National Funding Business Loans: 2025 Review
National Funding offers fast and flexible business loan options, but transparency on its website could be improved.
Overview
The bottom line:
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
Loan details
Min. Loan Amount
$0
Min. Term Length
24 months
Max Loan Amount
$150,000
Max Term Length
5 years
Qualifications
Min. credit score
600
Min. Time in Business
6 months
Min. Annual Revenue
$250,000
Pros & Cons
Pros
Funding in as little as 24 hours.
Prepayment discounts available.
Offers loans to startups and borrowers with bad credit.
No collateral or down payment required.
Cons
Charges a factor rate that makes it more difficult to compare costs with other lenders.
Requires higher annual revenue than other online lenders.
Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
Charges an origination fee.
National Funding is an online lender that issues small-business loans
National Funding is known for its flexible eligibility requirements, simple application process and fast funding timeline. The lender charges interest as a factor rate, however, which can make it difficult to compare costs with those of other lenders.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
National Funding is best for borrowers who:
- Need cash fast. National Funding offers a simple application process with minimal documentation required. You can apply, receive a decision and get funding in as little as 24 hours.
- Can repay the loan early. You may be able to receive a special discount for repaying your loan early. When you get your
business loan agreement - Don’t meet the eligibility requirements of other lenders. National Funding considers borrowers with at least six months in business as well as those with bad credit.
» Have bad credit? Check out more options with our best business loans for bad credit
National Funding loan features
National Funding offers short-term business loans
The lender also offers equipment financing equipment leasing
| Equipment financing and leasing | Short-term loan | |
| Loan amount | Up to $150,000. | $5,000 to $500,000. |
| Estimated factor rate | National Funding quotes interest as a factor rate — which starts at 1.1 for borrowers with strong credit. | National Funding quotes interest as a factor rate — which starts at 1.1 for borrowers with strong credit. |
| Fees |
|
|
| Terms | 24 to 60 months. | Four to 24 months. |
| Repayment schedule | Monthly. | Daily or weekly. |
| Funding speed | As fast as 24 hours. | As fast as 24 hours. |
National Funding loan requirements
To qualify for a business loan from National Funding, you’ll need to meet the following minimum criteria:
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $250000.
National Funding also requires that you have a business bank account. If you’re applying for equipment financing or leasing, you’ll need to provide an equipment quote from a vendor as part of your application.
Where National Funding stands out
Quick application and funding
National Funding’s loan application is relatively simple. Business owners can apply online in minutes and get a decision within 24 hours. Plus, approved loans may be funded as soon as the next business day. A business loan from a traditional bank takes days or even weeks to get from application to funds in the bank.
💬 From our Nerds: Even when you need funding quickly, don’t neglect this step
"The worst thing you can do when you’re in a rush to receive financing is neglect to read through your loan terms and agreement before you sign. By doing so you run the risk of being caught off guard by a payment date, or even agreeing to something that isn’t in your business’s best interest. If you need help understanding your loan agreement, you can ask for clarity from your loan officer. A reputable lender will want to help you understand."
Olivia Chen, lead writer, Small Business
Easier for businesses to qualify
Small-business owners typically need a credit score of 690 or higher to qualify for an SBA loan or to secure a loan through a traditional bank. National Funding offers business loans to borrowers with bad credit (a personal credit score as low as 600).
National Funding can also be a good option for startup companies
Early repayment discount
Instead of charging prepayment penalties, National Funding offers a discount for borrowers to repay their loans early. Before you accept the terms of your loan, National Funding will provide the prepayment discount amounts and details of the offer.
To receive the discount, you must pay off your balance in full, be current and be in good standing within the given time parameters.
Where National Funding falls short
Daily or weekly repayments
National Funding’s short-term loans require daily or weekly payments. This frequent payment schedule can put a strain on businesses with irregular sales or cash reserves that are already stretched thin.
Charges interest as a factor rate
National Funding charges interest on its business loans as a factor rate
For instance, say you have a 12-month, $20,000 loan with a factor rate of 1.1. To calculate the total cost of the loan, you’d multiply $20,000 by 1.1 to get $22,000.
Compared with more traditional interest rates, factor rates can be hard to understand and make it more difficult to compare loan costs with those of other lenders. Converting your factor rate into an annual percentage rate, or APR, can give you a better sense of your borrowing costs.
Lack of website transparency
National Funding’s website can make it difficult to determine exactly what type of loan products the lender offers. For example, the main navigation allows you to browse “Loans & Financing,” which lists: Small Business Loans, Working Capital Loans, Short Term Business Loans and Equipment Financing and Leasing, among your options. Based on this list, you might be led to believe that National Funding offers four types of loans.
When you investigate further, however, you’ll find that the lender offers only short-term loans and equipment leasing and loans. Similarly, the website also displays loans based on industry (e.g., construction loans, medical practice loans, agriculture business loans), which can cause a similar type of confusion about the actual financing options National Funding offers.
Alternatives to National Funding
Triton Capital
If you’re looking for an alternative equipment lender to National Funding, you might consider Triton Capital. Triton offers equipment loans up to $250000 with repayment terms up to 60 months. Unlike National Funding, however, Triton Capital does not offer equipment leasing.
With Triton, you can finance used or new equipment, and interest rates start as low as 6.5%. You can apply for equipment financing online with minimal documentation and receive approval within two to four hours. After you’ve been approved, Triton is typically able to provide funds within one to two business days.
To qualify for an equipment loan from Triton, you’ll need a minimum credit score of 580 and annual revenue of $150000 or more. Generally, Triton prefers that companies have 24 months in business.
OnDeck
OnDeck offers short-term business loans with fast funding times and flexible qualification requirements. You can get a short-term loan of up to $250000 with repayment terms of 18 or 24 months.
Like National Funding, you can apply for a loan from OnDeck in just minutes and receive approval the same day. Funds can be available in as little as 24 hours.
To qualify for an OnDeck loan, you’ll need a minimum credit score of 625, at least 12 months in business and a minimum annual revenue of $100000.
Frequently Asked Questions
Is National Funding a legitimate company?
Does National Funding do a hard credit inquiry?
What is National Funding Ignite?