Capital Access Network Increases Small Business Loan Availability
Capital Access Network (CAN) announced the increased availability of small business loans through its subsidiary, NewLogic Business Loans.
NewLogic is now able to provide access to an innovative loan product to small businesses in all 50 states.
Through a single application, businesses across the U.S. can be qualified for two different products: a business loan through NewLogic and a Merchant Cash Advance from NewLogic’s sister company, AdvanceMe.
These products provide businesses with access to the money they need in days versus weeks through a simple and painless application process.
The sales organizations that sell these working capital products will benefit from a simplified process, similar funding size ranges, and consistent pricing thresholds across all 50 states, enabling them to satisfy more customers and earn more revenue.
NewLogic provides access to an alternative business loan that integrates the speed, approval rates, and flexibility of non-traditional working capital products, but with commercial loan structures, including fixed payment amounts and a maturity date.
Unlike traditional loans, loans provided through NewLogic offer business owners the ability to make business-friendly “mini-payments” every weekday. Automatic, smaller repayments are made on a daily basis, instead of the larger once-monthly payment typical of other business loans.
NewLogic’s innovative approach provides access to loans with terms that meet the needs of underserved small businesses. Loans up to $150,000 per location and as long as 36 month terms are available for a broad range of businesses, including those whose owners have less than perfect credit.
Instead of focusing on personal credit scores, the history, sales performance, and cash flow of the business—which are truer indicators of its health—are used to determine eligibility.
The money can be deposited into the bank account of the approved business quickly, in as few as 24 hours, and can used for almost any business purpose.
“In the two years since NewLogic’s launch, the company has helped almost 4,000 small business customers access $200 million in working capital,” says Glenn Goldman, CEO of CAN. “NewLogic’s success in serving the small business community’s credit needs demonstrates the market’s desire for working capital products that are easy to access and tailored to business owners preferences.
“While traditional banks are still limiting access to capital to small businesses seeking loans, Capital Access Network is providing options,” he continues. “Through one application, businesses are considered for multiple innovative products. Businesses appreciate the ability to choose a product that fits their needs, especially since their options to date have been extremely limited.”
A survey of nearly 6,000 businesses by Pepperdine University and Dun & Bradstreet Credibility Corp. during the first quarter shows that nearly one-third of the participants said they plan to seek new financing in the next six months.
While 68 percent of survey respondents stated they would try to borrow capital from a bank, a survey taken in January 2012 shows that less than half (47 percent) of small business owners stated they had been successful in securing a bank loan during the previous six months.
“To fill the unmet needs of small businesses, we continue to develop strategic partnerships with market-leading organizations that see value in building customer relationships and additional revenue streams by providing their small business clients with access to the capital they need to manage their businesses and flourish,” Goldman says. “We look forward to serving even more salespeople and new partners, as well as those already in the CAN family, with this nationwide enhancement.”