National Funding

4/5 stars

An online lender that specializes in providing working capital loans and equipment financing for small and mid-sized businesses.

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Pros

Flexible Credit Requirements: Accommodates those with personal credit scores as low as 600.
Fast Funding: Potential to receive funds within 24 hours of approval.
Early Repayment Discounts: Offers financial incentives for early loan payoff.

Cons

Frequent Repayments: Requires daily or weekly payments, which may strain cash flow.
Opaque Pricing: Does not publicly disclose interest rates and fees; details are provided during the application process.
High Revenue Requirement: Requires a minimum of $250,000 in annual revenue, which may exclude smaller businesses.

The Bottom Line

National Funding has a steep $250,000 annual revenue requirement, but if you can meet it, this could be a good option for short-term loans.

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Loan Types

Term Loans

Designed to provide businesses with immediate funds to manage daily operations, cover unexpected expenses, or seize growth opportunities.

Loan Amount Range: $5,000 to $500,000.

Terms: Repayment periods range from 4 to 18 months.

Interest Rates: National Funding utilizes factor rates starting at 1.11. Unlike traditional interest rates, a factor rate is a multiplier applied to the loan principal to determine the total repayment amount. For example, a $100,000 loan with a 1.1 factor rate would require a total repayment of $110,000.
Repayment Schedules: Daily or weekly basis, allowing businesses to manage smaller, more frequent payments.

Equipment Financing and Leasing

Provides funds for businesses to purchase or lease new or used equipment essential for operations, such as machinery, vehicles, or technology.

Loan Amount Range: Up to $150,000.

Terms: Repayment terms range from 2 to 5 years, aligning with the expected lifespan of the equipment.

Interest Rates: Varies

Repayment Schedules: Typically made monthly, providing a predictable repayment structure.

Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.

Pricing information last updated March 3, 2025.

Qualifications

Time in Business: Minimum of 6 months
Annual Revenue: At least $250,000
Credit Score: 600 or higher (personal credit score)
Business Bank Account: Must have a business checking account
Cash Flow: Consistent cash flow to handle daily or weekly repayments

Application Process

The application process for a loan from National Funding is designed to be quick and straightforward, especially compared to traditional banks. Here’s what to expect:

Online Application:

Visit National Funding’s website and fill out a short application form.
You’ll need to provide basic business and personal information, including:

Business name, industry, and time in business.
Annual revenue estimate.
Desired loan amount.
Contact information.

Submit Financial Documents:

Typically, they ask for the last 4 months of business bank statements.
In some cases, they may request additional financial records like tax returns or profit-and-loss statements.

Loan Offer & Approval:

Once your application and documents are reviewed, you may receive a loan offer within 24 hours.
They’ll present the loan terms, including the loan amount, repayment schedule, factor rate, and any fees.
Review the terms carefully—National Funding is known for daily or weekly repayments, which may impact your cash flow.

Accept the Offer:

If you agree to the terms, sign the loan agreement electronically.
You may need to link your business bank account for automatic payments.

Receive Funding:

Funds are typically deposited within 24 to 48 hours after approval.
The speed is a big draw for businesses that need quick working capital.

Product Review

National Funding is an alternative lender that provides quick and accessible financing solutions for small businesses across various industries. Established in 1999, the company has extended over $4.5 billion in loans to more than 75,000 businesses nationwide.

Some of its key features include:

Diverse Financing Options: National Funding offers working capital loans and equipment financing, allowing you to find the right kind of loan for your needs.
Rapid Funding Process: A streamlined online application process allows you to receive funding decisions often within 24 hours. Once approved, funds can be deposited into the business’s account as soon as the next day.
Early Payoff Discounts: Unlike many online lenders, National Funding offers discounts for early repayment, which helps borrowers save on interest.
Industry-Inclusive Lending: Serves a wide range of industries, including retail, restaurants, construction, medical, and auto repair

Best for: Young Businesses with Strong, Established Revenue

Many lenders require at least two years in business before being eligible for loans, but National Funding only requires six months. This makes it a good option for newer businesses that haven’t been operating long enough to qualify for traditional loans. Note that it does mean that the loan usually comes at a slightly higher price with less favorable terms, but it unlocks a source of cash in the short term that could be worth it if you spend smartly. However, remember that there is a steep $250,000 annual revenue requirement that can be hard for unstable businesses to meet.

Overall, National Funding is best for small businesses that need fast, flexible financing with easy qualification requirements. It’s a strong option for businesses with fair credit, short-term funding needs, and no collateral but may not be ideal for those seeking low-interest, long-term loans.