New Sequoia is a fintech platform that lets you borrow against future income, not collateral or credit score
New Sequoia is an income-based lending platform designed for self-employed people, gig workers, and small business owners who have inconsistent income or limited credit history. Instead of looking at your credit score or asking for collateral, New Sequoia examines your actual business revenue — usually from bank statements or tax returns — to decide whether to lend and how much. You repay through a percentage of your daily sales, so payments rise and fall with your income rather than staying fixed.
The platform targets people who fall outside traditional bank lending: freelancers, Etsy sellers, Uber drivers, salon owners, and others whose income doesn't fit a W-2 paycheck pattern. If you have been turned down by banks because your income is variable or your credit is thin, New Sequoia's revenue-based model may open a door that was closed.
Key Takeaways
- New Sequoia lends based on your actual business revenue shown in bank statements, not your credit score or personal assets.
- You repay through a daily percentage of your sales, so your payment amount changes with your income — lower months mean lower payments.
- The platform is built for self-employed and gig workers whose income is variable or who have limited credit history.
- Repayment terms and rates depend on your revenue history, how much you borrow, and the repayment percentage you agree to.
- You will need recent bank statements and tax returns to show your income history before New Sequoia can make a lending decision.
How New Sequoia evaluates your income and decides how much to lend
New Sequoia asks for bank statements covering the past three to six months, depending on how long your business has been operating. The platform analyzes your deposits to calculate your average monthly revenue. This number becomes the basis for how much you can borrow — typically a multiple of your monthly average, though the exact amount varies by applicant.
Unlike a traditional bank, New Sequoia does not run a hard credit check that damages your score. It may verify your identity and check for fraud, but your credit history is not the deciding factor. If you have been rejected by banks because of a low score or thin credit file, this approach can work in your favor.
The platform also looks at how long your business has been operating. Newer businesses may may have access to for smaller loans or face stricter terms. Established businesses with longer revenue histories typically have access to larger amounts.
Understanding the repayment structure and daily payment model
New Sequoia uses a revenue-based repayment model, which means you do not pay a fixed monthly bill. Instead, a percentage of your daily sales goes toward repayment. If you have a slow week, your payment that week is smaller. If you have a strong week, your payment is larger. This structure is designed to match your cash flow rather than force you to pay the same amount regardless of business performance.
The repayment percentage you agree to depends on the loan amount, the term, and your revenue. A smaller loan or shorter repayment window typically means a lower daily percentage. A larger loan or longer term may mean a higher percentage. You will see the exact percentage before you accept the loan.
Repayment continues until you have paid back the full loan amount plus the cost of borrowing. Because the percentage is fixed but your sales vary, the time it takes to finish repayment is not fixed — a strong sales period can shorten it, while a slow period can extend it.
What documents you need to provide
New Sequoia will ask for bank statements showing your business deposits. Most commonly, you will need three to six months of statements from the account where your business revenue lands. If you have been in business for less than a year, you may need statements covering your entire operating history.
You may also be asked for tax returns, particularly if you have been in business for more than a year. A Schedule C (if you are a sole proprietor), a business tax return, or personal tax returns showing self-employment income all help New Sequoia verify your revenue claims.
Have your business bank account information ready, because New Sequoia will need to connect to your account to monitor deposits and collect repayment. You will authorize this connection during the process, and you can revoke it if you stop using the platform.
Comparing New Sequoia to traditional bank loans and other alternatives
A traditional bank loan requires a credit score, often a personal may provide, and sometimes collateral. Banks also want to see stable, predictable income — which self-employed people rarely have on paper. The approval process is slow, and rejection is common for gig workers and new business owners.
New Sequoia skips the credit score requirement and accepts variable income as normal. Approval is faster, and the repayment structure is built for income that fluctuates. The trade-off is that the cost of borrowing is typically higher than a bank loan, because New Sequoia takes on more risk by lending to people banks reject.
Other alternatives include merchant cash advances (which also use daily sales but often have higher costs and stricter terms), personal loans from online lenders (which do check credit and may require a co-signer), and business lines of credit from fintech platforms (which may require collateral or a personal may provide). Each has different requirements and costs.
Costs, fees, and what you actually pay to borrow
New Sequoia does not charge interest in the traditional sense. Instead, you pay a cost of borrowing built into the repayment percentage. If you borrow $5,000 and agree to repay 10% of daily sales, you will keep paying that 10% until the loan plus the cost is fully repaid.
The total cost depends on how quickly your sales allow you to repay. If you repay in three months, the cost is lower than if you repay over a year, because the daily percentage applies for longer. New Sequoia will show you the total amount you will repay before you accept the loan, so you can see the full cost upfront.
Watch for any additional fees — some platforms charge origination fees, account fees, or penalties for late deposits. Ask New Sequoia directly what fees, if any, explore to your loan before you sign.
When New Sequoia might not be the right fit
If your business has very low or inconsistent revenue, New Sequoia may not lend to you, or may offer only a small amount. The platform needs to see enough sales history to believe you can repay through daily percentages.
If you need a very large loan, a traditional bank or SBA loan may be a better fit, assuming you can meet their credit and collateral requirements. New Sequoia is designed for smaller working-capital needs, not major expansion or equipment purchases.
If your business is brand new (less than a few months old), New Sequoia may not have enough revenue history to assess. In that case, a personal loan or a business credit card might be easier to obtain, though both will likely require a credit check.
Frequently Asked Questions
Does New Sequoia check my credit score?
New Sequoia does not use your credit score as the main decision factor. It may verify your identity and check for fraud, but a low credit score will not automatically disqualify you. The focus is on your business revenue, not your personal credit history.
What happens if my sales drop and I cannot make my daily payment?
Because your payment is a percentage of sales, a drop in sales automatically lowers your payment. If sales are very low or stop entirely, your payment shrinks with them. However, you are still obligated to repay the full loan amount eventually. Talk to New Sequoia if your business faces a prolonged downturn.
How long does it take to get approved and receive the money?
New Sequoia typically approves loans within a few business days if your documents are complete and your revenue history is clear. Funding usually follows within one to three business days after approval. Traditional banks often take two to four weeks, so New Sequoia is faster for most applicants.
Can I pay off my New Sequoia loan early?
Most revenue-based lenders allow early repayment without penalty. If you have a strong sales month and want to pay off the remaining balance, you should be able to do so. Confirm New Sequoia's early repayment policy before you accept the loan.
What if I do not have tax returns because my business is new?
New Sequoia will work with bank statements alone if your business is less than a year old. The platform needs to see your actual deposits, which bank statements provide. Tax returns help verify income for established businesses, but they are not always required for newer ones.