Newity Raises $11 Million to Transform Small Business Lending with AI-Driven Loan Solutions

Newity, a fintech startup focused on revolutionising small and medium-sized business (SMB) financing, has raised $11 million in a new funding round to scale its AI-powered business loans platform. Newity’s mission is to fill a persistent gap in business lending — where traditional banks often struggle with lengthy underwriting, opaque criteria and limited flexibility — by leveraging machine learning models, alternative data signals and real-time decisioning to deliver faster, fairer and more transparent loan outcomes.

The fresh capital will be used to expand Newity’s product suite, deepen partnerships with banks and fintech integrators, accelerate hiring across technology and risk teams, and support broader market expansion. Positioned at the intersection of AI, credit infrastructure and embedded finance, Newity’s platform aims to streamline everything from application through underwriting, approval and ongoing performance monitoring — helping small businesses access the working capital they need without the friction typical of legacy systems.

Key Highlights

• $11 M raised: Newity secures $11 million in funding to scale its business lending platform.
• AI-driven lending: Uses machine learning and alternative data to underwrite small business loans.
• Faster access to credit: Aims to reduce time from application to decision for SMB borrowers.
• Investors: Backed by a lead investor and strategic partners focused on fintech and SME finance.
• Product roadmap: Funding will accelerate product development, partnerships and go-to-market efforts.
• Market focus: Targeting underserved small and medium businesses seeking transparent loan solutions.

The Business Loans Challenge

Small and medium enterprises (SMEs) — long recognised as economic growth engines — often face credit access barriers. Traditional lenders rely on legacy underwriting processes that prioritise historical financials, collateral and rigid criteria, which can exclude newer, less traditional but creditworthy businesses. Additionally, lengthy paperwork and slow turnaround times can constrain cash flow, limiting business agility.

Newity’s approach — powered by data science and AI — seeks to address these challenges by:

• Incorporating alternative signals such as real-time cash flow, payment patterns and business activity data
• Automating underwriting workflows to shorten decision timeframes
• Embedding transparency in pricing and credit decisions
• Designing flexible repayment structures aligned with business performance

How Newity’s Platform Works

1. AI-Enhanced Underwriting

Newity leverages machine learning models trained on diverse credit indicators to predict creditworthiness more dynamically and inclusively than traditional credit score-based models. This approach can identify creditworthy borrowers that might otherwise be overlooked due to limited historical financials or non-standard profiles.

2. Alternative Data Insights

By pulling in alternative data sources — such as bank transactions, invoicing activity, e-commerce performance and even social signals — Newity enriches credit evaluations with broader context. This helps mitigate risk while expanding access for businesses that operate digitally or have irregular but valid cash flows.

3. API-First Lending Workflows

Newity offers APIs that enable banks, fintechs and platforms to embed business lending directly into existing customer experiences, eliminating the need for borrowers to visit multiple systems or re-enter information. This embedded finance strategy can help partners increase conversion and retention.

Why This Matters

1. Addressing the SMB Credit Gap

Across markets globally, small businesses consistently report difficulty in securing affordable credit, especially without long financial histories or traditional collateral. Newity’s AI-driven approach aims to reduce this gap by broadening the definition of creditworthiness and delivering decisions quickly — often in hours instead of weeks.

2. Supporting Growth and Resilience

Access to timely working capital can have outsized impacts on business growth, hiring, inventory management and resilience during economic cycles. Faster, more transparent loans help SMBs invest in opportunity rather than being bottlenecked by administrative delays or opaque credit scoring.

3. Partner-Focused Distribution

Newity’s API-first architecture helps banks and platforms embed lending services within their products — deepening customer engagement while extending credit capabilities without significant internal engineering overhead. This partnership-centric model aligns with broader trends in embedded finance and credit as a service.

Market and Competitive Context

The business lending sphere has attracted significant fintech innovation — from online lenders and marketplace lenders to neo-banks and platform-embedded credit — but many still rely on legacy risk frameworks or siloed workflows. Newity’s focus on AI-augmented decisioning, alternative data, and seamless API integrations positions it alongside newer entrants such as Capchase, Pipe, Clearco, and Upgrade, while also addressing institutional needs for credit governance and auditability.

Investor backing by established fintech-focused funds signals confidence in the sector’s growth potential, especially as technology reduces credit delivery cost and expands reach beyond traditional bank footprints.

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