News from the Wire

NewLogic hits $100 million milestone

Tuesday, December 20, 2011 — 11:37:13 (EST)

Boston, Dec. 20, 2011 -- NewLogic Business Loans, Inc., an innovative loan provider to small and mid-sized businesses, today announces that in excess of $100 million in business loans have been provided to Main Street businesses. After only 18 months since its April 2010 launch, NewLogic is now originating approximately $10 million per month in new loans. The company believes the $10 million per month run rate makes it the second largest provider of “daily remittance” working capital to U.S. small businesses, second only to sister company AdvanceMe, Inc., which provides Merchant Cash Advances. Both companies are subsidiaries of Capital Access Network, Inc. (CAN), founded in 1998 and supported with substantial lines of capital from major financial institutions.

Unique Solution Quickly Adopted by Small Businesses

NewLogic bridges the gap between alternative funding products and bank financing, integrating the speed and flexibility of non-traditional working capital products like Merchant Cash Advances but with commercial loan structures, including fixed payment amounts and a maturity date. The “daily remittance” feature of this loan product minimizes the impact to the business’ cash flow; automatic, smaller repayments are made on a daily basis versus the larger monthly payment typical of other business loan products.

NewLogic’s growth is the result of a substantial and continued investment in the underlying Daily Remittance Platform™ (DRP) created by parent company, Capital Access Network. DRP moves beyond simple credit score-based underwriting by accessing the actual daily revenue information of the small business. Together with a vast array of unique, proprietary data sets and sources, DRP uses unparalleled insight to risk score and risk manage individual business loans, leases, Merchant Cash Advances and other capital products. Virtually no other type of finance provider incorporates this behavioral data into their processes. Superior data combined with next generation FinTech systems enable agile risk evaluation and solution delivery across a range of business types, sizes, and terms. NewLogic and other DRP users are empowered to deliver more capital to more businesses faster and with less risk as proven by NewLogic’s success despite today’s difficult economic environment.

“Traditional lenders such as banks have yet to harness the power of the daily cash flow behaviors of their small business customers and the wealth of small business and small business customer behavior data,” according to Glenn Goldman, CEO of CAN. “But we have been actively correlating many of these behaviors into more predictive risk profiles for years,” Goldman explains. “We believe DRP delivers a competitive advantage to users such as NewLogic and we are aggressively expanding the broad range of variables DRP uses to assess risk.”

Small businesses continue to be the backbone of the U.S. economy and job creation; however the Spring 2011 edition of the Capital Access Network Small Business Barometer shows that only 34 percent of small businesses obtained a collateral-based bank loan. More than one out of ten small businesses have turned to more innovative options than bank loans, including non-traditional loans, peer to peer lending, Merchant Cash Advances and factoring. Data from the Federal Reserve Bank of San Francisco notes that bank lending to small businesses continued to drop through the second quarter of 2011.[1].

“NewLogic’s success in reaching $100 million in loans so quickly demonstrates the small business market’s need for new working capital products that are tailored for their business operations, owner histories and needs,” according to Goldman. “The amount of transaction data CAN and its subsidiaries have amassed in 13 years of providing various finance products to 650+ SIC codes, from medical professionals and retailers to hotels, eateries and wholesalers, puts us in a unique position to serve small businesses and their ecosystems, whether traditional or emerging,” said Goldman.

Additional resources, including an online prequalification application, can be found on NewLogic’s website, www.NewLogicBusinessLoans.com, NewLogic Business Loans can also be found on Facebook at www.facebook.com/NewLogicBL or on Twitter at www.twitter.com/NewLogicBL .

About NewLogic Business Loans, Inc.

NewLogic Business Loans, Inc., a subsidiary of Capital Access Network, Inc. (CapitalAccessNetwork.com) and sister company of Merchant Cash Advance provider AdvanceMe, Inc. (AdvanceMe.com), offers innovative loans to small and mid-sized businesses desiring unique, flexible features including: application evaluation in hours rather than weeks and business-friendly approval decisions. Loans are structured with the intent of building long-term relationships, with terms that fit the needs of the entrepreneur and convenient online applications. That’s why it’s Smart Money for Small Business. For more information, please visit:NewLogicBusinessLoans.com.

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Source: Company press release.