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National Funding business loans: 2023 review

2023-05-31 15:57:14
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At a glance

Overall Score 4.4
Overview Established in 1999, National Funding provides short- and long-term loans to eligible business owners with a credit score of over 600. Fast funding times, early payoff discounts and a guaranteed lowest payment for equipment leases add to the appeal.
Loan amount: $5,000 to $500,000
Interest rate: Starting at 4.99% (simple)
Factor rate: Starting at 1.10
Term lengths: 4 to 60 months
Minimum credit score: Over 600

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, a lender like National Funding is a solid choice to look into. It doesn’t charge a prepayment penalty and instead offers an early payment discount.

Who National Funding may not be best for

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

It’s 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 pros and cons


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    Rapid funding

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    Lowest payment guarantee for leases

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    Early payoff discount

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    Potential tax savings


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    Short repayment terms

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    Limited information on website

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    Potentially high interest rates

Business loan types offered

National Funding offers working capital loans, short-term business loans and equipment financing loans to small businesses.

Working capital loan

A working capital loan from National Funding doesn’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 600, which is closer to the lower end of 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.

Equipment financing loans

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 650. 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.

Short-term business loans

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 requires applicants to meet 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 offers loans with 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 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 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 FAQs

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.


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 20 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 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.

Written by
Allison Martin

Allison Martin’s work began over 10 years ago as a digital content strategist, and she’s since been published in several leading financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews, Investopedia, Experian and

Edited by Editor