Finimpact

National Funding Review: Rates, Fees, & Eligibility Discovered

National Funding is a to-rated small business lender that lets borrowers apply for a loan with no impact to their credit and offers funding in as little as 24 hours. Its flexible loan terms and amounts make it ideal for businesses small and large.

nationalfunding
nationalfunding
3.5
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Min. Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $250K-$500K
Loan Repayment
Loan Repayment 2-5 years
TJ Porter
Written by:TJ Porter
Personal Finance Writer

National Funding business loans come in two primary forms: small business loans for purposes such as working capital for inventory, payroll, marketing, taxes, and other reasons, and equipment financing or leasing loans to help businesses purchase expensive equipment.

National Funding small business loans target many industries, including trucking, agriculture, restaurants, and construction. This National Funding review will help you decide whether the lender is right for you.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

National Funding gets a 3.0 for Loan Features. This slightly below average score reflects standard loan terms (2-5 years) and relatively low loan limits ($250K-$500K). The score is strengthened by accommodative repayment options.

Pros
Fast funding
Lenient qualification requirements
Those with bad credit can apply
Early payment discounts
No collateral needed
Minimal paperwork
Cons
Factor rates can be expensive
Some additional fees may be charged
Frequent repayments

What Is National Funding?

Funding options are kept pretty simple here with just three types of loan on offer; term loans, bad credit loans and equipment leasing. You won’t pay compounding interest rates on a National Funding Loan. That’s because its products establish a fixed fee structure using factor rates. This means you’ll be charged a fixed percentage, usually between 17%-36%, of your total loan value, which is then spread over the full duration.

While this might sound a little higher than other lending platforms, there is a simple explanation for that. These loans are intended for those with poor credit and are scheduled to be paid off within 18 months. This makes it a great choice for anyone that’s looking to build their credit scores or those that need fast injections of cash based on lenient requirements.

National Funding Loan Features

National Funding offers loans for small businesses as well as equipment financing to help companies purchase expensive equipment. It also has special offers for businesses that have poor credit, giving those companies a chance to qualify for a loan and improve their credit score.

Small Business Loans

National Funding has offered more than $4.5 billion in loans to over 75,000 small businesses. The application is easy and you can get the cash in as little as one day. Unfortunately, the lender is not transparent about the details of its loans. You have to start the application process to get full details

Loan Feature

Amount

Term length

Four months to two years

Repayment period

Daily or weekly

Min - Max amount

$5,000 - $500,000

Business Loans for Bad Credit

While this type of loan has lower eligibility criteria, it comes with fairly high interest rates and short repayment terms. This is done in order to reduce the level of risk on the lender. We’d recommend starting out with a small amount you’re sure you can repay. Not only will this help with financial planning, but you’ll also have a chance to boost your credit score in the process.

Loan Type

Business loans for bad credit

Term length

6 to 15 months

Repayment period

Monthly

APR range

Factor rates starting from 1.17

Min - Max amount

$5,000 - $500,000

Equipment Financing and Leasing

Equipment financing and leasing loans let you lease or buy new or pre-owned equipment for your company. The credit requirements for the loan are low, so it’s easy for newer companies to get funding to help grow the business.
These loans take slightly longer to get approved, but have no down payment requirement. Another bonus is that you can get a discount if you pay the loan off ahead of schedule.

Loan Feature

Amount

Term length

Two to five years

Repayment period

Monthly

Min - Max amount

Up to $150,000

National Funding Interest Rates and Fees

National Funding places itself as a lender that makes it easy for businesses with poor credit to qualify for loans. In fact, the minimum credit score for some of its loans is as low as 575.

What that means is that borrowers can expect National Funding interest rates and fees to be higher than the rates offered by other small business lenders. On the bright side, the lender focuses primarily on short-term loans, so there won’t be a significant amount of time for interest to accrue.

An important note is that National Funding isn’t transparent about its rates and fees. You have to go through the application process before you can see what a loan will cost.

Small Business Loan

National Funding doesn’t advertise the rates and fees it charges for its small business loans.

Rate/Fee

Amount

Origination fees

Not disclosed

Prepayment fees

Not disclosed

Late payment fees

Not disclosed

Maintenance fees

Not disclosed

Interest Rates - Minimum
Not disclosed

Interest rates Maximum

Not disclosed

Business Loan for Bad Credit

Loan type

Small business loan

Origination fees

2% plus a one-time fee of between 17% - 36% of the loan total

Prepayment fees

Not disclosed

Late payment fees

Not disclosed

Maintenance fees

Not disclosed

Interest rates

Factor rates starting from 1.17

Equipment Financing and Leasing

National Funding does not advertise the rates and fees for its equipment financing and leasing loan. However, it does come with a lowest down lease payment guarantee. The company gives you a $1,000 guarantee that its offer will have the lowest lease payment of any lender.

Rate/Fee

Amount

Origination fees

2% plus a one-time fee of between 17% - 36% of the loan total

Prepayment fees

Not disclosed

Late payment fees

Not disclosed

Maintenance Fees Not disclosed
Interest Rates - Minimum Not disclosed
Interest Rates - Maximum
Not disclosed

How to Qualify for a National Funding Loan

National Funding has a high acceptance rate, and welcomes those with credit scores of 500 and above--which is lower than most other loan providers. In addition, you’ll need to have an annual income of $100,000 and have at least $1,500 in the bank. Bear in mind that if you have a bankruptcy on your record within the last 12 months, you won’t be able to apply.

Beyond these criteria, the platform is actually very lenient and takes into account multiple different factors when determining your eligibility. You’ll be assigned a dedicated loan specialist when you apply that’ll walk you through the process and give you advice on how to improve your eligibility too.

Criteria

All loan Types

Minimum credit score

600+

Minimum annual revenue

$250,000

Minimum time in business

6+ months

National Funding Loan Application Process

If you’ve decided that a National Funding loan is right for you, you’ll have to fill out an application. Like any loan application, you’ll have to fill out a form with some basic financial information.
First, you’ll have to give them your name and contact info.



Next, you’ll need to provide an estimate of your credit score.

Depending on the answer you select, you’ll get preapproved or see a page explaining why you’ve been declined.

If you’re pre-approved, you may be passed to a partner, like Fundwise, to answer some additional questions.






National Funding claims that you can get a quote for a loan without it impacting your credit score or resulting in a hard pull on your credit report. The application process is relatively standard, but if you choose to go through with the loan offer, National Funding reviews and makes a lending decision in as little as a day

How Does National Funding Determine the Loan Amount?

National Funding doesn’t disclose its full methodology for determining your rates and terms. It will, however, be primarily based on your credit score. Additional factors will be taken into account, such as your record of income, tax returns, and general financial health.

For those taking out an equipment loan, your terms will be tied directly to the asset you’re buying. This means you’ll receive low rates as long as you put the equipment down as collateral to cover the loan.

National Funding has been recognized as one of the fastest-growing small business lenders in the country by both the San Diego Business Journal and Inc. 5000. The company may still be small when compared to the big names in the business, but this California-based organization punches above its weight on the national scale.

National Funding Customer Support

If you have any queries, you can get in touch via a helpline which is open between 7:30 AM to 4:30 PM Pacific Time, Monday through Friday. Or, you can reach out via email. Plus, you’ll be assigned a dedicated loan officer that can deal with any specific loan query you have once you're accepted.

National Funding Customer Reviews

National Funding has almost 1,400 reviews on TrustPilot with an average rating of 4.6 out of 5. This is quite impressive, especially for a bad credit lender, and is a testament to the platform’s durability and its time in the market.

A lot of the reviews focus on how helpful the organization is in getting funding to applicants after being rejected by traditional lenders. Others have praised the smooth and intuitive application process and the fact that funding can be arranged so quickly.

National Funding is active across social media and regularly engages with customer queries and complaints too. Some users have commented on how high the rates and fees are here, but these are always made clear by the platform before any agreement is signed. For this reason, we’d always recommend having a clear budget and knowing exactly what you can afford each month before you apply.

The positive reviews are related to

The negative reviews are related to

A quick and easy loan approval process

High cost of the loan

Great for those with bad credit

Expensive fees

A helpful customer service team

Some loans seem to take a while to approve

National Funding Perks and Bonuses

National Funding isn’t particularly transparent with the terms of its loans, but there are some perks to working with them.

Flexibility:

National Funding business loans are highly flexible. You can get a loan even if you have poor credit and the requirements for your business’s income and how long it has been established are relatively light. You can even get financing for an equipment lease with no down payment. The company is also flexible when it comes to how you use your loan. You can lease new or used equipment or use the small business loan for anything from marketing expenses to payroll costs. Another perk is that if you build a strong payment history, National Funding will let you extend the term of your loan.

Transparency:

One place where National Funding falls short is in transparency. It offers almost no details about the cost of its loans or other features until you go through the application process and provide enough personal information for them to be able to call or email you. On the bright side, the company has an A+ rating from the Better Business Bureau and a 4.6 out of 5 from TrustPilot, showing that it’s a legitimate company and trustworthy enough to consider working with.

Technology:

National Funding has a fully online application process, which makes it easy to apply for a loan and get approved. However, there’s no online account portal or obvious way to access your account to make payments. The lender also lacks a mobile app, so you’ll be stuck dealing with the company from your computer.

Conclusion

If you’ve been struggling with cash flow issues and need funding fast, or you’ve been rejected by other lenders for having bad credit, then applying for a National Funding Loan could be the answer for you. The speedy application process, good customer service, and minimal paperwork requirements make it an attractive option for many small businesses.

However, if you’ve got good credit, you might want to try another lender first. Rates can be pretty high here and fees can be expensive. If you’re not careful, you could find yourself taking on a lot more debt than you can afford to repay.

If you’re worried about high payments, we’d recommend you talk to one of National Funding’s helpful service agents. They can walk you through exactly what sort of fees you can expect, how to budget appropriately, and whether or not these loans are right for you.

About the Author

TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me