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.
Loan type |
Working capital loan |
Term length |
3 - 36 months |
Repayment period |
Monthly |
APR range |
Not disclosed |
Min - Max amount |
Not disclosed |
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.
Loan type |
Micro working capital loan |
Term length |
3 - 36 months |
Repayment period |
Monthly |
APR range |
Not disclosed |
Min - Max amount |
Maximum of $20,000 |
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.
Loan type |
Equipment financing |
Term length |
24 - 48 months |
Repayment period |
Monthly |
APR range |
Not disclosed |
Min - Max amount |
$10,000 - $5 million |
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.
Loan type |
Line of credit |
Term length |
Not disclosed |
Repayment period |
Not disclosed |
APR range |
From 7.99% |
Min - Max amount |
Up to $300,000 |
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.
Loan type |
Term loan |
Term length |
12 - 48 months |
Repayment period |
Weekly, bi-weekly and monthly |
APR range |
From 6.49% |
Min - Max amount |
$150,000 - $500,000 |
Micro Term Loan
Again, much like a term loan only used to fund much smaller projects over a shorter time frame.
Loan type |
Micro term loan |
Term length |
12 - 36 months |
Repayment period |
Weekly or monthly |
APR range |
From 8.99% |
Min - Max amount |
$20,000 - $150,000 |
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.
Loan type |
Next - 5 term loan |
Term length |
24 - 120 months |
Repayment period |
Not disclosed |
APR range |
From 14.90% |
Min - Max amount |
Four times monthly income, up to $75,000 |
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.
Loan type |
Inventory loan |
Term length |
Not disclosed |
Repayment period |
Not disclosed |
APR range |
Not disclosed |
Min - Max amount |
Not disclosed |
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.
Loan type |
Consolidation loan |
Term length |
Not disclosed |
Repayment period |
Not disclosed |
APR range |
Not disclosed |
Min - Max amount |
Not disclosed |
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.
Loan type |
Hybrid loan |
Term length |
6 - 24 months |
Repayment period |
Daily, weekly or monthly |
APR range |
Factor points per month between 1.09% and 3.5% |
Min - Max amount |
Up to $250,000 |
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
Criteria |
Working capital loan |
Minimum credit score |
Not disclosed |
Minimum annual revenue |
$84,000 |
Minimum time in business |
Three months |
Micro Working Capital
Criteria |
Micro working capital loan |
Minimum credit score |
Not disclosed |
Minimum annual revenue |
Not disclosed |
Minimum time in business |
Three months |
Equipment Financing
Criteria |
Equipment financing |
Minimum credit score |
600 |
Minimum annual revenue |
Not disclosed |
Minimum time in business |
Varies for tiered offering |
Line of Credit
Criteria |
Line of credit |
Minimum credit score |
640 |
Minimum annual revenue |
$180,000 |
Minimum time in business |
12 months |
Term Loan
Criteria |
Term loan |
Minimum credit score |
650 |
Minimum annual revenue |
$240,000 |
Minimum time in business |
24 months |
Micro Term Loan
Criteria |
Micro term loan |
Minimum credit score |
600 |
Minimum annual revenue |
$240,000 |
Minimum time in business |
12 months |
Next - 5 Term Loan
Criteria |
Next - 5 term loan |
Minimum credit score |
500 |
Minimum annual revenue |
Not disclosed |
Minimum time in business |
3 months |
Inventory Loan
Criteria |
Inventory loan |
Minimum credit score |
600 |
Minimum annual revenue |
$180,000 |
Minimum time in business |
12 months |
Consolidation Loan
Criteria |
Consolidation loan |
Minimum credit score |
Not disclosed |
Minimum annual revenue |
Not disclosed |
Minimum time in business |
Not disclosed |
Hybrid Loan
Criteria |
Hybrid loan |
Minimum credit score |
600 |
Minimum annual revenue |
$120,000 |
Minimum time in business |
One year |
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.
Positive Reviews |
Negative Reviews |
Consistently good customer service |
N/A |
Fast funding process |
N/A |
Reasonable rates |
N/A |
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.