NewCo Capital Group Reviews - Financial Lender Pros & Cons

sarah-klein writer
By Sarah Klein
Updated September 9, 2020
Editor's Rating
Best for Challenged Credits
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NewCo Capital Group is a relatively new lender offering merchant cash advances (MCAs) to small businesses with funding amounts ranging from $10,000 to $350,000. Unlike other lenders, NewCo offers stacked loans up to the fourth position. This means that even if a business is already actively paying back three other loans they will be considered for an advance. MCAs are repaid as a percentage of future earnings, so even applicants with poor credit may be eligible for funding. NewCo offers daily and weekly payment options.

Types of loans
Merchant cash advance (MCA)
Loan amounts
$10,000 to $350,000
Terms of payment
4 to 9 months
  • Accepts applicant with less than perfect credit score
  • Large financing amounts
  • Fast and easy application process
  • Small business loan interest rates can be high
  • Additional fees on business loans
  • Only short-term business loans available

Company Profile

NewCo Capital Group offers larger loan amounts, fast approvals, and early renewal options, making this lender a good option for businesses needing short term access to capital. Led by seasoned industry leaders, NewCo gives merchants that may not qualify with other lenders or for bank loans the cash needed to fund business related expenses.

Credit Policy

In order to qualify for an MCA from NewCo Capital Group, businesses must meet some basic criteria. Since MCAs are paid back from future earnings, applicants will have to show monthly revenue exceeding $40,000. In addition to this, applicants must have a minimum FICO of 550, so even merchants with less than stellar credit profiles can get the financing they need. NewCo accesses credit scores with a soft check. NewCo requires a minimum of 4 business deposits, and no more than 5 days ending with negative balances in any given month.


This lender offers fairly standard financing options and eligibility criteria but stands out in flexible renewals. If the borrowing business’ revenue increases over the course of the loan and the finances are healthy, they will be able to renew the advance before paying back 50% of the initial amount.

Cautionary Industries

NewCo is inclusive of most industries when it comes to eligibility, but there are types of businesses that are considered too risky. For applicants operating in these sectors, other lenders or banks may be better options for financing.

Businesses in the following industries are excluded from NewCo’s financial services:

Target Market

NewCo Capital Group offers merchant cash advances to businesses in several core industries:


Businesses in this sector can face unpredictable conditions and unstable cash flow. A cash advance can buffer these fluctuations or provide capital for business expenses.


Machinery is a very expensive necessary investment for any construction business. Merchant cash advances provide financing when it's needed to be paid back from future revenue, making this a good option for machinery and equipment financing.


Stocking up on inventory, moving locations, or scaling production are common reasons why retailers might need some extra money quickly.


From opening a new location to purchasing equipment, restaurant businesses frequently require working capital, but revenue can be inconsistent. A short term cash advance can offer a solution.


Businesses in this sector often require financing to provide a short term bridge for large expenses or to maintain cash flow during a temporary downswing.

Other Industries:

Term Length

The term lengths offered by NewCo Capital Group are very short, similar to most lenders in this vertical. Ranging from just 4-9 months, applicants needing a longer time frame to repay credit may consider an alternative.

What’s Required to Apply

In order to complete the application for a merchant cash advance from NewCo, businesses will need to supply three months of recent bank statements. In addition to bank statements, borrowers must provide current and past month to date results.This lets NewCo verify that the applicant’s monthly revenue meets the minimum threshold and that this financial performance will remain steady or improve over the duration of the repayment term.

The lender will also perform a soft credit pull to check the applicant’s business and personal credit health.

The application will ask for the following information:

Underwriting lines

Interest Rates

Unlike standard loans, merchant cash advances aren’t repaid as a combination of principal and interest. Instead, interest, so to speak, is charged as a decimal multiplier of the total advance amount. This factor rate determines the total amount borrowers will repay. For an estimate of what a cash advance will cost in total, multiply the amount borrowed by the buy rate. NewCo generally offers buy rates between 1.24 and 1.31.


NewCo’s policy on stacking loans is one of the most flexible in the business. This lender will offer financing up to and beyond the 4th position, so for businesses carrying multiple active loans, NewCo is a good option. Stacked loans can sometimes come with higher buy rates and additional fees, but for businesses anticipating an increase in cash flow it might be worth it to finance now and pay it off after a short period of time.

Documentation Fees

Filing and processing applications is often attached to a fee. At NewCo, this fee varies from deal to deal and is generally contingent on the size of the advance. Estimate that the documentation fees will amount to 2.5% of the loan amount.

Origination Fees

Like other fees, origination fees are calculated as a percentage of the financing amount. When borrowing from NewCo, expect to pay around 2.2475% to cover the cost of issuing a cash advance.

Renewal Policy

Most businesses that have repaid a net 50% amount of the original advance can apply to renew the loan. The lender will evaluate the applicant’s financial health to determine what the terms of the renewed cash advance will be.

Interest Forgiveness

If the merchant decides to pay back the cash advance before the end of the set term, they will be eligible for some form of interest forgiveness. Depending on the specific circumstances, interest forgiveness on early repayment can be between 1 and 10% - not sure I understood this correctly.

Loan Use

Once financing is approved, the only requirement stipulated on the money’s use is that it be for business expenses. Some examples of business-related expenses that merchant cash advances can cover are:

Online Reputation

Since NewCo only launched in April 2020, the company doesn’t yet have an online presence. However, NewCo is led by seasoned industry experts and appears to be a trustworthy lender.

Licenses & Accreditations

NewCo Capital Group holds no current licenses or accreditations.

Company Contacts Details

Phone: 212-999-4500


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