National Funding is an online business lender that provides working capital and equipment financing to entrepreneurs. The San Diego-based lender has provided funding to small businesses in the U.S. since 1999.
It accepts applications online, sometimes providing funding in as little as 24 hours. It doesn’t require collateral or a down payment when you apply for a loan, and there’s no obligation to accept a loan offer. National Funding has an “excellent” rating and a majority of positive reviews on Trustpilot, a consumer review platform.
In this review, we’ll break down what National Funding has to offer to help you decide if this lender is the right match for your business.
National Funding loan details
National Funding offers several financing products to eligible small business owners. APRs range from 17.00% to 38.00% for qualified applicants, which could include an origination fee up to 2.50%.
Small business loan
National Funding issues small business loans between $5,000 and $500,000. You could use a small business loan to cover a variety of expenses, including equipment upgrades, inventory and building materials. To collect payments, National Funding makes automatic daily or weekly withdrawals from borrowers’ bank accounts. Terms for small business loans range from four months to two years.
Merchant cash advance
National Funding provides merchant cash advances of up to $250,000. It gives business owners a lump sum of cash in exchange for a portion of their future credit card sales. The lender automatically takes a percentage of each credit card transaction until the advance is paid back. Merchant cash advances typically have more lenient eligibility requirements than business loans, but the fast repayment process can be difficult for some business owners.
Business owners can buy new or pre-owned equipment with financing from National Funding. The lender offers up to $150,000 in equipment financing and does not require a down payment. Payments are due monthly with terms that span two to five years. National Funding offers deferred payment options, which means you could make payments seasonally or quarterly — or skip payments if you need. Though you could temporarily adjust your payments, you may later face a catch-up period and your payment amounts could increase. Be sure you to check your loan agreement to understand what National Funding would expect.
National Funding provides a “guaranteed lowest payment” for select equipment leases as well. Within seven days of receiving an equipment lease offer from National Funding, you must present a competing lease offer exceeding $10,000 with the same terms and conditions. If the competing offer provides a lower monthly lease payment than what National Funding is offering, National Funding will either beat the offer or pay you $1,000.
See our top picks for the best equipment financing companies for 2019.
What businesses are eligible for National Funding financing?
National Funding works with business in a wide range of industries. Here are some examples of the tailored product offerings:
- Beauty and wellness
- Construction and contracting
- Automotive repair
- Commercial trucks, trailers and vehicles
- Construction and contractor equipment
National Funding also has special interest loan programs for minority-owned, veteran-owned and women-owned businesses.
The pros and cons of National Funding
Possible to be approved for small business loan with credit score as low as 500
“Guaranteed lowest payment” provided for select equipment leases
Early payoff discounts are offered
Lowest possible APR is 17.00%
Could take up to seven days to receive funds
Startup businesses are ineligible
The application process and requirements
Business owners fill out an application online, which National Funding could process right away. If approved, you could see funds in your bank account in one to seven days.
All applicants are required to submit their business name, address and tax identification number. Equipment financing applications require a quote from the vendor from which you plan to buy the equipment. And merchant cash advance applications ask for your last four months of credit card statements.
Eligibility requirements depend on the product for which you’re applying:
Small business loan
- $100,000 in annual sales
- 1 year in business
- FICO Score of at least 500
- 6 months in business
- FICO Score of over 620
Merchant cash advance
- 1 year in business
- Over $3,000 in monthly credit card transactions
After you apply, National Funding would disclose the interest rate and loan terms for which you qualify. Some online lenders provide a range of rates and terms upfront without an application, which may make it difficult to compare National Funding with other lenders while shopping.
The fine print
Discounts available for early payoff. Although you wouldn’t know the price of your loan until submitting an application, you would have an opportunity to save money by paying off your debt early. If you pay off equipment financing early at any point, you could save 6% off your total balance. If you pay off working capital financing within the first 100 days, you could receive 7% off your total amount. You must pay the balance in full and be in good standing with National Funding to take advantage of the discount.
The bottom line
National Funding provides working capital and equipment financing to business owners who may have trouble securing funding elsewhere. Entrepreneurs with less-than-perfect credit or just one year in business could qualify for a business loan or merchant cash advance from National Funding. And business owners with as few as six months in business could be eligible for equipment financing. National Funding serves businesses in a range of industries, specializing in specific areas that may match your small business.
Although National Funding does not disclose many details online, such as interest rates and certain credit requirements, the application is easy to complete. When choosing business financing, speed is likely an important factor. National Funding could help you get money for your business quickly.
LendingTree — which owns MagnifyMoney — may be a good place to start as well since you could review and compare multiple business lenders at once.