SMALL BUSINESS LOANS REVIEWS
Read our review of

National Funding Small Business Loans: 2024 Review

Written by
Allison Martin
Edited by
Robert Thorpe

Updated Apr 17, 2024

At a glance

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4.4
Bankrate Score
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Accessibility
Affordability
Customer experience
Transparency
Flexibility
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Overview

Established in 1999, National Funding provides short- and long-term loans to eligible business owners with a credit score of over 660. Fast funding times, early payoff discounts and a guaranteed lowest payment for equipment leases add to the appeal.

Lender Details

  • Moneybag

    Loan amount

    $5,000-$500,000

  • Rates

    Interest rate

    1.1 Factor rate | 4.99% Simple interest

  • Clock Wait

    Term lengths

    Up to 60 months

  • Dollar

    Min. annual revenue

    $250,000

  • Business

    Min. time in business

    6 months

Who National Funding is best for

Startup businesses that have been operating for at least six months are eligible to apply but will need at least $250,000 in annual revenue. If you plan to pay off your loan early, National Funding business loans are worth looking into. The lender doesn’t charge a prepayment penalty and instead offers an early payment discount.

Who National Funding may not be best for

National Funding loans require a minimum personal credit score of at least 600 for equipment loans or 650 for working capital loans. So it’s not a good fit for anyone who needs a bad credit business loan.

National Funding loans are also not the best option if you need large loan amounts. Most loans have a limit of $500,000, but semi-truck drivers and other business owners looking for equipment financing have an even smaller limit of $150,000.

National Funding: in the details

Loan amount
$5,000-$500,000
Interest rate
1.1 Factor rate | 4.99% Simple interest
Term lengths
Up to 60 months
Fastest funding
1 business day
Min. annual revenue
$250,000
Min. time in business
6 months
Personal credit score
660

National Funding pros and cons

Pros

  • Checkmark

    Rapid funding

  • Checkmark

    Lowest payment guarantee for leases

  • Checkmark

    Early payoff discount

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    Potential tax savings

Cons

  • Short repayment terms

  • Limited information on website

  • Potentially high interest rates

Business loan types offered

Loan quick facts

  • Amounts: $10,000 to $500,000
  • Terms: 4 months to 18 months
  • Factor rate: Starting at 1.10

National Funding working capital loan overview

The types of working capital loans found at National Funding don’t require collateral, unlike many other lenders. Repayment terms are short, though. If you need longer repayment period for loans outside of equipment financing, you’ll need to look elsewhere.

National Funding doesn't provide much information on its website, but a spokesperson stated its working capital loans have a personal credit score requirement of 660, which is in the fair credit range. These loans have a starting factor rate of 1.10 and origination fees of one percent to three percent. 

Factor rates can make it harder to compare loans from other lenders, and even the slightest increase can significantly increase loan costs. A $100,000 loan with a factor rate of 1.10 will cost at least $110,000 ($100,000 x 1.10), while the same loan with a factor rate of 1.5 will cost at least $150,000 ($100,000 x 1.50), not counting additional fees.

Loan quick facts

  • Amounts: Up to $150,000
  • Terms: 24 to 60 months
  • Simple interest rate: Starting at 4.99%

National Funding equipment loan overview

You can use an equipment financing loan to purchase or lease new and pre-owned equipment. There are no down payment or additional collateral requirements like you may find with other lenders. 

National Funding also offers a lowest payment guarantee. If you find a lower lease payment elsewhere on comparable financing of 24 to 60 months, the lender will pay you $1,000. To qualify for equipment financing, you’ll need fair-to-excellent credit, at least six months in business and an equipment quote from the vendor. 

A spokesperson provided additional information about National Funding’s equipment financing: The minimum credit score needed is 660. Businesses will need to be operating for at least two years, and origination fees range from one percent to three percent. 

Loan interest rates start at 4.99 percent, though that is simple interest, which doesn’t take additional costs into account.

Loan quick facts

  • Amounts: $5,000 to $500,000
  • Terms: 4 months to 18 months
  • Interest rate: Not stated

National Funding short-term business loan overview

Short-term business loans are often used to cover immediate cash needs. Most are flexible and have repayment periods not exceeding a year to minimize borrowing costs. These loans also boast higher approval rates than you’ll find with other options, and perfect credit isn’t required to qualify. 

Do you qualify? 

National Funding reviews applicants and looks for the following criteria: 

  • Have fair-to-excellent credit 
  • Be in business for at least six months
  • Earn $250,000 or more in annual sales 
  • Quote from a vendor (equipment financing only)

What we like and what we don’t like

National Funding business loans have  attractive features, but there are also drawbacks to consider. 

What we like

  • Rapid funding. Some applicants receive funding in just 24 hours. 
  • Lowest payment guarantee. If you find a better lease deal on equipment financing elsewhere, National Funding will pay you $1,000.
  • Early payoff discount. You could reduce borrowing costs by paying your loan off early. 
  • Potential tax savings. The Section 179 tax deduction is available to small business owners that finance qualifying equipment. (Note: Speak with a tax professional to learn more). 

What we don’t like

  • Possible short repayment terms. Only equipment financing is eligible for loans with repayment terms longer than two years.
  • Limited information on the website. Business owners will have to contact National Funding for more information, which makes it harder to quickly compare loans from different lenders.
  • Potentially high interest rates. National Funding has relatively low starting rates, but depending on your creditworthiness, you could end up with high rates that make your loan more expensive and harder to pay off.

How National Funding compares to other lenders

National Funding stands out by offering an early repayment discount rather than penalizing people who pay their loans off ahead of schedule. But the lender’s default repayment terms are short, and the pre-discount rates can be high, so it’s a good idea to look at other lenders to see if they have better rates or deals.

4.4

Bankrate Score

  • Loan amount

    $5,000-$500,000

  • Interest rate

    1.1 Factor rate | 4.99% Simple interest

  • Term lengths

    Up to 60 months

  • Min. time in business

    6 months

  • Min. business annual revenue

    $250,000

4.4

Bankrate Score

  • Loan amount

    $10,000-$10 million

  • Interest rate

    5.25% APR

  • Term lengths

    6 months-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $100,000

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on Bankrate

4.3

Bankrate Score

  • Loan amount

    $10,000-$500,000

  • Interest rate

    5.99%-74.99% APR

  • Term lengths

    6 months-7 years

  • Min. time in business

    2 years

  • Min. business annual revenue

    $350,000

Read our review

on Bankrate

National Funding vs. SMB Compass

SMB Compass offers a wide range of loan products, nine to be precise, which makes it an appealing option for businesses that are looking for different ways to finance a purchase. Starting interest rates tend to be lower than National Funding, which can be especially appealing to borrowers with great credit who qualify for the best rates.

SMB Compass also offers larger loan amounts and long loan terms, with options to borrow money for as long as 25 years. This makes it a better fit over National Funding and its relatively shorter terms.

National Funding vs. Triton Capital

Triton Capital is a lender that targets newer, small-to-medium sized companies. Like National Funding, it offers fast approvals and funding with short time in business requirements.

Triton Capital’s loan terms are longer than National Funding’s, which makes it a potential choice for companies looking for a bit more time to pay off their debts. It’s also a good choice of you only want to borrow a small amount, with loan minimums as low as $10,000.

But Triton Capital isn’t as accessible as National Funding. It has a very high maximum interest rate and only lends to companies with $350,000 or more in annual revenue.

How to apply for a loan with National Funding 

Here’s how to apply for a small business loan with National Funding: 

  • Step 1: Submit the online application. 
  • Step 2: Connect with a Funding Specialist to review potential options. 
  • Step 3: Formally apply and submit the requested documents. 
  • Step 4: Receive a lending decision within 24 hours.

National Funding frequently asked questions

How Bankrate rates National Funding

Overall Score 4.4
Accessibility 4.0 Most eligibility requirements are relaxed except for its required annual revenue.
Affordability 4.1 Starting rates are competitively low.
Transparency 4.6 More information is needed on its website regarding maximum rates.
Customer experience 4.5 A fast application and quick approvals help this lender stand out.
Flexibility 4.6 Early payoff discounts and a guaranteed lowest payment for leases are two standout options.

Methodology

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
770+
data points collected

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

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