National Funding

National Funding Reviews

National Funding Reviews
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About National Funding

National Funding is an alternative lender that has served small business owners for over 24 years. By reviewing applications quickly and accepting lower credit scores than traditional banks, it seeks to provide financing solutions for businesses that need capital urgently. National Funding has two main products: short-term working capital loans and equipment financing.

Pros & Cons

  • Accepts lower credit scores
  • Quick turnaround times
  • Early payoff discounts available
  • Only requires six months in business for term loans
  • Automatic payments required
  • Term loans require $250,000 in annual revenue
  • Equipment finance loans require 2+ years in business

Our editor’s take on National Funding

National Funding is a good option for small businesses needing access to capital quickly. While it lacks transparency around interest rates and fees, National Funding sets itself apart by accepting lower credit scores than most banks and having fast approval times — often within 24 hours.

It offers a variety of financing products like working capital loans, equipment loans and term loans to meet different funding needs. And its financing can help businesses purchase large assets or cover operating costs.

However, National Funding requires personal guarantees on all loans, and you need at least $250,000 in annual revenue to apply for a term loan.

National Funding products

National Funding specializes in offering small business loans and equipment financing.

Small business loans

National Funding offers small business loans of up to $500,000, which it also refers to as working capital loans. These loans provide business owners with funds to cover operating expenses like inventory, payroll, utilities and other regular monthly costs that help keep the business running.

Although the small business loans don’t require collateral, National Funding does require a personal guarantee. This document states that in certain situations, National Funding has the right to seize your personal assets if you can’t repay your loan.

  • Loan amount: $10,000 to $500,000
  • Loan terms: 4 to 18 months
  • Repayment schedule: Daily or weekly
  • Funding speed: As quick as same day after approval
Equipment financing

National Funding provides equipment financing loans of up to $150,000 that allow businesses to purchase necessary equipment and pay it off through fixed monthly installments over a set period of time, usually two to five years. This option can help businesses acquire large assets without coming up with the full capital upfront.

The equipment serves as collateral for the loan, and a personal guarantee is also required.

One benefit of equipment financing is that you can generally deduct a portion of the equipment's cost each year as an expense, thus lowering your taxable income.

  • Loan amount: Up to $150,000
  • Loan terms: 2 to 5 years
  • Repayment schedule: Monthly
  • Funding speed: 24 to 72 hours

National Funding rates

National Funding doesn’t disclose specific interest rates or annual percentage rates (APRs) for its business loan products on its website. It says that rates vary depending on factors like the borrower's credit profile and loan terms, and does not provide any examples or typical rate ranges.

National Funding fees

Like with its interest rates, National Funding doesn’t disclose specific details about fees on its website. ConsumerAffairs spoke with a Funding Specialist who said the origination fee is usually around 2% of the loan amount, but it ultimately depends on your full application.

It's unclear if National Funding has any prepayment or late payment charges. That said, it does offer discounts if you pay off your loan early:

  • For small business loans, you can get a 7% discount on the remaining balance if paid off within 100 days.
  • For equipment financing, you can get 6% off the remaining balance if paid off early.

How to apply for a National Funding loan

Applying for a loan with National Funding starts with a simple online application providing basic business and ownership details. A representative will then gather additional documentation, including bank statements.

Eligibility varies by loan type:

  • Small business loans need at least six months in business, a minimum 600 credit score and at least $250,000 in annual revenue.
  • Equipment financing requires at least two years in business and a minimum 600 credit score. You will also need to supply an equipment quote from a vendor.

Once you submit your application and all required documentation, National Funding will review it and make a lending decision. If approved, you’ll sign an agreement to finalize the loan.

In some cases, you can get approved and funded within a 24-hour period. But if approval gets delayed because National Funding needs more documentation from you, it could delay the process. Still, it can fund business loans as soon as the same business day of approval, and most equipment financing loans within 24 to 72 hours of approval.

How does National Funding compare?

While specific APRs aren't disclosed, National Funding, QuickBridge and OnDeck are all competitive options for small business financing. The main differences are OnDeck's lower maximum loan amounts and higher credit score requirements. However, OnDeck may offer longer repayment terms of up to 24 months.

Here’s how each company’s business loan options compare:

National Funding FAQ

What does National Funding do?

National Funding is an alternative lender that provides small businesses with equipment financing and small business loans. Its financing options help businesses manage expenses, purchase equipment and access operating capital for day-to-day costs and growth opportunities.

Does National Funding offer monthly payments?

National Funding offers monthly payment options for equipment financing. But business term loans and working capital loans have daily or weekly repayment schedules.

Does National Funding require a personal guarantee?

Yes, National Funding typically requires a personal guarantee for all loan types, which states that the business owner(s) will accept personal responsibility for repaying a business loan in the event that the business defaults. This is standard policy at National Funding to help ensure repayment if the business is unable to repay the loan.

Is National Funding legit?

National Funding is a legitimate small business loan provider. It’s been in operation since 1999 and says it has provided over $4.5 billion in loans to over 75,000 companies nationwide in that time. It has not faced any significant legal issues or scandals in its history.

National Funding Reviews

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    How do I know I can trust these reviews about National Funding?
    • 4,482,526 reviews on ConsumerAffairs are verified.
    • We require contact information to ensure our reviewers are real.
    • We use intelligent software that helps us maintain the integrity of reviews.
    • Our moderators read all reviews to verify quality and helpfulness.
    Page 1 Reviews 0 - 10
    Customer ServiceStaff

    Reviewed May 15, 2018

    After applying for a personal loan through another "service," it seemed National Funding was the least shady company of the dozens and dozens of loan brokerage services. The rep assured me there'd be only a 'soft pull' on my credit and all they needed was 3 months bank records. They also assured me, they are a real bank and don't work with brokers. Once I established that I would not accept inflated interest rates, I was immediately asked for permission to have National Loan Digital Funding share my information with their other 'loan partners.' Yes, brokers who simply broadcast your credit information to literally dozens of loan companies, and not A-list companies but more like D list. These sharks will call you 20-30 times per day... and multiple reps from each loan brokerage service. There was a point where my phone didn't stop ringing for 4 hours straight.

    And guess what, since they're all B-D list companies, they use spoof phone numbers. Yes, internet numbers that can't be traced. One company called me about 15 times per day between 5-6 representatives. They anticipate the types of numbers a customer may or may not accept. One company used a combination of 1-800 & 1-877 numbers then went to phone numbers with my city's area code and the rest of the phone number nearly resembling my own personal number. Don't be lazy. If you need a loan, call your banks of choice and do the hard work to get yourself financed. I don't even think the super young adults making the calls even know what they're selling. My rep Justin, would keep asking the same 3-4 questions every time he called (which was on various 312, 800, 877 etc. phone numbers). Don't go down this rabbit hole.

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      National Funding Company Information

      Company Name:
      National Funding
      Year Founded:
      9820 Towne Centre Drive
      San Diego
      Postal Code:
      United States