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National Funding Business Loans
Ideal for business owners with poor credit – National Funding
Get ready to pick up your phone to call National Funding directly to speak with a rep — non-transparent rates and fees make this lender difficult to online shop for loans.
National Funding, an alternative business lender headquartered in San Diego, has provided short-term loans, equipment financing and merchant cash advances to businesses since 1999. National Funding business loans have flexible credit score requirements, which makes it a good option if you have bad credit. But these loans have higher interest rates than traditional loans, and the strict repayment schedule may cause cash flow issues for your business if your revenue is low.
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National Funding at a glance
| Lender | Loan amount | APR range | Terms | Key benefit |
|---|---|---|---|---|
| National Funding | $5,000–$500,000 | 10%–30% | 3 months–5 years | Fast funding |
Rates accurate as of July 30th, 2020 and gathered by calling the lender directly
What we like about it
Many lenders require borrowers with bad credit to put down collateral to get a small business loan, but not National Funding. The company will consider applications for its unsecured loans from borrowers with credit scores as low as 500, or 475 if they’re renewing an existing loan.
Another benefit of going with National Funding is its fast application and funding process. Applying only takes a few minutes, and if you’re approved, you may be able to get your money in as few as 24 hours.
National Funding also offers a wide range of loan terms and amounts, which allows you to customize your loan to suit your business goals. You can take out as little as $5,000 or as much as $500,000, and choose to pay it back in a few months or stretch the payments out over a few years to lower your payments.
Things to consider
National Funding has a faster application and funding process than traditional lenders but charges a much higher interest rate for that convenience. Many conventional lenders offer loans with interest rates under 10%, while National Funding business loan rates start at 10% and go up to 30%.
National Funding also has a stricter repayment schedule than conventional lenders. Banks typically have a monthly payment schedule, whereas National Funding may require you to pay your loan back on a daily or weekly basis. If you don’t have a lot of revenue, this may cause cash flow issues for your business and make it difficult to meet your other obligations.
Another downside of National Funding is that it isn’t very transparent about its rates and fees. There isn’t any information about annual percentage rates or origination fees on the company’s website. To find out what your loan will cost, you’ll have to complete the application process or call the lender directly.
National Funding business loan reviews also tend to be negative. Despite getting an A+ from the BBB, National Funding business ratings are two out of five stars from customers, who often cite customer service issues as the reason for the poor experience.
What you need to know
Although you’ll have to apply to get your exact rate, National Funding generally offers interest rates between 10% and 30%. Additionally, it charges an origination fee that’s a small percentage of your loan amount. Loan terms range from just three months to five years, which gives you more time to pay back your loan if you need it. The company also offers a variety of loan amounts giving you flexibility in how much you borrow. You can take out a short-term loan of $5,000 to bridge a gap in cash flow, or borrow as much as $500,000 to make large inventory or equipment purchases.
No matter how much you decide to borrow, National Funding’s application process is quick and easy. All you’ll need to complete the online application is three months of bank statements and some basic information about your business like your tax identification number. Once you’re done filling out the short form, a specialist will reach out to you to discuss your loan options. The whole process from applying to receiving your funds could take as little as one day.
Collateral and criteria
If you’ve been in business for at least one year and have annual revenue of $100,000 or more, you may be able to get a business loan from National Funding. You’ll also need a credit score of at least 500 in order to qualify for financing, making this one of the best business loans for bad credit.
Even if you have a low credit score, you won’t have to put down collateral or make a down payment on your loan. However, National Funding may require the primary borrower to sign a personal guarantee. This gives the company the right to go after your personal assets if you fail to pay back the loan.
National Funding vs. OnDeck
Just like National Funding, OnDeck provides businesses with fast short-term financing. You could even receive your money the same day that you apply. You can borrow as little as $5,000 or as much as $500,000. And depending on your creditworthiness, you may qualify for an interest rate as low as 11.89%.
If you have a low credit score, you may have trouble getting approved for OnDeck’s loans. The company requires borrowers to have a credit score of at least 600, so if your credit score is lower than that, National Funding may be the better lender for you.
National Funding vs. Credibility Capital
Credibility Capital offers business loans ranging from $25,000 to $350,000 with interest rates as low as 8%. You can get terms between one and three years and pay your loan back monthly, which may be better for your company’s cash flow than National Funding’s daily or weekly repayment schedule.
Overall, Credibility Capital seems to be a better lender, but its loans are harder to qualify for than financing from National Funding. Credibility Capital requires you to have a strong personal credit score and be in business for at least 24 months before you apply. The company also has a higher minimum loan amount than National Funding. If you have a poor credit score or want to borrow less than $25,000, National Funding business loans may suit your needs better.
Too long, didn’t read?
National Funding business loans may not be the best business loans on the market. They have higher rates than conventional loans, so you’ll end up paying more interest. However, they’re still a good option if you have bad credit and can’t qualify for a conventional loan or need money on short notice.
We welcome your feedback on this article. Contact us at inquiries@thesimpledollar.com with comments or questions.
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Methodology
We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.
Our editorial team:
- Identifies five factors to compare across each brand
- Determines the rating criteria for each factor
- Calculate an average of those five factor scores to get one SimpleScore™
We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2020.
Why do some brands have different SimpleScore on different pages?
Some brands offer a variety of financial products, which is why they have different SimpleScores on different pages. We rate individual products that brands offer — not the brand as a whole.
For instance, in our American Express personal loans review we rated the company a 4.25 out of 5 based on rates, loan amount, customer satisfaction, customer support and fees. In our review of the best small business loan rates, American Express earned a 3.4 out of 5 SimpleScore based on its business loan product. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of each brands’ services and how they compare to competitors’ products.
Median APR
Lenders with a lower median APR are awarded higher scores — because even if you’re APR is average, your business is not.
Maximum loan size
Lenders that dole out loans with high maximums are also rewarded with higher scores. It takes money to run a business, and businesses need access to as much capital as it takes.
Product variety
Need more than just a business loan? Lenders that offer more than one type of financial product for businesses score higher than others that don’t.
Educational Resources
We gave out higher scores to lenders that have the following subjects covered in their blogs: loans, marketing, employee and staff, and credit or finance resources.
Fees
Fees can add up fast and eat into operating costs –– that’s why we give a higher score to lenders that have fewer fees.
Reviewed by
Courtney Mihocik
EditorCourtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.
