National Funding Business Loan Review
 | APR range: Factor rates starting at 1.11 Loan amounts: $5,000 to $500,000 for short-term loans; $5,000 to $150,000 for equipment financing Our verdict: National Funding offers two main financing options for small business owners: short-term loans and equipment financing. It may be a good choice for young businesses that have strong, steady revenue. But while credit requirements are also on the lower side, its website is unclear when it comes to its financing options, rates and fees. |
Pros and cons of National Funding
Pros
- Quick funding times
- Accepting of business owners with less-than-perfect credit
- Offers an early payoff discount for paying off your loan ahead of schedule
- No down payment required
Cons
- Confusing website and unclear financing options
- Limited loan products
- Rates and fees not readily available online
- Payments for short-term loans must be made on a daily or weekly basis
National Funding small business loans review
If your business has been operating for at least six months and you’re looking for speedy funding, National Funding could be a solid option. This online lender offers short-term business loans of $5,000 to $500,000, as well as equipment financing of $5,000 to $150,000. It may be particularly attractive to borrowers with fair credit — small business owners can get approved with a personal credit score of 600 or higher.
However, your business will have to perform relatively well — the minimum annual revenue requirement is $250,000 for short-term loans, which might feel steep for some new business owners. (For equipment financing, the minimum is variable, as the lender may consider other factors in its decision.)
Further, you should also be prepared for a potentially frustrating experience on National Funding’s website. The lender boasts a wide range of funding options, from industry-specific financing to working capital loans. In reality, it only offers two choices — short-term loans and equipment financing.
Its rates and fees are also less than transparent. The lender uses factor rates — not interest rates — to calculate the cost of borrowing. This means that when comparing National Funding to lenders that advertise APR or simple interest rates, you’ll need to calculate the total cost of borrowing for all options to find the best deal.
But if National Funding ultimately feels like a good fit, it’s possible to receive funding with no down payment — and you can enjoy an early payoff discount to boot.
- You want quick financing. Funding can be available in as little as 24 hours of approval, which may be appealing to business owners who need fast capital.
- You’re a business owner who doesn’t have stellar credit. National Funding requires a minimum credit score of only 600.
- You’re looking for a short-term business loan or equipment financing. These are the two main types of financing National Funding offers.
National Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Starting factor rate | Fees |
|---|---|---|---|---|
| Short-term small business loans | $5,000 to $500,000 | 4 to 24 months | Factor rate: 1.11 | An origination fee applies, along with a potential $50 late fee |
| Equipment financing | $5,000 to $150,000 | 24 to 60 months | Varies | An origination fee applies, along with a potential late fee equal to 15% of the payment amount |
Short-term small business loans
This is one half of National Funding’s financing options. You’ll find an exhaustive list of different loan types on its website, including working capital loans and loans that are designed for many different professional industries. This can be confusing — in reality, though, each one is simply a short-term loan that can be used for any business purpose.
These include:
- Regular business operations
- Payroll
- Sales and marketing
- Inventory
- Debt refinancing
Qualified borrowers can receive anywhere from $5,000 to $500,000, with terms ranging from 4 to 24 months. Instead of charging an interest rate, National Funding uses factor rates that you can use to calculate your loan costs. Just keep in mind that National Funding also charges an origination fee, though the amount is unclear.
Equipment financing
National Funding provides short-term funding to help business owners buy or lease essential equipment. That can include vehicles, large machinery, hardware and more. With National Funding equipment financing, the equipment itself serves as collateral for the loan. The lender also doesn’t require a down payment.
Eligible small business owners can receive $5,000 to $150,000 in financing, terms range from 24 to 60 months and the rate for equipment financing is also variable. An origination fee applies, but the amount is not disclosed.
National Funding borrower requirements
| Minimum annual revenue | $250,000 for short-term loans; varies for equipment financing |
| Minimum time in business | 6 months |
| Minimum credit score | 600 |
In terms of getting approved for a small business loan, National Funding stands out for its relatively flexible lending requirements. Businesses that have been operating for at least six months are able to apply, assuming they’re bringing in annual revenue of $250,000 or more. Still, you won’t need an off-the-charts credit score to qualify — a score of 600 will do. (For context, some lenders require a credit score of 670 or higher.)
Required documents
National Funding isn’t especially clear about what documents you’ll need to apply for equipment financing. For short-term loans, though, you’ll need to supply four months of business bank statements, as well as a completed application. From there, you may need to provide other items, like tax returns, proof of ownership or financial statements.
Alternatives to National Funding
| National Funding | iBusiness Funding | Taycor Financial | |
|---|---|---|---|
| Minimum credit score | 600 | 640 | 500 to 670 (will depend on financing type) |
| Loan products offered |
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| Time to funding | As soon as 24 hours of approval | Loan approval generally takes anywhere from a few weeks to several months | SBA loans: 1 to 6 months Other loan types: 4 to 24 hours |
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| Maximum loan size |
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| Minimum annual revenue |
| $50,000 |
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National Funding vs. iBusiness Funding
iBusiness Funding offers a wider variety of financing options, including SBA loans, which typically come with lower interest rates. Qualified borrowers can also secure larger loan amounts — up to $25,000,000 with a USDA loan from iBusiness Funding.
But funding times lag behind National Funding. In some cases, the loan approval process could take several months to complete. iBusiness Funding also requires a higher credit score, and its Interest rates on non-SBA loans are also unclear. But if you meet the eligibility requirements and aren’t in a hurry, going with iBusiness Funding might make the most sense for your funding needs.
Read our review of iBusiness Funding
National Funding vs. Taycor Financial
Taycor Financial isn’t quite as transparent as National Funding when it comes to credit score requirements and funding times. Its loan sizes are also a bit lower than what National Funding offers, and you’ll have to reach out to Taycor directly to receive a quote. Still, this lender has made a name for itself within the equipment financing space, and it also offers lines of credit. These allow business owners to borrow money, and pay interest on those funds, on an as-needed basis. The right fit for you will depend on your business financing needs.
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