National Funding: Fast, Accessible Equipment Financing and Short-Term Loans
National Funding offers fast short-term business loans and equipment financing. But transparency on its website could be improved.
The bottom line:
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
Loan details
Min. Loan Amount
$5,000
Min. Term Length
24 months
Max Loan Amount
$150,000
Max Term Length
5 years
Qualifications
Min. credit score
600
Min. Time in Business
6 months
Min. Annual Revenue
$250,000
Pros & Cons
Pros
Funding in as little as 24 hours.
Prepayment discounts available.
Offers loans to startups and borrowers with bad fair credit.
No collateral or down payment required.
Cons
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Requires higher annual revenue than other online lenders.
Can't be used to build business credit.
Charges an origination fee.
National Funding is an online lender that issues small-business loans. The company offers short-term, working capital loans as well as equipment financing and leasing.
National Funding has flexible eligibility requirements, a simple application process and a fast funding timeline. This lender charges interest as a factor rate, however, which makes it difficult to compare costs with those of other lenders.
Consider National Funding if you:
- Need cash fast. National Funding offers a simple application process with minimal documentation required. You can apply, receive a decision and get funding in as little as 24 hours.
- Can repay the loan early. You may be able to receive a special discount for repaying your loan early.
- Don’t meet the eligibility requirements of other lenders. National Funding considers borrowers with at least 6 months in business as well as those with fair credit. (FICO defines fair as a range between 580 and 669.)
» Have bad credit? Check out more options with our best business loans for bad credit.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
National Funding loan details
National Funding offers short-term business loans, which can be used for things like payroll, inventory and working capital needs.
The lender also offers equipment financing and equipment leasing. These options can be used to purchase or lease used or new equipment. If you’re applying for equipment financing or leasing, you’ll need to provide an equipment quote from a vendor as part of your application.
National Funding equipment financing and leasing
| Equipment financing and leasing | |
| Loan amount | $5,000 to $150,000. |
| Estimated factor rate | National Funding quotes interest as a factor rate — which starts at 1.1 for borrowers with strong credit. |
| Fees | Origination fee, which varies. |
| Terms | 24 to 60 months. |
| Repayment schedule | Monthly. |
| Funding speed | As fast as 24 hours. |
National Funding short-term loan
| Short-term loan | |
| Loan amount | $5,000 to $500,000. |
| Estimated factor rate | National Funding quotes interest as a factor rate — which starts at 1.1 for borrowers with strong credit. |
| Fees | Origination fee, which varies. |
| Terms | 4 to 24 months. |
| Repayment schedule | Daily or weekly. |
| Funding speed | As fast as 24 hours. |
Where National Funding stands out
Quick application and funding
National Funding’s loan application is quick. Business owners can apply online in minutes and get a decision within 24 hours. Plus, approved loans may be funded as soon as the next business day. A business loan from a traditional bank takes days or even weeks to get from application to money in the bank.
💬 From our Nerds: Even when you need funding quickly, don’t neglect this step
"The worst thing you can do when you’re in a rush to receive financing is neglect to read through your loan terms and agreement before you sign. By doing so you run the risk of being caught off guard by a payment date, or even agreeing to something that isn’t in your business’s best interest. If you need help understanding your loan agreement, you can ask for clarity from your loan officer. A reputable lender will want to help you understand."
Olivia Chen, lead writer, Small Business
Easier for businesses to qualify
Small-business owners typically need a credit score of 690 or higher to qualify for an SBA loan or to secure a loan through a traditional bank. National Funding offers business loans to borrowers with a personal credit score as low as 600.
National Funding can also be a good option for startup companies because the lender requires a minimum of only 6 months in business to qualify.
Early repayment discount
Instead of charging prepayment penalties, National Funding offers a discount if borrowers repay their loans early. The lender will provide information about this in your business loan agreement. To receive the discount, you must pay off your balance in full and be current on your payments.
Where National Funding falls short
Daily or weekly repayments
National Funding’s short-term loans require daily or weekly payments. This frequent payment schedule can put a strain on business’s cash flow.
Charges interest as a factor rate
National Funding charges interest on its business loans as a factor rate. To calculate the total amount you’ll need to repay, you must multiply the factor rates by your loan amount.
For instance, say you have a 12-month, $20,000 loan with a factor rate of 1.1. To calculate the total cost of the loan, you’d multiply $20,000 by 1.1 to get $22,000.
Compared with more traditional interest rates, factor rates can be hard to understand. And can make it more difficult to compare loan costs across multiple lenders. Converting your factor rate into an annual percentage rate, or APR, can give you a better sense of your borrowing costs.
Lack of website transparency
National Funding’s website can make it difficult to determine exactly what type of loan products the lender offers. For example, the main navigation allows you to browse “Loans & Financing,” which lists: Small Business Loans, Working Capital Loans, Short Term Business Loans and Equipment Financing and Leasing. Based on this list, you may believe that National Funding offers four types of loans.
When you investigate further, however, you’ll find that the lender offers only short-term loans and equipment leasing and loans. The website also displays loans based on industry (e.g., construction loans, medical practice loans, agriculture business loans). This can cause a similar type of confusion about the actual financing options National Funding offers.
Alternatives to National Funding
Triton Capital
Triton Capital
Triton Capital - Equipment financing
NerdWallet Rating
4.0
Min Credit
575
Apply now with Fundera by NerdWallet
Consider Triton Capital over National Funding if you:
- Need a higher equipment loan amount.
- Have a lower personal credit score than NF requires.
If you’re looking for an alternative equipment lender to National Funding, consider Triton Capital. Triton offers equipment loans up to $250,000 with repayment terms up to 60 months. Unlike National Funding, however, Triton Capital does not offer equipment leasing.
With Triton, you can finance used or new equipment, and interest rates start as low as 5.99%. You can apply for equipment financing online with minimal documentation and receive approval within two to four hours. Triton is typically able to provide funds within one to two business days after approval.
To qualify for an equipment loan from Triton, you’ll need a minimum credit score of 575 and annual revenue of $250,000 or more. Generally, Triton prefers that companies have 24 months in business.
OnDeck
OnDeck
OnDeck - Online term loan
NerdWallet Rating
4.8
Min Credit
625
with Fundera by NerdWallet
Consider OnDeck over National Funding if you:
- Have lower annual revenue than NF requires.
- Want to build business credit (OnDeck reports on-time payments to credit bureaus).
OnDeck offers short-term business loans with fast funding times and flexible qualification requirements. You can get a short-term loan of up to $400,000 with repayment terms up to 24 months.
Like National Funding, you can apply for a loan from OnDeck in just minutes and receive approval the same day. Funds can be available in as little as 24 hours.
To qualify for an OnDeck loan, you’ll need a minimum credit score of 625, at least 12 months in business and a minimum annual revenue of $100,000.
Frequently asked questions
Yes. National Funding is a privately held small-business financing company based in San Diego. The company has been in operation since 1999 and accredited by the Better Business Bureau since 2013. National Funding has an A+ rating with the BBB and 4.6 stars on Trustpilot.
No. When you apply and get a loan with National Funding, the company will only perform a soft credit inquiry so that your credit score is not affected. If National Funding refers you to one of its lending partners, however, some of those companies may do a hard credit pull.
National Funding Ignite is a direct-mail campaign that the lender uses to encourage small-business owners to apply for working capital loans. The mail campaign includes a picture of a card that looks like a credit card, called the Ignite card. When business owners apply for a loan on the National Funding website, they can input the number on the Ignite card to link their application to the pre-qualification card.