National Funding Business Loans

National Funding

National Funding business loans have flexible credit score requirements and a quick application process, so it’s ideal for business owners with poor credit who need money now.

APR
10%–30%
Loan Amount
$5K–$500K
Terms
3 months–5 years
SimpleScore
3.6 / 5.0
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SimpleScore
National Funding
3.6
  • Median APR
    2
  • Max Loan Size
    4
  • Product Variety
    4
  • Resources
    5
  • Fees
    3
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.
Full review

Our Two Cents — 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 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.

Jessica Walrack
Jessica Walrack
Contributing Writer

Jessica Walrack is a personal finance writer at SuperMoney, Interest.com, The Simple Dollar, and PersonalLoans.org. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and somewhat fun.

Reviewed by

  • Courtney 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.