NewLogic Business Loans Offers Mini-Payment Financing
Capital Access Network announced that it will make loans available to small
to midsize businesses through its subsidiary, NewLogic Business Loans. NewLogic
will provide loans to restaurants, service practices and retail businesses.
Loans will be offered with a preset monthly payment amount and fixed maturity
date, but with unique features.
Qualified borrowers can choose between payment plans: either a structure with flexible, daily payment amounts designed to help SMBs better manage the ebbs and flows of payment card sales, or one with fixed payment amounts designed for those who prefer fixed payments. NewLogic said it will employ CAN FinTech Group's Daily Remittance Platform (DRP) to handle its transactions.
DRP relies more heavily on recent card sales in its approval process, and the platform also enables the integration of processing and the provision of capital. The "Mini-Payment" feature of NewLogic loans is designed to help SMB cash flow by creating smaller, more frequent payments instead of one lump sum monthly payment. SMBs can choose one of two "Mini-Payment" plans.
The Processor Powered Payment Plan allows SMBs to make loan payments through their credit card processors in amounts that vary with their card sales volumes, providing an option to owners who are uncomfortable with a fixed, daily payment amount. The Weekday Fixed Payment Plan permits SMBs to make automatic payments with fixed amounts each weekday through the Automated Clearing House system, providing an option to owners who prefer the consistency of preset, daily payment amounts.
Another feature NewLogic is touting is the quick turnaround on loan approval decisions. The company said applications will be evaluated in hours rather than weeks. Plus, the approval decision is primarily based on the history and performance of the business, rather than the business owner's personal credit.
According to recent statistics from the Small Business Administration, access to small business loans continues to be a challenge. The organization said its lending programs are running out of money as stimulus cash dries up. Federal Reserve Chairman Ben Bernanke, in his testimony to Congress in July 2010, also noted a drop in lending to small businesses, citing that loans have declined from more than $710 billion in the second quarter of 2008 to $670 billion in the first quarter of 2010.
"As recent news reports have indicated, working capital sources have decreased and businesses are scrambling. NewLogic delivers what small and midsized businesses need-more payment flexibility and faster decisions," said Glenn Goldman, CEO of Capital Access Network, parent company of NewLogic. "Through Capital Access Network and our FinTech Group, NewLogic has access to an extensive database and state-of-the-art modeling, scoring and analytic capabilities, so we can underwrite small businesses that banks typically avoid."