National Funding Review - The Good and Bad for 2022


National Funding is an online lending solution that’s tailored to small businesses and entrepreneurs. They specialize in fast approvals, simple applications, and personalized service to help you find the right loan and financing option for your business. If you need a small business loan or equipment financing, use this review to see if National Funding is right for you.

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National Funding Compared to the Best Small Business Loans

In addition to National Funding, we researched and reviewed the best small business loans on the market today—with three standing out from the crowd as our “Golden Eggs.”

Lendio is a one-stop shop for business loans and financing that lets you compare different small business loans after filling out just one simple application. Get started now in just 15 minutes for loans of up to $5 million.

OnDeck is perfect for small businesses that need cash fast, as they provide access to short-term loans with same-day funding. Apply now to see if you’re eligible for loans of up to $250,000.

Bluevine offers lines of credit of up to $250,000 and rock-bottom interest rates starting as low as 4.8%. Start your application today and get a decision in less than five minutes. 

National Funding: The Good and The Bad

During our in-depth research process comparing reviews from different resources, we discovered lots of common remarks from small business owners who used National Funding to get a loan. Many of these reviews came with high praise, while others fell a bit short of expectations. We compiled this information to narrow down the strengths and weaknesses of National Funding, which we’ll cover in greater detail below.

What National Funding Is Good At

National Funding definitely shines as a reputable loan option for small business owners. But the platform really stands out against the crowd in the following areas:

Unsecured Small Business Loans Available: Some lenders force small business owners to put up collateral or otherwise secure the loan to apply or get favorable qualification terms. But that’s not the case with National Funding.

You can apply for small business loans, working capital loans, and other financing options through National Funding without any collateral. This means you won’t have to worry about losing your assets, and you can still apply if you don’t own any assets. 

Simple and Risk-Free Application: Many small business owners are hesitant to apply for financing because they’re afraid of damage to their credit scores. But National Funding’s risk-free application is non-committal and won’t impact your credit score. 

So if you’re unsure whether or not you need a loan, you can still fill out an application and just compare your options without having to commit. The simple application process also translates into quicker decisions. Most people who apply get a decision within 24 hours. 

Early Payoff Discounts: If you don’t want to incur interest over the lifetime of your loan, National Funding makes it easy for you to save some money. They provide you with the opportunity to receive discounts by terminating your contract early and repaying the loan in full. 

The details of these payment discounts vary based on the loan type and your contract. But it’s nice to know that you can save money on interest if you have the cash flow to repay your loans early. Not every online lender offers this flexibility, and some even charge a penalty for early repayments. 

Lowest Payment Guarantee: National Funding has an interesting guarantee that you likely won’t find from other online lenders and small business loan platforms. If you’re using National Funding for equipment financing, they guarantee you’ll have the lowest payment for lease terms of 24 to 60 months. If National Funding verifies a competitive lease payment amount that’s lower than the one you’ve been offered, they’ll either beat the rate or pay you $1,000.

There are lots of stipulations, terms, and conditions associated with the guarantee. For example, the competing quote must be issued within seven days of the date when National Funding issued its terms and the comparison is only for leases greater than $10,000. But if you shop around and meet the criteria, you could end up with a lower payment than you expected.

Fair Loan Qualification Criteria: Compared to other online lending platforms, National Funding is pretty reasonable when it comes to which small business owners can qualify for a loan. You only need to be in business for six months, whereas other lenders require 12 to 24+ months in business to accept your application.

You also need to have a minimum credit score of 600 to apply and an average bank balance of $1,500. All of these qualification terms are specifically for short-term loans through National Funding.

Special Interest Funding Options: National Funding offers unique funding solutions to small business owners that fall into special interest groups. This includes minority-owned businesses, women-owned businesses, veteran-owned businesses, and more. 

The team at National Funding can help people who would otherwise have trouble meeting qualification criteria from other lenders. They provide a personalized touch on special qualification applications to help entrepreneurs of different backgrounds get the funding they need to grow.

What National Funding Is Lacking

National Funding does have some weaknesses that are worth mentioning. So make sure you take these into consideration before you apply for a loan.

Industry Restrictions: Depending on the type of small business you’re running, you may not be eligible for a loan through National Funding. Even if you have a high credit score, long business history, and high annual revenue, there are certain industries that just aren’t able to get financing from this platform. 

Examples of businesses that can’t apply for a loan with National Funding include legal services, tour guides, art galleries, car dealerships, airports, gas stations, mining, oil, goal, sports clubs, auction houses, and more. So if you fall into one of these niche categories, you’ll need to look elsewhere for your loan. 

Low Equipment Financing Funds: Equipment financing and leasing is one of National Funding’s primary service offerings. However, they don’t offer large sums of capital when you compare this to other lenders on the market. You can use National Funding to get up to $150,000 for new or used business equipment with no money down. 

While this is plenty of money for some small businesses, other owners who need lots of heavy machinery will quickly exceed these limits. If you need equipment financing for $250,000 or $500,000+, you’ll need to look elsewhere.

High Borrowing Costs: Interest rates on some loans from National Funding can be higher than other lenders. Rates typically range from 15% to 30%, with the average falling somewhere in the middle. You also need to consider the 1% origination fee. 

These high rates can add up quickly. But it’s nice that you can receive discounts by repaying your loan early to avoid high fees for the lifetime of the term. 

Frequent Payments: If you’re getting a short-term loan from National Funding, you’ll likely be on a weekly payment plan to repay what you’ve borrowed. Some businesses even have to repay the loan daily. This structure can be challenging for businesses with cash flow problems, slow seasons, and reserves that are already spread thin. 

Minimum Annual Sales to Qualify: To apply for a loan through National Funding, your business must have at least $250,000 in gross annual sales. While it’s not uncommon to see minimum sales requirements for small business loans, this is a bit steep compared to other lenders on the market. 

National Funding Options and Pricing

National Funding has a wide range of loans, borrowing options, and financing for businesses with different needs. These options are segmented across four main offerings—small business loans, working capital loans, short-term business loans, and equipment financing. We’ll take a closer look at the details, use cases, and loan options for each one below.

National Funding Small Business Loans

National Funding has provided lending options to more than 75,000+ small businesses with over $4.5 billion in funding. These loans are flexible and can be used for a wide range of different needs to keep your operation running smoothly. 

Small business loan from National Funding with man and woman wearing hard hats looking at a blueprint

Entrepreneurs rely on small business loans to update equipment, improve facilities, purchase inventory, contribute to marketing campaigns, and pay bills. These loans can help protect your personal finances and keep cash reserves in the bank—ensuring you still have cash on hand if something unexpected arises. 

You can borrow as little as $5,000 or as much as $500,000 with a small business loan from National Funding. Just fill out a simple application, and you’ll likely hear back with a decision within 24 hours. 

National Funding Working Capital Loans

Working capital loans from National Funding are a fast and easy way for businesses to get cash to manage extensions. They’re great for keeping your business stable when sales are slow or when reserves are tight—ensuring you can keep the lights on and your staff paid.

Working capital loan from National Funding with a man in a blue dress shirt looking at boxes in a warehouse

These loans are ideal for punching inventory, repairing equipment, making sure your employees get paid on time, and more. A working capital loan can be a lifeline for your business, preventing a snowball effect during tough times. 

You can get a working capital loan of up to $500,000 from National Funding without having to give up equity to investors or secure your loan with collateral. Apply today and find out if you qualify in 24 hours. 

National Funding Short-Term Business Loans

As the name implies, short-term loans are made to handle immediate business needs. The idea here is to get a loan amount to handle something specific and pay it off as quickly as possible—usually within a year. 

Short-term business loans from National Funding with a male and female mechanic looking under the hood of a car

The short-term loan options from National Funding range from six to 18 months. It’s an easy way to cover expenses during a slow season, handle unexpected repairs, and more. Let’s say you get a past-due tax bill. A short-term loan can help you pay that off immediately and still keep your existing cash to manage day-to-day operating expenses. 

You can get a short-term loan from National Funding for up to $500,000 and pay it off quickly through fixed, automatic payments every week.

National Funding Equipment Financing and Leasing

For businesses that need to purchase heavy machinery, forklifts, medical equipment, and similar tools, National Funding has specialized funding options to accommodate your needs. 

Equipment financing from National Funding with a blue-collar worker in front of a computer

Whether you’re purchasing or leasing equipment, you can use these loans for any type of new or pre-owned piece of equipment. With National Funding’s lowest payment guarantee, you can rest easy knowing that you’re paying the lowest monthly payment for your loan. So if you’re starting work on a new job site and can’t move your machinery away from another job, an equipment financing loan makes it easy for you to grow—all with no money down.

To qualify for equipment financing of up to $150,000 from National Funding, you’ll need a FICO score of at least 575 and an equipment quote from the vendor. You also must be in business for at least six months to apply.

National Funding in Summary

National Funding is a solid online loan solution for any business seeking a small business loan, working capital loan, short-term loan, and equipment financing loan. They’re a great option for small business owners who don’t have any assets, as you’re not required to secure the loan with collateral. The application process is quick and easy, and won’t impact your credit score.

For those of you looking for equipment financing options, National Funding offers a low payment guarantee. So if you find a lower monthly payment elsewhere, they’ll beat the rate or pay you $1,000 (assuming it meets eligible terms). 

If you want to compare other lending options, check out our reviews of the best small business loans for more information. The list contains our top recommendations, like Lendio, which is perfect for comparing different financing options from a single application. OnDeck is great for businesses that want same-day funding, and Bluevine is perfect for lines of credit with low interest rates.



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