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National Funding Review

National Funding is a small business loan and equipment financing company based in San Diego, California. It offers business loans directly and through a network of lenders.

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The company started in 1999 and specialized in equipment leasing. Today, National Funding offers diverse solutions. The lender provides short-term business loans, merchant cash advances and equipment financing.

National funding is known for its quick funding process, early payoff discounts and the option to extend loan terms.

Consider National Funding if you:

  • Need quick access to capital
  • Need to purchase or lease business equipment
  • Had trouble acquiring financing through banks

National Funding Short-Term Loans

National Funding provides short-term loans that are easier to qualify for and faster to fund. This comes in handy when you need to fund an emergency expense or maintain healthy cash flow. It uses a flat-fee payback structure that comes with a factor rate ranging from 1.17 to 1.36.

You’ll be making fixed payments over the course of your loan term at daily or weekly intervals. National Funding offers a 7% discount if you pay off your loan balance early.

National Funding short-term loan features include:

  • Loan amounts from $5,000 to $300,000
  • Financing terms between 6 and 15 months
  • Factor rates from 1.17 to 1.36
  • No collateral required

National Funding Merchant Cash Advance

A merchant cash advance provides upfront cash in exchange for a percentage of your future sales.

The merchant cash advance from National Funding has the following convenient features:

  • Advances up to $250,000
  • Same-day approval
  • No collateral required
  • Automated payments based on a percentage of daily credit card sales

Repayment involves holding back a percentage of your daily credit card sales or using Automated Clearing House (ACH) withdrawals. Here, fixed payments are remitted either weekly or daily over a set term, and funds are automatically drawn from your linked bank account.

National Funding Equipment Financing and Leases

National Funding equipment financing is available for new or pre-owned equipment. You can acquire up to $150,000 in capital to buy or lease equipment. Down payments are not required and loans are repaid monthly over the duration of the term.

The company offers the Guaranteed Lowest Payment program for competitive equipment leases. They guarantee to provide the lowest lease payment for terms ranging from 24 to 60 months, or pay $1,000. To be eligible, you must have a lease agreement, a competitive lease quote as well as a vendor invoice.

Notable features on the equipment financing from National Funding include:

  • Equipment financing up to $150,000
  • Terms from 2-5 years
  • No down payment required

National Funding Loan Review

When applying for a loan from National Funding, you’ll fill out a 1-page online form. Once they receive your application, they’ll perform a soft pull of your personal credit. If you pass the initial screening, you’ll then proceed to the underwriting process.

In the underwriting process, loan specialists determine a borrower’s factor rate and repayment schedule. If you qualify, you’ll have to decide between weekly or daily repayment options. If National Funding rejects your application, you can reapply after 30 days.

National Funding offers to finance either directly or through a network of lenders, and also provides a 7% prepayment discount if you pay back your working capital loan within 100 days of receiving funds. If you’ve paid back at least 70% of your loan, you may qualify for additional funding. In addition, equipment financing clients who pay off their remaining loan balance early, get a 6% discount. Early payment discounts do not apply to equipment lease contracts.

The Pros of National Funding

  • Allows loan extensions with repeated borrowing
  • Rewards borrowers who pay loans early
  • Offers fast access to capital

The Cons of National Funding

  • It’s hard to get an exact rate quote without applying for a loan
  • All loans have to be personally guaranteed by the borrower, so business owners are liable if the business is unable to repay its debts.

National Funding Requirements

  • Annual Business Revenue: $100,000
  • Personal Credit Score: 575
  • Time in Business: 12 Months
  • Time in Business: 1 Year
  • Time in Business: 6 Months
  • Transactions: $3,000+ in monthly credit card transactions

National Funding: What You Need to Apply

  • For the short-term loan, you’ll be required to submit business bank statements for the last 3 months
  • You’ll need a quote from a vendor for equipment financing
  • Personal contact information and your social security number
  • Annual gross sales figures

Final Word: National Funding Review

National Funding boasts a Better Business Bureau (BBB) rating of A+ and it’s given high marks by customers for their streamlined application and approval process, relaxed requirements and renewal options.

Reviews are polarized, however, with a rating of 2.5 out of 5.0 on the BBB site. Complaints centered on high fees and aggressive sales tactics.

National Funding is a veteran in the small business online lending space. It’s known for its customer service, high approval rates and early payoff incentives.

Furthermore, their rates aren’t bad, provided you have a fair credit score and decent financial profile.

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