National Funding small business loans review | finder.com

National Funding small business loans review

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Working capital loans and equipment financing for bad credit and high-risk industries.

National Funding is an alternative small business lender that works with a wide range of credit types and industries — including cannabis. How does it do this? It’s a provider that partners with alternative lenders for high-risk borrowers it isn’t equipped to take on.

It’s worth checking out if your business has had a hard time qualifying for funding in the past, though it’s hard to get an idea of the rates you’ll get if you work with a partner.

Product NameNational Funding Small Business Loan
Min Loan Amount$5,000
Max. Loan Amount$300,000
APR4%-8%
Interest Rate TypeFixed
Maximum Loan Term1 year
RequirementsBe in business one year or more and make at least $100,000 in annual sales. Other requirements are solicited for other types of loans.
  • +1 Year in business
  • Make at least $100,000 in annual sales

First, do I qualify?

National funding has different eligibility requirements for its many programs.

Working capital loan qualifications:
  • Be in business one year or more
  • Make at least $100,000 in annual sales
Merchant cash advance qualifications:
  • Be in business one year or more
  • Make at least $3,000 in monthly credit card sales
Equipment financing qualifications:
  • Be in business six months or more
  • Have a credit score of 620 or higher

What does National Funding offer?

National Funding offers working capital loans and long-term equipment financing both directly and through its network of lenders. Both come with APRs ranging from 4%-8%, including a 1%–3% origination fee. An origination fee of 1%–3% is standard, as many business lenders with this fee tend to charge between 3% and 5%.

National Funding’s working capital loans are short-term, unsecured loans that come in one lump sum of $5,000 to $300,000 that you pay back with daily repayments in 12 months or less. Through the term loan program, your business can also apply for a merchant cash advance on credit card sales with repayments deducted from your daily receipts.

National Funding offers both equipment financing and leasing on new and used equipment. Your business can borrow up to 400% of your equipment’s value and pay it back over loan terms of five years or more.

These rates and terms don’t necessarily apply to National Funding’s partner lenders, however. If you work in a high-risk industry like cannabis, it’s possible you’ll end up with less favorable terms. You also might want to do some research into the lender you’re connected with to make sure its terms and conditions work for your business.

We spoke directly with a representative from National Funding to gather up-to-date information about loan amounts, terms and APR ranges. Info on its site may vary from what you see in our review.

What makes National Funding small business loans unique?

National Funding working capital loans come with some of the most competitive rates for a short-term loan. It’s also more open to different types of industries than your typical business lender and even offers programs by industry type. Your credit score doesn’t matter for its term loans, though you’ll need a credit score of 620 or higher if you’re applying for equipment financing.

What are the benefits of a National Funding business loan?

  • Competitive rates. If you can qualify for a business loan directly through National Funding, your business might end up with some of the most competitive rates for a business loan out there.
  • Fast funding. Once approved, you could get your funds as soon as the next business day.
  • Good credit not necessary. There’s no minimum credit score for its term loans and equipment loans only require fair credit.
  • Most industries accepted. Even cannabis businesses can qualify for a loan through National Funding’s lending partners.

What to watch out for

  • Doesn’t directly fund all loans. If you’ve had a hard time getting a business loan from other online lenders, there’s a chance you won’t be able to qualify for National Funding’s competitive rates.
  • Daily repayments on term loans. This can be difficult for seasonal businesses to afford if they don’t have a consistent daily cashflow.
  • Short terms mean higher immediate cost. A loan term under 12 months can result in some costly daily repayments.
  • Site appears to be out of date. We received details on loan amounts and terms by calling and speaking with a National Funding representative, and they differ from the info you’ll find on its site.

More alternative business loan providers to compare

Rates last updated August 14th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Diamond Business Loans
Grow your cannabis business with a line of credit or fixed-term business loan.
$25,000
$150,000
Personal credit score of 680, no late payments or bankruptcies.
GoKapital
Find the funding your business needs without the worry of meeting a minimum credit score.
$10,000
$5,000,000
Minimum of $10,000 average monthly revenue. At least four months of business bank account statements.
Green Leaf Money
Connects cannabis businesses with lenders willing to work with them across the country.
$25,000
$10,000,000
Documented income and records of your business spending and accounts.

Compare up to 4 providers

Is National Funding legit?

National Funding is, though it’s hard to tell if its partners are — it doesn’t list them online. It’s one of loan connection service LendingTree’s top partners when it comes to business loans. As of May 2018, it has an A+ rating from the Better Business Bureau, accredited since 2013. It also gets an average 9.3 out of 10 rating from Trustpilot users.

Borrowers were most enthusiastic about its customer service, even mentioning National Funding employees by name. Not all borrowers were happy with their experience, however. Some claimed they were misled into thinking they were going to get lower rates than they actually received. Another reviewer complained that they’d gotten spam calls from the lender, which used a geolocation system that makes the call look like its coming from a local phone number.

How do I apply?

First, confirm you’re eligible.

To get a term loan, your business must:

  • Be at least one year old. In other words, startups can’t qualify for this loan.
  • Generate at least $100,000 in yearly sales. Or, to qualify for a merchant cash advance, your business must make at least $3,000 in monthly credit card sales.

To get an equipment loan, you must have:

  • A business at least six months old. Equipment financing is available to younger businesses.
  • A credit score of 620 or higher. Since equipment loans come with longer terms, business owners need at least fair credit to qualify. The higher your score, the more likely you are to get approved with competitive rates.

You can apply for a National Funding business loan in two ways: Online or over the phone. To apply online:

  1. Go to National Funding’s website and click Apply Now.
  2. Fill out the required fields with information about your business’s needs. Review the confirmation and the terms and submit.
  3. Review your offers if you’re preapproved and follow National Funding’s directions to complete your application and submit documents.
  4. It takes a couple of days for the underwriting team to process your application and give you a final offer.
  5. Review and sign your loan documents.

Once you’re approved, you can get your funds in as little as one business day.

What documents do I need to apply?

National Funding generally asks for limited documentation. But like with eligibility, its business loans, merchant cash advances and equipment financing require different types.

  • Small business loan. Three most recent business bank statements.
  • Merchant cash advance. The past four months of credit card payment statements.
  • Equipment financing. A quote from a vendor.

If your business qualifies for financing from a different lender, it might be required to submit additional documents.

Does my business need a bank account?

It does. National Funding relies on your business’s bank account information during the underwriting process. It also collects automatic daily repayments through ACH, which requires a bank account.

I got the National Funding business loan. Now what?

National Funding’s loans come with automatic repayments, so you don’t have to worry about manually making a payment every day. If you’re borrowing from one of its partners, ask if you can set up automatic repayments — it can make paying off your loan a lot easier.

Watch your account and your loan balance. If you notice anything wrong or think you’ll have trouble making a repayment on time, reach out to customer service by calling 888-733-2383.

Bottom line

National Funding could be a good resource for businesses that typically don’t qualify for a loan. But don’t let the low rates fool you — riskier businesses might not qualify for a loan directly through this lender. Want to compare more lenders or learn about how business loans work? Check out our business loans guide.

Frequently asked questions

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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