Next Financing Review: Find the Capital to Grow Your Venture

Next Financing is a relatively new entrant to the world of alternate business financing and operates as a loan connection service. It’s currently partnered with 17 lenders across the US, but this number is growing all of the time. Despite having a smaller pool of providers than other platforms, you’ll actually find quite competitive rates and terms here, as well as a wide range of different loan types. 

What Is Next Financing?

Next Financing offers borrowers a choice of 10 different types of business lending, as well as a range of personal loan options. After providing a number of personal and business details you’ll be matched with one of the platform’s partner lenders. Those with credit scores of 500 or above are welcome, making it a good option for anyone that’s been rejected by traditional lenders. 

Advantages and Disadvantages of a Next Financing Business Loans

Next Financing Advantages

• Multiple lenders - The 17 lenders partnered with Next offer a huge range of different loan types and eligibility criteria, which increases your likelihood of being accepted
• Variable rates and terms - Borrowers are offered a lot of flexibility here and can borrow as much or as little as they need. Whether that’s a long-term equipment loan, or short-term emergency funding, Next has you covered
• Next-day funding - In the majority of applications you’ll be able to access your funds the very next day
• Bad credit welcome - While many loans require a credit score of at least 600, there are options available for those with scores of 500 and above

Next Financing Disadvantages

• Potentially high fees - On top of an administration fee charged by Next, you may be subject to steep fees from your chosen lender
• Not as large as other connection services - Other loan marketplaces have dozens of partner lenders to choose from while Next only offers 17 currently. However, we expect this number to grow in the future

Next Financing Loan Features

We’re surprised at how varied the features are with Next Financing business loans. The platform has managed to pack in a lot of different loans and offers from a pool of just 17 lenders, and there’s a good chance you’ll find the flexible type of funding you’re looking for. Rates as low as 6.49% can be found for those with good credit, and borrowing limits are quite generous. 

Working Capital Loan

This type of funding is used to finance the everyday operations of your business. Usually to cover expenses like staff costs and inventory purchases. It’s not intended to be a long-term solution and is meant to cover short-term funding gaps.  

Micro Working Capital Loan

Like a working capital loan, but much smaller. It’s a good choice if you have an unexpected expense to cover like machinery repair. 

Equipment Financing

If you need to purchase a large piece of kit for your business we’d recommend opting for an equipment loan. You’ll be able to get lower rates by using the asset itself as collateral.

Line of Credit

Operating like a credit card for your business, but with much higher borrowing limits, a line of credit affords you a lot of flexibility. You’ll only ever pay interest on the money you withdraw plus a small monthly fee to maintain the account. 

Term Loan

A fairly standard type of borrowing, and the one most similar to a traditional bank loan. Usually intended for larger projects, it tends to have a higher borrowing minimum than other loans. 

Micro Term Loan

Again, much like a term loan only used to fund much smaller projects over a shorter time frame.

Next Financing - 5 Term Loan

This is a special type of funding only offered by Next’s partner lenders. It refers to the five key features of the loan; term length, simple interest, monthly payments, no prepayment penalty and next-day funding. Users can borrow up to four times the gross monthly income of their business.

Inventory Loan

This isn’t a common type of lending, so it’s nice to see it offered as an alternative at Next. You’ll essentially be borrowing against your inventory and is intended for businesses that have excess stock due to seasonal variations. This is usually just a short-term type of borrowing since your stock is being used as collateral. 

Consolidation Loan

If you’ve been struggling with multiple business loans and need to consolidate them into one easy payment, you can do so with a Next consolidation loan. Unfortunately, the platform can’t provide any details on rates and terms beforehand as this will be entirely dependent on the arrangements you have with your current lenders. 

Hybrid Loan

Another interesting option, this loan works like a combination of a line of credit and a term loan. You’ll have a pot to draw from, but repayment terms are more regular and interest rates a little cheaper. 

Next Financing Interest Rates and Fees

With more than 17 lenders to choose from and 10 loan types on offer, there are hundreds of possible Next small business loan combinations. This means that the platform doesn’t actually provide any detailed information on rates and fees before you apply. This will ultimately depend on your chosen lender, with each applying different criteria.

That being said, Next states that it may take an admin fee of around 2% - 5% to cover sales rep charges. You’ll never be charged prepayment fees on any loans and you may even receive discounts to rates for paying early too. 

How to Qualify for a Next Financing Loan?

Qualification criteria vary considerably between each loan type but applications are usually accepted from anyone with a minimum credit score of 500, and income requirements aren’t too onerous, sitting at around $7,000 per month.

Working Capital Loan

Micro Working Capital

Equipment Financing

Line of Credit

Term Loan

Micro Term Loan

Next - 5 Term Loan

Inventory Loan

Consolidation Loan

Hybrid Loan

The Next Financing Application Process?

The application process is completed entirely online and couldn’t be more straightforward. The initial form only takes around 10 minutes to complete and you’ll be presented with multiple offers near-instantly. In some cases, you can be approved for Next funding on the same day you apply and receive your deposit the next business day. 

Document requirements do vary slightly between the different loan types, but you’ll be asked to provide the following as standard:

• Three to six months of business bank statements
• Your most recent business tax return
• Your most recent personal tax return
• Personal ID

How Does Next Financing Determine the Loan Amount?

As a loan connection service, Next doesn’t share the methodology used by each of its partner lenders. If you’d like to know more you’ll need to get in touch with your chosen platform directly. 

Unlike most other loan connection services, Next Financing offers a range of very impressive freebies and sign-up incentives. Recent campaigns have seen borrowers rewarded with luxury weekend getaways, trips to Disney Land and a range of other vacation options. Destinations depend on what offers are active at any given time and are often based on how much you borrow. 

Customer Support

You can get in touch with Next customer service via a helpline and by email. The service agents can answer any questions you might have about the application process and help you decide what type of funding might be best for you. However, once you’ve accepted an offer you’ll need to direct any questions to your chosen lender as Next won’t be able to deal with loan-specific problems. 

Next Financing Loan Reviews

As a relatively new company, Next hasn’t had the same sort of exposure as its larger rivals. As such, it’s quite hard to find a lot of detailed customer reviews. The platform doesn’t yet have a presence on large aggregate review sites like Trustpilot and Sitejabber, and only one customer review on its Facebook page.

There are 11 borrowers that have left feedback over on HardMoneyHome and Next Financing is rated 5 out of 5 stars. Users have noted they were happy with the reasonable rates on offer, consistently good customer service and fast funding process. We weren’t able to find any negative feedback, although we expect a more representative set of reviews to grow as the company becomes more well-known. 

Final Thoughts

Despite being a new entrant to the business lending industry, we’ve been consistently impressed with the types of products Next Financing is able to offer. Its eclectic mix of loan types, an extensive list of rates and terms and friendly customer service all make for a very attractive package.

However, there are some that might want to wait until the platform becomes a little bit more established, or would like to have more information on the partner lenders before they apply. Hopefully, this is something we see more of as the platform grows.