What Chargeback Ratio Is and How to Calculate It

What Chargeback Ratio Is and How to Calculate It

Chargeback ratio is about the ratio between the overall transactions and the overall chargebacks you, as a merchant, have earned. How can you calculate this ratio? Where can you obtain a reliable and cheap payment gateway for your online transactions?

Understanding Chargeback Ratio

Chargebacks can create major headaches for businesses. Your business can lose not only profit but also merchandise because of chargebacks. Moreover, you’ll need to pay fees to your credit card processor and deal with costly disputes.

Did you know the majority of chargebacks happen because of fraudulent activities known as friendly fraud? In this case, a merchant can hardly figure out if a transaction is fraudulent until it’s too late.

Unfortunately, chargebacks are becoming more widespread. 30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of chargebacks are associated with purchases completed using a stolen credit card. Fraudulent chargebacks cause a lot of harm to businesses and can cost you much money to process and result in lost revenue.

Importantly, chargebacks and refunds aren’t the same thing as you might think. A refund is a transaction processed between the merchant and the customer. The customer and the merchant are in direct communication in this case. Refunds are issued based on the merchant’s terms and conditions. When the problem gets solved, money is returned without any harm to the business.

Be aware that the average chargeback to transaction ratio is 0.60{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} across all industries. Industries are doing their best to keep their chargeback ratio close to zero. Luckily, you can turn to a respectful payment services provider to protect your business from fraud and chargebacks. With a reputable payment processing company, you can get fast access to the most secure and cheapest payment gateway and merchant account for your eCommerce business.

How to Calculate Chargeback Ratio

To calculate your chargeback ratio, you need to divide the number of chargebacks in a given period by the number of transactions in the same period.

The bad news is that a higher level of chargebacks will put you under the high risk classification, thus creating challenges for your business. Thankfully, there are reputable high risk merchant services providers that you can work with to succeed.

What about keeping your chargeback ratio low? For this, you can use reliable fraud prevention solutions and evaluate every transaction for fraud. It’s also important to properly display the product descriptions on your website, making sure they aren’t different from the products you offer. Besides, your customers should be able to find your contact details with ease.

Additionally, you need to provide helpful, timely responses to your customers when they reach out to you. Finally, you should provide easy processes for faulty product returns, and your customers should know when to expect their refund.

Calculating Chargeback Ratio

To calculate your chargeback ratio, you need to divide the number of open chargebacks by the number of finalized transactions. Work with a reliable merchant services provider to protect your business against chargebacks.

Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.

Lifelong Skills Training and Education Center Available Soon for All Arkansas Students Thanks to Online School

Lifelong Skills Training and Education Center Available Soon for All Arkansas Students Thanks to Online School

Minor ROCK, Ark., February 24, 2022–(Small business WIRE)–Arkansas Virtual Academy (ARVA), a comprehensive-time online and blended public charter university serving K-12 students all through the condition, is beginning renovations on its freshly obtained headquarters in Downtown Minimal Rock. The new 50-thousand sq. foot office environment constructing will keep its corporate places of work but also act as residence base for blended in-particular person lessons, job training, a STEM lab, and even a 3-D printer.

Pupils throughout the point out will be invited for schooling and upskilling, can take their point out assessments, and have opportunities to meet up with with area organizations desperate to uncover, practice, and employ the service of new workforce in today’s speedily growing financial state. The setting up is expecting to be open up by January 2023.

“Certainly, we are a virtual university, but we want this to be a location wherever all Arkansas students can appear for coaching and tests, a risk-free location to do their schoolwork, and a area in which they can expand and learn new career techniques,” claimed Amy Johnson, head of college at ARVA. “By means of our community partnerships, we hope to give students what they have to have to be prosperous in the upcoming period of their lives.”

ARVA is at this time on the lookout for partners to assist form and practice the up coming era of Arkansas’ do the job force. Intrigued enterprises ought to contact Amy Johnson at amyjohnson@k12.com.

The making was secured working with federal ESSER resources furnished by the American Rescue Program passed by Congress in March 2021. ESSER funds are “presented to State educational organizations and college districts to assist safely and securely reopen and maintain the harmless operation of educational institutions and address the influence of the coronavirus pandemic on the Nation’s pupils.”

In addition, for family members searching to enroll in on line faculty, ARVA is now accepting enrollments for the 2022-2023 school 12 months. To understand far more and how to enroll, check out arva.k12.com, or obtain the Stride K12 cellular application for iOS and Android units – where by family members can enroll, prepare for the 1st day of faculty, and observe students’ academic progress through the university 12 months.

About Arkansas Virtual Academy

Arkansas Virtual Academy is a complete-time community charter school serving pupils in grades K by 12. As aspect of the Arkansas public school process, ARVA is tuition-totally free and gives family members the decision to accessibility the partaking curriculum and resources presented by Stride Inc. (NYSE: LRN). For a lot more info about ARVA, take a look at arva.k12.com.

Watch supply variation on businesswire.com: https://www.businesswire.com/information/household/20220224005059/en/

Contacts

Media
Ken Schwartz
Senior Manager, Communications
kschwartz@k12.com

I’m 64 and took out student loans to get an MBA, but no one will hire me, maybe because of my age. What should I do about my student loans?

I’m 64 and took out student loans to get an MBA, but no one will hire me, maybe because of my age. What should I do about my student loans?

Scholar Financial debt


Getty Pictures/iStockphoto

Question: I will need support with my scholar financial loan. I’m 64 yrs outdated and I graduated with my MBA in 2015, and however just cannot come across a task. I have been to quite a few interviews, but no 1 will employ the service of me possibly since of my age or for the reason that I experienced a felony when I was 27, even although it has due to the fact been discharged and cleared. What can I do?

Have a dilemma about having out of scholar personal loan or other credit card debt?
E-mail chill@marketwatch.com. 

Solution: The excellent information is that if you have federal scholar financial loans, you have a few possibilities. Even though your federal mortgage payments are very likely on pause through Could 1, 2022, when you have to commence repaying them, you’re going to want to make the payments manageable. So professionals advise contemplating an income-driven compensation system. “If your discretionary revenue is established to be $, your month to month payment could be set as minimal as $,” says Rebecca Safier, licensed pupil bank loan counselor and greater schooling finance qualified at Scholar Loan Hero.  (Take note that if you do have federal loans, refinancing is possible not a great solution since it will strip the loans of federal protections like cash flow-pushed compensation solutions.)

Not positive which income-primarily based system to opt for? “You can examine in excess of different earnings-driven designs to see which alternative would be ideal for you, or you can simply question your financial loan servicer to decide the 1 with the cheapest regular payment,” states Safir.

One more possibility is to ask for deferment or forbearance at the time the federal college student bank loan payment pause is up. Each plans allow you to pause your financial loan payments temporarily thanks to economical hardship or other qualifying good reasons, but observe that in most instances fascination will accrue on your loans. (Examine a lot more about deferment and forbearance in this article.) Though an cash flow-pushed reimbursement system is preferable, opting for deferment or forbearance will not negatively effect your credit score score. But execs say it is not a prolonged-phrase resolution and the accrual of interest can be burdensome.

Non-public scholar loans, sad to say, are not suitable for these federal courses, but your financial loan servicer may well be capable to operate with you to regulate your payments or even pause them briefly. “It’s value calling your servicer to go over your problem and see if they can aid. You may also discover refinancing your personal pupil financial loans, which could direct to a much better interest amount and new month to month conditions,” states Safier. (See the greatest student mortgage refinancing charges you can qualify for listed here.)

A person point to take into account is that if you pick a longer phrase, your monthly payments may well go down, but you will shell out far more in interest. “If you never currently have an earnings, though, you would probable require to implement with a cosigner to qualify,” says Safier.

Biden vows wider sanctions on Russia in effort to cut Moscow off from the global economy

Biden vows wider sanctions on Russia in effort to cut Moscow off from the global economy

President Joe Biden explained Thursday that the U.S. will introduce a new wave of sanctions from Russia in a broad effort and hard work to isolate Moscow from the worldwide overall economy.

The president mentioned that the totality of the penalties will target trillions in assets and incorporate precise measures against Russian elites and banks which include state-owned VTB Financial institution.

The White Property has also licensed extra troops to be stationed in Germany as NATO allies glimpse to bolster defenses in Europe, Biden stated.

“Right now, I’m authorizing added solid sanctions, and new limits on what can be exported to Russia,” Biden mentioned. “This is likely to impose a severe cost on the Russian overall economy each quickly and around time.”

“I just spoke with the G-7 leaders this early morning,” Biden mentioned Thursday afternoon. “And we are in whole and whole arrangement: We will limit Russia’s potential to do business in dollars, euros, lbs, and yen to be section of the global economic climate. We are going to restrict their potential to do that.”

Abide by our are living updates in this article.

The Treasury Office introduced a more-specific listing of the U.S. sanctions soon right after Biden’s speech. The department said that its limitations will greatly undercut the ability of Russian lending huge Sberbank and VTB Financial institution to work.

“On a each day foundation, Russian fiscal institutions conduct about $46 billion really worth of foreign exchange transactions globally, 80 percent of which are in U.S. dollars,” Treasury mentioned in a launch. ” The broad vast majority of people transactions will now be disrupted.”

It also reported it will goal families near to Russian President Vladimir Putin to set force on Moscow to conclusion its navy assault. People named in the listing include things like Putin ally and previous chief of staff members of the Presidential Executive Workplace Sergei Ivanov and his son. Igor Sechin, yet another of Putin’s closest allies and the CEO of Rosneft, a single of the globe’s greatest publicly traded oil organizations, is currently being targeted together with his son.

Prior to Biden remarks, leaders of the Team of Seven nations stated they “are appalled by and condemn” Russia’s armed service aggression in Ukraine and promised to impose “critical and coordinated economic and financial sanctions” from the Kremlin.

Like other environment leaders, Biden claimed U.S. sanctions by the Commerce Division will also restrict superior-tech trade with Moscow to restrict its entry to semiconductors needed to manufacture synthetic intelligence, aerospace and defense components. The U.K. and Canada the two announced crackdowns on exports to Russia previously Thursday.

Biden reported that if Russia conducts cyberattacks in opposition to U.S. providers or infrastructure, those steps would be met in kind.

But he reiterated that the U.S. would not mail troops into Ukraine.

“Our forces are not and will not be engaged in the conflict with Russia in Ukraine. Our forces are not likely to Europe to fight in Ukraine, but to protect our NATO allies,” Biden stated. We will “defend just about every inch of NATO territory with the full force of American energy.”

CNBC Politics

Read additional of CNBC’s politics coverage:

The financial penalties occur as Russian troops advance by way of Ukraine after embarking on a massive-scale offensive of its neighbor early Thursday neighborhood time.

Putin announced that Russia would start a “specific army operation” in Ukraine built to check its armed service ability and extra that Moscow’s ideas do not incorporate the profession of Ukrainian territory.

“As a result of Putin’s war of alternative, Russia will confront instant and extreme strain on its financial system, and significant costs from its isolation from the world monetary method, world trade, and slicing-edge engineering,” the White Dwelling claimed in a press launch.

The Biden administration famous Thursday that Russia’s financial system has previously faced intensive stress in modern months amid a swoon in the price of the ruble and that its inventory market sunk to its most affordable level in in excess of fours years.

“With these new stringent measures,” the White Dwelling additional, “these pressures will additional accumulate and suppress Russia’s economic progress, boost its borrowing prices, raise inflation, intensify funds outflows, and erode its industrial base.”

The U.S. and its NATO allies say there has been little to no proof of armed forces aggression from Ukraine and that Russian promises to the contrary served as Moscow’s pretext for invasion.

The armed service conflict in Ukraine and subsequent financial sanctions have retained world wide marketplaces unstable for weeks and roiled traders again on Thursday. In Europe, the Stoxx 600 closed down a lot more than 3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} as financial institution shares swooned extra than 8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, whilst the German DAX index dropped 4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

The U.S. S&P 500 traded about .2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increased.

New To Cloud Computing? Eight Tips To Make It Work For Your Business

New To Cloud Computing? Eight Tips To Make It Work For Your Business

Cloud computing has turn into wildly well known in the earlier decade as it gives an array of advantages for businesses—especially ones with large-scale operations that need a broad amount of money of computer system system sources. Cloud computing products and services supply an inexpensive and protected way to retailer facts and accessibility it on desire so you might be not shedding money getting, storing and sustaining your very own servers and facts facilities.

While the added benefits of cloud computing are distinct, there are countless products and services accessible today—and a great number of strategies of employing them—so receiving begun can often be too much to handle. To help, eight professionals from Young Entrepreneur Council share their major recommendations for business enterprise house owners who are utilizing cloud computing for the to start with time. 

1. Apply Cloud Computing Slowly and gradually

It truly is a very good strategy to carry out cloud computing into your enterprise product slowly. If you go far too rapidly, you can find a opportunity you could overwhelm yourself and your group associates. In its place of earning a bunch of drastic adjustments, consider about one particular spot of your organization that could be improved with cloud computing. Apply your method and make adjustments in excess of time. When you’re prepared, use the cloud for yet another part of your business that could reward from the attributes and performance of these valuable instruments. – John Turner, SeedProd LLC

2. Glance For Complementary Products and services And Piecemeal Implementation

New streaming technology makes it possible for for operate and productivity applications to be accessed immediately from a personal computer without getting them pre-installed, ensuring perform can be done quickly. For those small business proprietors seeking to raise the productiveness of their workforce, built-in cloud answers from services like Microsoft Azure or Google Workspace allow for for shared storage, software solutions and other rewards all underneath a solitary umbrella, cutting down expenses and enabling workspaces to be extra efficient and better managed. Administrators need to consider services that deliver complementary solutions and allow for piecemeal implementation, letting them to extend as needed and not incur pointless fees, offering scalability and productivity at the ideal price. – Juan Jose Rosas, Rose Hill

3. Have Tech Help On Hand For Issues

Have tech assist on hand for complex challenges to steer clear of anxiety. Our regulation organization was cloud-based before the Covid-19 pandemic, and we took pride in becoming a paperless legislation company. Just after consulting with other enterprise entrepreneurs, I found that successful businesses experienced tech assistance on hand in the occasion of an crisis. And I am not chatting about the tech assistance you discover on a 3rd-get together or application website—I imply your incredibly have exceptional tech help that can aid you with nuances, specifically for your organization. Our organization dealt with a ton of significant digital information for customers. Fairly than waste time downloading slowly and gradually and transferring amid other crew associates, we recognized efficient means to function using the cloud to our benefit, thus conserving our shoppers funds and conserving us labor fees. – Givelle Lamano, Lamano Law Workplace

4. Apply Suggestions For Security Or Privacy Issues

When transitioning to the cloud for the first time, make guaranteed not to neglect protection and privateness challenges. The proper tools and framework can assist stop most details breaches, but it will also probably be needed to put into action new recommendations for workforce so that they know how to take care of business data files and knowledge safely. This is in particular true if your company is also transitioning to a distant or hybrid workforce. – Reuben Yonatan, GetVoIP

5. Consider Cloud Architecture

Decide what kind of cloud you will use for your enterprise. After you define what form of cloud (community, personal or hybrid), then make a decision what variety of programs or data you may shop in there. To do this, consider about what kind of information you and your group use the most. The supreme target for making use of clouds is to make communication less complicated in between workforce users, so consider to get suggestions from section heads or other administrators when selecting the architecture of your cloud. – Shu Saito, All Filters

6. Teach By yourself 1st

Get the time to find out how to make it efficient. I know there have been instances when I’ve utilised new know-how because I was explained to it was the new factor and all the good businesses were executing it, but I observed out that jumping in without being familiar with it just produced a mess of factors. You do not have to implement cloud computing tomorrow. Take a couple of brief courses to study about it to start with. Uncover out what it can do for your business and how it can make every little thing far more effective. It will not likely do you any excellent if you are spending hrs attempting to take care of a cloud computing issue simply because a little something was accomplished incorrectly or ineffectively. Which is time squandered. – Baruch Labunski, Rank Safe

7. Set Limitations For How A lot You System On Expending

When implementing cloud computing, be thorough to set a limit for how substantially you program on paying. There are cloud platforms that will demand you dependent on your utilization. If you happen to be not watchful, you can expect to stop up working with far more characteristics than you realize and get amazed with a larger sized monthly bill than you assume. Established a limit for how substantially details you want to use and how much you program on paying just about every thirty day period. Employing cloud computing platforms can be extremely demanding for an individual new to it. So make certain that you comprehend how to leverage it or be willing to seek the services of somebody to assistance you use it. – Blair Williams, MemberPress

8. Have A System For Firm

Make sure you have a strategy in place to accurately title, manage and identify your documents. Meticulously designate who can upload information and to what servers they have permissions for. Even though cloud computing can be much additional economical, letting your on line realm devolve into chaos will deeply minimize into that effectiveness. By simply monitoring and controlling accessibility to these electronic spaces, you will have a cleaner, much easier-to-do the job-in area and will be in a position to improved steer clear of many stability and legal responsibility difficulties. – Salvador Ordorica, The Spanish Team LLC

Newtek Business Services Corp. Reports Full Year 2021

Newtek Business Services Corp. Reports Full Year 2021

BOCA RATON, Fla., Feb. 23, 2022 (GLOBE NEWSWIRE) — Newtek Business Services Corp. (“Newtek” or the “Company”) (Nasdaq: NEWT), an internally managed business development company (“BDC”), announced today its financial and operating results for twelve months ended December 31, 2021.

Full Year 2021 Financial Highlights

  • Total investment income of $108.5 million for the twelve months ended December 31, 2021; an increase of 17.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over total investment income of $92.2 million for the twelve months ended December 31, 2020.
  • Net investment income of $25.7 million, or $1.13 per share, for the twelve months ended December 31, 2021, which represents a 25.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease, on a per share basis, compared to net investment income of $32.0 million, or $1.51 per share, for the twelve months ended December 31, 2020.
  • Adjusted net investment income (“ANII”) of $79.1 million, or $3.47 per share, for the twelve months ended December 31, 2021; an increase of 69.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to ANII of $43.4 million, or $2.05 per share, for the twelve months ended December 31, 2020.
  • Debt-to-equity ratio of 1.19x at December 31, 2021; proforma debt-to-equity ratio was 1.10x after taking into account the sales of government-guaranteed portions of SBA 7(a) loans prior to December 31, 2021, which sales settled subsequent to the balance sheet date.
  • Total investment portfolio increased by 13.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $758.8 million at December 31, 2021, from $671.2 million at December 31, 2020.
  • Net asset value (“NAV”) of $403.9 million, or $16.72 per share, at December 31, 2021; an increase of 8.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to NAV of $15.45 per share at December 31, 2020.
  • On December 9, 2021, Newtek closed its eleventh small business loan securitization, with the sale of $103.4 million of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2021-1.
  • On August 2, 2021, the Company announced that it entered into an agreement to acquire National Bank of New York City (“NBNYC”), a nationally chartered bank, subject to certain regulatory and shareholder approvals.

2021 & 2022 Dividend Payments & 2022 Forecast

  • On December 30, 2021, the Company paid a fourth quarter 2021 cash dividend of $1.05 per share to shareholders of record as of December 20, 2021, which represented a 123.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the fourth quarter 2020 dividend of $0.47 per share.
  • The Company paid $3.15 per share in dividends in 2021; a 53.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over dividends paid in 2020 and a 46.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over dividends paid in 2019.
  • The Company’s board of directors declared a first quarter 2022 dividend of $0.652 per share, which represents a 30.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the first quarter 2021 dividend, payable on March 31, 2022 to shareholders of record on March 21, 2022.
  • The Company forecasts a second quarter 2022 dividend of $0.652 per share.

Lending Highlights

  • Newtek Small Business Finance, LLC (“NSBF”) funded a record $198.0 million of SBA 7(a) loans during the three months ended December 31, 2021; a 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the $113.6 million of SBA 7(a) loans funded for the three months ended December 31, 2020.
  • NSBF funded a record $560.6 million of SBA 7(a) loans during the twelve months ended December 31, 2021, an increase of 184.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over $196.8 million of SBA 7(a) loans funded for the twelve months ended December 31, 2020, and within the previously forecasted funding range.
  • NSBF forecasts funding approximately $750 million of SBA 7(a) loans for the full year 2022.
  • Newtek Business Lending (“NBL”), a wholly owned portfolio company, funded and/or closed $90.1 million SBA 504 loans during the twelve months ended December 31, 2021, compared to $87.2 million SBA 504 loans funded and/or closed during the twelve months ended December 31, 2020.
  • NBL forecasts funding and/or closing approximately $150 million SBA 504 loans for the full year 2022, which would represent an 66.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over 2021 SBA 504 fundings and/or closings at the midpoint of the 2022 forecasted range.
  • NSBF funded a total of $1.9 billion of PPP loans from 2020 through the twelve months ended December 31, 2021.

Subsequent 2021 Events

  • On January 28, 2022, Newtek’s joint venture, Newtek Conventional Lending LLC (“NCL”), closed a conventional commercial loan securitization with the sale of $56.3 million Class A Notes (“Notes”), NCL Business Loan Trust 2022-1, secured by a segregated asset pool consisting primarily of conventional commercial business loans. The Notes were rated “A” (sf) by DBRS Morningstar.

Barry Sloane, Chairman, President and Chief Executive Officer said, “We couldn’t be more pleased with the operational performance and the related financial results for calendar year 2021. When we reflect back on March of 2020, when federal and state officials were shutting down most commercial and personal activities, to foresee 22 months later the current position we are in would have been almost unimaginable. Despite tremendous headwinds, Newtek’s business operations and financial model has evolved, been enhanced, and is delivering desired results.”

Focusing first on the lending business, Mr. Sloane commented, “The concept of us funding approximately $729 million of PPP loans to 16,000 clients in 2021 while simultaneously funding a record level of $560.6 million of SBA 7(a) loans and NBL funding and/or closing $90.1 million of SBA 504 loans is an incredible feat which needs to be highlighted. This window of time has forced our organization and all of its stakeholders to bear down and materially improve our technology, training and capability to enable our organization to scale and grow in lending and other solutions. As an example, our lending teams received over 2,350 hours of additional training, compliance and management directives in 2021 alone. Simply stated, we believe we are a much better company today than we were in early 2020.”

Mr. Sloane continued, “In addition, in January 2022, we closed our first securitization of non-conforming conventional loan originations with one of our joint venture partners. We believe this activity, which we will discuss in further detail on our earnings call tomorrow morning, is an opportunity for an additional revenue engine through origination fees, servicing fees, and spread income which can complement the income generated from our existing SBA 7(a) and our portfolio company’s SBA 504 loan business. In addition, in December 2021, we closed our 11th securitization of SBA 7(a) loans with tremendous investor acceptance, over 4.5x over subscribed, attractive pricing and consistent advance rates.”

Mr. Sloane concluded, “We are also pleased to report a debt-to-equity ratio of 1.19x at December 31, 2021. In addition, NAV was $403.9 million, or $16.72 per share, at December 31, 2021, which represents an increase of 8.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to NAV of $15.45 per share at December 31, 2020. In 2021, we also accomplished the milestone of reaching over $1.0 billion in total assets. Our payment processing businesses and managed technology solutions business generated EBITDA of approximately $19.0 million in 2021. We are proud of these accomplishments as well as the trajectory of these businesses. We look forward to discussing these results in further detail on tomorrow morning’s call.”

Full Year 2021 Conference Call and Webcast

A conference call to discuss full year 2021 results will be hosted by Barry Sloane, President, Chairman and Chief Executive Officer, and Nicholas Leger, Chief Accounting Officer, tomorrow, Thursday, February 24, 2022 at 8:30 a.m. ET. The live conference call can be accessed by dialing (800) 708-4540 or (847) 619-6397 using the confirmation number: 50281915.

In addition, a live audio webcast of the call with the corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of Newtek’s website at http://investor.newtekbusinessservices.com/events-and-presentations. A replay of the webcast with the corresponding presentation will be available on Newtek’s website shortly following the live presentation and will remain available for 90 days.

1Use of Non-GAAP Financial Measures – Newtek Business Services Corp. and Subsidiaries

In evaluating its business, Newtek considers and uses ANII as a measure of its operating performance. ANII includes short-term capital gains from the sale of the guaranteed portions of SBA 7(a) loans and conventional loans, and beginning in 2016, capital gain distributions from controlled portfolio companies, which are reoccurring events. The Company defines ANII as Net investment income (loss) plus Net realized gains recognized from the sale of guaranteed portions of SBA 7(a) loan investments, less realized losses on non-affiliate investments, plus the net realized gains on controlled investments, plus or minus the change in fair value of contingent consideration liabilities, plus loss on extinguishment of debt, plus or minus an adjustment for gains or losses on derivative transactions.

We do not designate derivatives as hedges to qualify for hedge accounting and therefore any net payments under, or fluctuations in the fair value of, our derivatives are recognized currently in our GAAP income statement. However, fluctuations in the fair value of the related assets are not included in our income statement. We consider the gain or loss on our hedging positions related to assets that we still own as of the reporting date to be “open hedging positions.” While recognized for GAAP purposes, we exclude the results on the hedges from ANII until the related asset is sold and/or the hedge position is “closed,” whereupon they would then be included in ANII in that period. These are reflected as “Adjustment for realized gain/(loss) on derivatives” for purposes of computing ANII for the period. We believe that excluding these specifically identified gains and losses associated with the open hedging positions adjusts for timing differences between when we recognize changes in the fair values of our assets and changes in the fair value of the derivatives used to hedge such assets.

The term ANII is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. ANII has limitations as an analytical tool and, when assessing the Company’s operating performance, investors should not consider ANII in isolation, or as a substitute for net investment income, or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, ANII does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than Newtek, limiting their usefulness as comparative tools. The Company compensates for these limitations by relying primarily on its GAAP results supplemented by ANII.

2 Note Regarding Dividend Payments
Amount and timing of dividends, if any, remain subject to the discretion of the Company’s Board of Directors. The Company’s Board of Directors expects to maintain a dividend policy with the objective of making quarterly distributions in an amount that approximates 90 – 100{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the Company’s annual taxable income. The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon its taxable income for the full year and distributions paid for the full year.

Note Regarding PPP Income
The Company’s financial results for 2020 and the twelve months ended December 31, 2021, includes income generated from NSBF’s origination of loans under the Paycheck Protection Program (PPP), which ended during the third quarter of 2021, and should not be viewed as recurring.

Newtek Business Services Corp., Your Business Solutions Company®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.

Newtek’s and its portfolio companies’ products and services include: Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.

Newtek® and Your Business Solutions Company®, are registered trademarks of Newtek Business Services Corp.

Note Regarding Forward Looking Statements

This press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” “forecasts,” “goal” and “future” or similar expressions are intended to identify forward-looking statements. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, include our ability to close the pending acquisition of the National Bank of New York City (the “Acquisition”), obtain required regulatory approvals for the pending Acquisition and obtain shareholder approval to withdraw our election as a BDC, as well as projections concerning or considering the pending Acquisition, our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital and the ability to maintain certain debt to asset ratios, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause Newtek’s actual results to differ from management’s current expectations, are contained in Newtek’s filings with the Securities and Exchange Commission and available through http://www.sec.gov/. Newtek cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.

SOURCE: Newtek Business Services Corp.

Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com 

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
  December 31,   December 31,
  2021   2020
ASSETS (Unaudited)    
Investments, at fair value      
SBA unguaranteed non-affiliate investments (cost of $431,970 and $420,400, respectively; includes $344,266 and $312,649, respectively, related to securitization trusts) $ 424,417     $ 407,748  
SBA guaranteed non-affiliate investments (cost of $65,728 and $16,964, respectively)   72,970       17,822  
Controlled investments (cost of $157,289 and $138,891, respectively)   260,398       239,171  
Non-control investments (cost of $1,000 and $6,447, respectively)   1,000       6,447  
Total investments at fair value   758,785       671,188  
Cash   2,397       2,073  
Restricted cash   184,463       49,352  
Broker receivable   44,537       52,730  
Due from related parties   4,395       6,112  
Servicing assets, at fair value   28,008       26,061  
Right of use assets   7,310       6,933  
Other assets   26,666       26,530  
Total assets $ 1,056,561     $ 840,979  
       
LIABILITIES AND NET ASSETS      
Liabilities:      
Bank notes payable $ 50,000     $ 86,339  
Notes due 2023 (par: $0 and $57,500 as of December 31, 2021 and December 31, 2020)   —       56,505  
Notes due 2024 (par: $38,250 and $63,250 as of December 31, 2021 and December 31, 2020)   37,679       61,774  
Notes due 2025 (par: $15,000 and $5,000 as of December 31, 2021 and December 31, 2020)   14,545       4,735  
Notes due 2026 (par: $115,000 and $0 as of December 31, 2021 and December 31, 2020)   112,128       —  
Notes payable – Securitization trusts (par: $249,750 and $221,752 as of December 31, 2021 and December 31, 2020)   246,250       218,339  
Notes payable – related parties   11,450       24,090  
Due to related parties   1,490       2,133  
Lease liabilities   9,056       8,697  
Deferred tax liabilities   12,733       11,406  
Due to participants   146,225       17,885  
Derivative instruments   183       —  
Accounts payable, accrued expenses and other liabilities   10,935       9,723  
Total liabilities   652,674       501,626  
       
Commitment and contingencies      
Net assets:      
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding)   —       —  
Common stock (par value $0.02 per share; authorized 200,000 shares, 24,159 and 21,970 issued and outstanding, respectively)   483       439  
Additional paid-in capital   367,663       316,629  
Accumulated undistributed earnings   35,741       22,285  
Total net assets   403,887       339,353  
Total liabilities and net assets $ 1,056,561     $ 840,979  
Net asset value per common share $ 16.72     $ 15.45  
       
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
     
  Year Ended December 31,
   2021    2020    2019
Investment income          
From non-affiliate investments:          
Interest income – PPP loans $ 49,989     $ 37,743     $ —  
Interest income – SBA 7(a) loans   25,951       24,719       28,467  
Servicing income   11,307       11,154       10,078  
Other income   5,696       2,693       5,328  
Total investment income from non-affiliate investments   92,943       76,309       43,873  
From non-control investments:          
Interest income   428       403       —  
Dividend income   95       104       111  
Total investment income from non-control investments   523       507       111  
From controlled investments:          
Interest income   2,598       1,933       1,024  
Dividend income   9,801       13,452       14,287  
Other income   2,629       —       —  
Total investment income from controlled investments   15,028       15,385       15,311  
Total investment income   108,494       92,201       59,295  
Expenses:          
Salaries and benefits   17,866       14,211       14,305  
Interest   20,515       17,877       20,422  
Depreciation and amortization   304       402       501  
Professional fees   5,610       3,718       3,807  
Origination and loan processing   10,234       8,431       9,215  
Origination and loan processing – related party   19,272       9,855       9,944  
Change in fair value of contingent consideration liabilities   —       54       42  
Loss on extinguishment of debt   1,552       —       251  
Other general and administrative costs   7,454       5,668       6,427  
Total expenses   82,807       60,216       64,914  
Net investment income (loss)   25,687       31,985       (5,619 )
Net realized and unrealized gains (losses):          
Net realized gain on non-affiliate investments – SBA 7(a) loans   53,113       11,368       47,816  
Net realized gain (loss) on controlled investments   (1,266 )     —       2,585  
Net realized gain on derivative transactions   590       —      
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments   6,380       (795 )     (225 )
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments   5,097       (176 )     (6,291 )
Net unrealized appreciation (depreciation) on controlled investments   2,829       (8,237 )     11,211  
Change in deferred taxes   (1,327 )     999       (3,164 )
Net unrealized depreciation on derivative transactions   (183 )     —      
Net unrealized depreciation on servicing assets   (6,778 )     (1,525 )     (5,178 )
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
Net realized and unrealized gains $ 58,455     $ 1,634     $ 46,754  
Net increase in net assets resulting from operations $ 84,142     $ 33,619     $ 41,135  
Net increase in net assets resulting from operations per share $ 3.69     $ 1.59     $ 2.13  
Net investment income (loss) per share $ 1.13     $ 1.51     $ (0.29 )
Dividends and distributions declared per common share $ 3.15     $ 2.05     $ 2.15  
Weighted average number of shares outstanding   22,795       21,146       19,326  
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES-
ADJUSTED NET INVESTMENT INCOME RECONCILIATION:
 
  Year ended       Year ended    
(in thousands, except per share amounts) December 31, 2021   Per share   December 31, 2020   Per share
Net investment income $ 25,687     $ 1.13     $ 31,985     $ 1.51  
Net realized gain on non-affiliate investments – SBA 7(a) loans   53,113       2.33       11,368       0.54  
Net realized loss on controlled investments   (1,266 )     (0.06 )     —       —  
Adjustment for realized gain on derivatives (1)   25       0.00       —       —  
Change in fair value of contingent consideration liabilities   —       —       54       0.00  
Loss on debt extinguishment   1,552       0.07       —       —  
Adjusted Net investment income $ 79,111     $ 3.47     $ 43,407     $ 2.05  
Note: Amounts may not foot due to rounding        
               
(1)  The following is a reconciliation of GAAP net realized gain/(loss) on derivative transactions to our adjustment for realized gain/(loss) on derivatives on closed transactions presented in the computation of ANII in the preceding tables:
               
  Year ended       Year ended    
(in thousands, except per share amounts) December 31, 2021   Per share   December 31, 2020   Per share
Net realized gain on derivatives $ 590     $ 0.03     $ —     $ —  
Hedging realized result on open hedging positions   (565 )     (0.02 )     —       —  
Adjustment for realized gain on derivatives $ 25     $ 0.00     $ —     $ —  
Note: Amounts may not foot due to rounding        
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
DEBT-TO-EQUITY RATIO – ACTUAL AT DECEMBER 31, 2021
(in thousands):        
Actual Debt-to-Equity Ratio at December 31, 2021        
Total senior debt   $ 479,450    
Total equity   $ 403,887    
Debt-to-equity ratio – actual   1.19x    
         
         
         
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
DEBT-TO-EQUITY RATIO – PROFORMA AT DECEMBER 31, 2021
(in thousands):        
Broker receivable, including premium income receivable   $ 44,537    
Less: realized gain on sale included in broker receivable     (4,783 )  
Broker receivable     39,754    
         
90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} advance rate on SBA guaranteed non-affiliate portions of loans sold, not settled   $ 35,779    
         
         
Proforma debt adjustments at December 31, 2021:        
Total senior debt   $ 479,450    
Proforma adjustment for broker receivable     (35,779 )  
Total proforma debt   $ 443,671    
         
         
Proforma Debt-to-Equity ratio at December 31, 2021:        
Total proforma debt   $ 443,671    
Total equity   $ 403,887    
Debt-to-equity ratio – proforma   1.10x