National Funding Review 2024

National Funding is one of the most prominent lenders in America. Operating for more than 24 years, this company specializes in serving small businesses.

National Funding offers flexible terms even to borrowers with imperfect credit scores, and these loans come with no collateral requirement.

National Funding Overview

San Diego-based National Funding has provided loans for small and medium-sized businesses across the country since 1999. With its subsidiary, Quick Bridge Funding, this company has provided over $3.5 billion in funding for 60,000 American businesses so far. It has been at the forefront of specialty finance in the United States, providing finances to borrowers in many different industries.

National Funding has consistently ranked among the leading alternative US-based lenders and was featured in the San Diego Business Journal’s Fastest Growing Companies for more than half a decade. In short, this is a company that knows how to provide small business lending solutions.

This is a direct lender, so you won’t have to jump through any hoops with middlemen or third-party platforms. It has lenient requirements for borrowers as well. With National Funding you needn’t worry about being rejected just because of your credit score.

Loans at National Funding come with immediate fees. Specifically, there is an origination fee – a flat 2% charge based on the amount of money you’re being lent. Inquiring about the loan, registering on the site, and browsing the offers is completely free.

Even better, this company doesn’t require collateral – but you’ll need to sign a personal guarantee in case you fail to repay the loan.

National Funding Financing Types

National Funding is all about loans for small businesses. Companies can borrow up to half a million dollars with short payment terms. There are not many financing options availabe – only three. Each has distinct restrictions.

Small Business Loans

National Funding’s short term loan is the most popular and versatile option. Funds can be used for almost any purpose. The maximum amount for short-term business loans is $500,000. Your business should have no bankruptcies in the previous year, and should meet these additional requirements:

• Credit score of 500 or higher
• Minimum annual revenue of $100,000
• At least one year in operation

Funding for Essential Businesses

Once National Funding gets your application, it can approve the loan depending on the industry your business is operating within. The highest loan amount is $300,000, but some businesses may be allowed to request higher loans based on National Funding’s estimate. In order to qualify, your business must meet the small-business loan requirements, and fall into one of these categories:

• Health care
• Construction
• Hardware or a convenience store
• Electrical and plumbing
• Legal services
• Agriculture
• Gas station

Equipment Financing and Leasing

Getting a new cement mixer for your construction company or a fridge for your gas station can be achieved through National’s small loan for equipment. Up to $150,000 can be requested, with the fastest approval times of all the loans the company provides. The same requirements apply here, and the equipment you’re purchasing (new or pre-owned) serves as collateral until you pay back the loan.

National Funding Application Process

To get a loan, you’ll need to go through a few easy steps. Before applying with National Funding, you’ll need to meet certain criteria. Your business needs to be in operation for more than a year with an annual gross revenue of at least $100,000. You must not have filed bankruptcy in the previous 12 months and you must have no other loans outstanding.

You need to have a personal credit score of at least 500 for your business to qualify.

The fastest way to get a loan through National Funding is via the website. Applying for a small business loan can be done by following these steps:

• From the homepage, click Apply Now.
• Fill out your contact information and business name.
• Upload business account statements and digitally sign the document.

What Information Do I Need to Apply?

The application is divided into several stages. The first stage requests some basic information in order for you to open an account on the site:

• Business and DBA name
• Business phone number
• National Funding card (if you have one)
• Time in industry
• Annual gross sales
• Business address

This is just the onboarding process, after which you will be required to fill out a prequalification form with the following information:

• Personal address and phone number
• Social Security number
• Date of birth
• Digital signature
• Bank statements from the last three months

National Funding will review this information to verify the identity of your business. Then it checks your eligibility for a loan. If you have qualified, you will receive the news via email. Applying for a loan or failing to qualify won’t affect your credit score. If your funding request gets rejected, you can re-apply in 30 days.

One of the great things about this company is that its agents are available to answer questions from the very beginning, not just after you’ve already signed the papers and received money. National’s finance advisors can help you choose the appropriate funding for your business and make the onboarding process easier.

In-Depth Presentation of National Funding Features

Tens of thousands of small businesses have used National Funding’s services in the past. While the borrower doesn’t offer a huge variety of loans, its three offers are first-rate. These short-term loans for growing companies come with fast advance funding and low credit-score requirements.

A loan can range from $5,000 to $500,000 and a small business can pay it off between four months and five years. The only National Funding complaints we’ve seen online are about the origination fee and higher-than-average rates. High costs come with the territory for this sort of loan, especially when cash is available just 24 hours after approval.

Details on loan rates and terms are a little hard to find on the website. You need to initiate the funding process to find this information.

Loan Amount and APR Details

National Funding’s rates aren’t as low as those you’d get from a bank, but you don’t need to provide collateral.

• Loan amount: $5,000 – $500,000
• Total interest rate: 15% – 35% APR
• Fees: 2% origination fee
• Loan term: four to 60 months
• Repayment options: daily, weekly

A great benefit of borrowing from National Funding is that everything is automated. Your payments go through an automated clearing house that holds back a percentage of your company’s daily credit card revenue and makes payments automatically. One thing the NationalFunding website is missing is a short term business loan calculator – a tool that could help you estimate payments in advance.

Since there isn’t an option to customize your loan or calculate the rates in advance, it all depends on National’s best estimate of your current financial situation. The website states that some businesses will have a higher chance of getting approved, especially those in essential industries.

Eligible and Non-Eligible Businesses

National Funding is one of the best lenders if your business falls into a “high-risk” category. This lender won’t outright reject your application based on the industry you’re in, nor will it limit its offer. But you might not get top terms and rates, since businesses in this category tend to have more trouble paying off loans.

National Funding might reject your application in the following cases:

• Organization has bad credit
• No credit history
• Company is a startup
• Company is in a volatile industry (adult industry, tobacco, gambling)
• Unstable income or irregular income periods

National Funding Repayment Terms

Considering how high the interest rates can be, it’s a relief that the company offers a discount for early payments. If you’re able to clear your loan earlier than anticipated, you’ll be rewarded a 7% discount on the remainder of your fee. On top of that, your credit score is likely to improve, as National Funding reports prepayments to credit bureaus.

A 100% win-win situation in our books.

Terms range from four months to one-year and five-year plans. Payments are automated and processed on a daily – sometimes weekly – basis. Exact conditions of the loan depend on the state of the business that is applying for funding.

The Bottom Line

National Funding is lending money to a lot of small and medium-sized businesses every year, and your company could become one of them. The onboarding process is fast and presented in easy-to-follow steps, while friendly support staff can help you with any issues you might stumble upon.

This is a direct lender with a high approval rate – above 60% – that supports many businesses that are unable to get funding from banks and other traditional financial institutions.

While it does have higher than usual rates on short-term loans, you’ll find plenty of benefits from working with this lender in our review – prepayment bonuses, fast deposits, and lenient credit requirements, to name just a few.