National Funding Review - What to Consider Before Taking a Business Loan From Them

— Review updated Nov 2025

- Nov 11, 2025

National Funding excels at providing accessible capital for businesses needing quick funding with less-than-perfect credit.

Their strength lies in their speed and flexibility, balancing higher costs with convenience.

While not the cheapest option, they offer valuable financing solutions for businesses that prioritize fast access to capital over absolute lowest cost.

Read the full review

National Funding At glance

Popularity

The popularity score indicates the percentage of customers choosing this company the last 90 days.

Customer Experience

Small business owners frequently praise the streamlined application process and responsive loan specialists. While the interest rates are higher than traditional bank loans, most clients appreciate the accessibility and quick funding turnaround.

Company name

National Funding

Website

https://www.nationalfunding.com

Phone

1-888-733-2383

Email

info@nationalfunding.com

Address

9820 Towne Centre Drive, San Diego, CA 92121

Pricing

Factor rates starting at 1.11% with no prepayment penalties offer good value, though higher than traditional banks. Transparent early payoff discounts offset the relatively higher costs compared to conventional lenders.

Customer Support

Quick response times (within hours) and knowledgeable representatives provide strong assistance. Representatives are courteous and patient with explanations, though extended hours across time zones would improve service.

Terms and Flexibility

Clear eligibility requirements and flexible loan options show transparency. The absence of prepayment penalties is excellent, though some fee structures could be more clearly disclosed upfront for total borrowing cost calculations.

Pros & Cons

Fast funding, with loans available in as little as 24 hours, perfect for businesses needing quick cash infusion.
Flexible loan options, offering both working capital and equipment financing to suit various business needs.
Lower credit score requirement (600 FICO), making it accessible for businesses with less-than-perfect credit.
No prepayment penalties, allowing you to save on interest by paying off your loan early.
Simple online application process, saving you time and hassle when applying for funding.
Personalized customer service, with dedicated loan specialists to guide you through the process.

Higher costs compared to traditional bank loans, which may impact overall affordability for some businesses.
Shorter repayment terms for working capital loans (up to 18 months), potentially leading to higher monthly payments.
Lack of transparency in fee structure, making it challenging to calculate the total cost of borrowing upfront.

Details

Loan National Funding

Terms & fees

Loan amount$5,000 - $500,000

Term4 months - 5 years

Annual interest rate4% - 39%

Nominal interest rate1.11% - 10%

Origination fee1% - 3%

Monthly fees$0

Interest rate typeFixed rate

Requirements

Minimum credit score580-669

Minimum years in business0.5

Minimum annual revenue$50,000

Company types availableAll business types accepted

National bank requiredYes

National phone number requiredYes

Headquarters in country requiredYes

Electronic identificationYes

Require tax returnsYes

Require bank statementYes

Require financial statementYes

Require business planNo

Collateral requiredNo

Personal collateral requiredNo

Features

Revocation periodNo

Weekend payoutNo

Loan extensionsYes

Early paybackYes

Loan brokerYes

P2P LenderNo

Possible for start-upsNo

Line of creditYes

Additional fields

Recommended companyYes

Get started

We spent 17 hours researching and testing National Funding, comparing it to the best alternatives on the market, so you don't choose the wrong business lender and miss out on optimal financing.

Quick Answer:

Need funding quickly
Have a credit score of 600 or above
Have been in business for at least six months
Generate at least $250,000 in annual revenue
Are comfortable with potentially higher costs in exchange for speed and convenience

Overall, we score National Funding 4.2 out of 5. If you choose National Funding, you'll benefit from fast funding and flexible options for both working capital and equipment financing.

Feature	Details
Loan type	Working Capital Loans, Equipment Financing
Loan amount	Up to $500,000 for working capital, up to $150,000 for equipment financing
Loan term	4 to 18 months for working capital loans, up to 60 months for equipment financing
Interest rate	Starting at 1.11% factor rate
Min. credit score	600 FICO
Monthly fees	Not explicitly stated
Time to receive loan	As little as 24 hours
Requirements	Annual Sales: At least $250,000 in gross annual sales. Time in Business: At least six months for term loans and two years for equipment financing. Credit Score: A minimum FICO score of 600 is required.

Who is National Funding for?

National Funding caters to small business owners who need quick access to capital or equipment financing.

Their services are particularly well-suited for entrepreneurs who may not qualify for traditional bank loans due to credit issues or limited time in business.

Am I eligible for National Funding?

Minimum credit score: 600 FICO
Annual revenue: At least $250,000 in gross annual sales
Time in business: At least six months for working capital loans, two years for equipment financing
Business location: Must be based in the United States

National Funding is best for…

National Funding is ideal for small business owners who need fast access to working capital or equipment financing.

If you're looking to seize a time-sensitive business opportunity, bridge a cash flow gap, or upgrade your equipment without a long wait, National Funding could be your go-to lender.

Their lower credit score requirement makes them particularly attractive for businesses with less-than-perfect credit histories who might struggle to secure funding elsewhere.

National Funding is not for you if…

National Funding may not be the best choice if you're a startup with less than six months in business or if your annual revenue is below $250,000.

Additionally, if you're seeking long-term financing with lower interest rates and have an excellent credit score, you might find better terms with traditional banks or SBA loans.

Businesses looking for very large loans (over $500,000) or those who prefer a more transparent fee structure might also want to explore other options.

How To Apply

Applying for a loan with National Funding is a straightforward process. Here's a step-by-step guide to help you navigate the application:

Follow these steps to apply for a loan with National Funding. The process is designed to be quick and straightforward, often resulting in funding within 24 hours of approval.

Visit the National Funding Website

Go to the National Funding website and click on the "Apply Now" button. Alternatively, you can call their sales team directly for personalized assistance.

Complete the Initial Application

Fill out the initial application form with basic information about your business:

Business name and contact information Time in business Annual revenue Desired loan amount

Be sure to provide accurate information to expedite the process.

Submit the Application

Once you've filled out all required fields, submit your application. A National Funding representative will typically contact you within a few hours to discuss your application and next steps.

Provide Additional Documentation

Based on your initial application, you'll be asked to provide additional documentation. This may include:

Bank statements (typically the last 3-4 months) Tax returns Proof of ownership Equipment quotes (for equipment financing)

Having these documents ready in advance can help speed up the process.

Review and Accept the Loan Offer

Once National Funding has reviewed your application and documentation, they will present you with a loan offer. Carefully review the terms, including interest rate, repayment period, and any fees. If the offer meets your needs, accept it to proceed.

Receive Funding

After accepting the offer, National Funding typically provides the funds within 24 hours. The money will be deposited directly into your business bank account.

Consider this before applying

Before you apply, take a moment to assess your business's financial health and funding needs. Make sure you can comfortably manage the repayments given the potentially higher interest rates and shorter terms.

Also, have all your financial documents ready to expedite the process. Remember, while National Funding offers quick approvals, it's crucial to read all terms and conditions carefully before accepting any loan offer.

National Funding Costs

Understanding the costs associated with National Funding's loans is crucial for making an informed decision. Here's a breakdown of the key financial aspects:

Cost Type	Details
Interest Rate	Starting at 1.11% factor rate
Origination Fee	1% - 3%
Prepayment Penalty	None; early payoff discounts available

It's important to note that National Funding uses factor rates instead of traditional interest rates for their working capital loans.

A factor rate of 1.11 means you'll repay $1.11 for every dollar borrowed. However, the actual cost can be higher depending on your business's risk profile and the loan terms.

For equipment financing, the interest rates and terms may differ and are typically more in line with traditional loan structures.

While National Funding doesn't publicly disclose all its fees, it's crucial to ask about any potential hidden costs during the application process. These might include origination fees, processing fees, or late payment penalties. Always request a full breakdown of all costs before accepting a loan offer.

Remember, the lack of prepayment penalties and the offer of early payoff discounts can be significant advantages if you're able to repay your loan ahead of schedule, potentially saving you money on interest.

How Financer Rates National Funding

At Financer, we evaluate lenders based on three key criteria: Ease of Use, Costs, and Customer Support. Here's our comprehensive review of National Funding:

Overall rating

Criteria	Rating
Overall Financer Score	4.2/5
Ease of use	4.5/5
Costs	3.8/5
Customer service	4.3/5

Ease of use: 4.5/5

National Funding excels in providing a user-friendly experience. Their online application process is straightforward and can be completed in minutes. The website is well-designed and responsive, working smoothly on both desktop and mobile devices.

We found the application process to be intuitive, with clear instructions at each step. The ability to save and resume your application is a nice touch, especially for busy business owners.

The only minor hiccup we encountered was the need for additional documentation, which is common in business lending but could be streamlined further.

Costs: 3.8/5

While National Funding offers competitive rates for alternative lending, their costs are higher than traditional bank loans. The use of factor rates instead of interest rates for working capital loans can make it challenging to compare costs directly with other lenders.

We appreciate the absence of prepayment penalties and the offer of early payoff discounts, which can help reduce the overall cost of the loan. However, the lack of transparency regarding additional fees is a drawback. Borrowers should be prepared to ask detailed questions about all potential costs before committing to a loan.

Customer service: 4.3/5

National Funding's customer service is a strong point. We tested their support by asking several questions about their loan products and application process. Here's what we found:

Response time was quick, with most inquiries answered within a few hours.
The representatives were knowledgeable and able to provide detailed information about loan options.
The support team was courteous and patient, willing to explain complex terms in simple language.

One area for improvement would be extending their customer support hours to accommodate businesses in different time zones better. Overall, though, the level of personalized attention and expertise provided by National Funding's customer service team is commendable.

Frequently Asked Questions About National Funding

Is National Funding legit?

Yes, National Funding is a legitimate alternative lender. Established in 1999, they have provided over $4 billion in funding to small businesses across the United States. They are accredited by the Better Business Bureau with an A+ rating and have received numerous accolades for their services.

How fast can I receive funding from National Funding?

National Funding prides itself on quick turnaround times. After approval, you can receive funds in as little as 24 hours. However, the exact timing may vary depending on the complexity of your application and the type of loan you're seeking.

What types of businesses does National Funding work with?

National Funding works with a wide range of small businesses across various industries. However, they typically require businesses to have been operating for at least six months (for working capital loans) or two years (for equipment financing) and have a minimum of $250,000 in annual revenue.

Does National Funding check credit scores?

Yes, National Funding does perform a credit check as part of their application process. However, they have a relatively low minimum credit score requirement of 600, making their loans accessible to businesses with less-than-perfect credit.

Can I pay off my National Funding loan early?

Absolutely! National Funding not only allows early repayment but also encourages it by offering early payoff discounts. This can potentially save you money on interest if you're able to repay your loan ahead of schedule.

What happens if I miss a payment?

While National Funding doesn't explicitly state their late payment policy, missing payments can negatively impact your credit score and may result in additional fees. If you're struggling to make payments, it's best to contact their customer service team proactively to discuss potential solutions.

Alternatives to National Funding

While National Funding offers solid options for small business financing, it's always wise to consider alternatives. Here are two other companies worth exploring:

OnDeck

OnDeck is another prominent player in the online business lending space. Like National Funding, they offer quick access to capital with a streamlined application process.

Pros

Offers both term loans and lines of credit
Potentially lower interest rates for businesses with strong credit profiles
Transparent fee structure

Cons

Higher minimum credit score requirement (600+)
Shorter maximum loan term for term loans (24 months)

For more details, check out our full OnDeck review.

American Express Business Blueprint

American Express Business Blueprint (formerly known as Kabbage) provides flexible lines of credit for small businesses.

When comparing these alternatives, consider factors such as loan terms, interest rates, fees, and eligibility requirements. Your business's unique needs and financial situation should guide your decision.

Remember, while these alternatives offer similar services, each has its own strengths and weaknesses. It's crucial to thoroughly research and compare options before making a decision. You can use our business loan comparison tool to explore more options and find the best fit for your business.

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At Financer.com, we're committed to helping you with your finances. All our content abides by our Editorial Guidelines. We are open about how we review products and services in our Review Process and how we make money in our Advertiser Disclosure.

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