more enticing.
Cons
- Limited loan options
- You need a good credit score to qualify for Newity’s financial products
- SBA 7(a) loan has a maximum amount of $250,000. You can borrow more money from other online lenders.
What are the Requirements to be Eligible for Newity?
Newity posts the requirements for each of its loans. You will need a 700+ FICO credit score to capitalize on all of their offerings. Newity will also check your annual revenue, and an ERC advance requires that you have been in business before 2019.
What Makes Newity Different?
Newity has high credit score requirements but offers generous interest rates and terms if you get one of the company’s financial products. Newity’s ERC products can help you get tax credits and receive funding before the IRS sends you money. The company has only been around since 2020, but it has quickly established itself and helped over 120,000 small business owners.
Is Newity Right for Your Business?
Newity can be right for your business if you have a good credit score. The lender doesn’t have financial products that cater to people with bad credit. However, you will end up with some of the lowest interest rates and best terms if you get a loan with Newity. If you have retained employees, you may want to reach out to Newity about its ERC products. You can receive up to $26,000 per retained employee. If you don’t have enough time to wait for the IRS to send a refund, you can access your funds early with Newity’s ERC Advance.
How to Get Started with Newity
You can get started with Newity by clicking on the “Sign Up” button on its website. You will then be prompted to enter an email address and password. After entering your information, you will receive a verification email and can then get started.
