Best National Funding Small Business Loans Review
While being a business owner is often a rewarding experience, it isn’t always easy. Sometimes deals fall through, emergencies happen, or unexpected expenses come up. That’s where short-term lenders like National Funding come in. National Funding provides large loans to borrowers who are experiencing a gap in their revenue and need fast cash. If your financial needs are urgent or you’re having trouble qualifying with a traditional lender, this company could be worth applying to. Let’s take a look at how National Funding works.
National Funding Pros & Cons
Pros:
- High loan amounts of up to $500,000
- Quick to fund, with funding as soon as the next business day
- Fixed repayment schedule
- Services all 50 states
- Offers equipment financing, merchant cash advances and small business loans
- Easy for new businesses or businesses with average credit to qualify
- Works with several different industries
- Timely repayments can help build business credit
Cons:
- Potential for APR as high as 30% on loans, which is higher than most traditional business lenders
- Weekly or daily repayment schedule
- Maximum repayment period of 15 months
How does National Funding work?
Borrowing Amounts: Borrowers can access loans starting at $5,000, with a maximum amount of $500,000.
Term Lengths: National Funding is a short-term lender, meaning that borrowers should be able to repay the full amount of the loan, plus interest and fees, within a time frame of 15 months at the maximum. Borrowers should also be prepared to make daily or weekly repayments, as opposed to the usual monthly repayments made on traditional or regular term business loans.
Interest Rate: National Funding’s APRs range between 15% and 30%. However, if you’re looking into their merchant cash advance (MCA) product, their rates can soar as high as 350%.
Collateral: No collateral is required to take out a National Funding loan. However, borrowers are required to sign a personal guarantee, which puts their credit scores and assets at risk if they default on the loan.
What industries does National Funding provide loans for?
National Funding provides loans to businesses in almost any industry, including construction, restaurants, agriculture, retail and many seasonally-based industries. Because borrowers are obligated to repay the loans within such a short period of time, National Funding’s products are ideal for businesses that see gaps in their cash flow, rather than businesses that are looking for a long-term and consistent form of funding.
What are borrower qualifications for a National Funding business loan?
To qualify for a business loan with National Funding, you should have an annual revenue above $100,000, a credit score above 600 and at least one year in business.
Are there any hidden terms or fees?
Borrowers will have to pay an origination fee of 2% of the overall cost of the loan. While National Funding does not directly list any additional costs including prepayment or late payment fees, borrowers can expect to see some early repayment incentives.
Is National Funding legit?
National Funding is accredited by and has an A+ rating with the Better Business Bureau (BBB). While this is generally a good indicator that a business is legitimate, the lender only has a two-star rating in its customer reviews. In short, National Funding is a legitimate business and lender. However, borrowers should make sure to carefully evaluate and understand each element of their loan agreement prior to making the full commitment.
How does the application process work?
Applying for a National Funding loan is relatively easy and straightforward. You can start by filling out their exclusively online application that takes just minutes to complete. Alternatively, prospective borrowers can call National Funding’s sales team to apply over the phone or discuss any concerns beforehand. Once the application is completed, funds will usually be disbursed within as little as 24 hours.
National Funding Lender Comparison
vs LoanBuilder
Pros:
- Low minimum time in business requirement of just nine months
- Easy for borrowers with average credit to qualify, with a minimum credit score of just 550
- No origination fees
- Easy, online application
Cons:
- Shorter repayment periods than National Funding, with a maximum repayment period of just one year
- Borrowers must be PayPal members to qualify
- Weekly repayments
Advantages of National Funding over LoanBuilder
While borrowers can borrow similar amounts of money through LoanBuilder, National Funding’s loans often come with more flexible repayment terms and lower interest rates. Additionally, borrowers do not have to be registered with PayPal or any other service to work with National Funding.
vs Lendio
Pros:
- Borrowers have access to several different lenders through just one Lendio application
- Minimum time in business requirement of just six months
- Easy for new businesses or borrowers with low credit to qualify
- Fast, easy online application that requires less paperwork than Live Oak Bank’s application
Cons:
- Potential for high interest rates and fees
- Lendio’s loans take longer to fund than National Funding’s loans
- Hard credit checks
Advantages of National Funding over Lendio
Borrowing through a third party always has the potential to add another layer of complication to the process. If you’re taking out a loan through a service like Lendio’s, you may have trouble communicating directly with the lender and finding someone to get in touch with if you need assistance at any point during the process. With National Funding, borrowers are able to communicate and resolve issues directly.
vs Credibly
Pros:
- Longer repayment terms than National Funding, with a maximum of 18 months
- Access to a wide variety of products, including merchant cash advances, business expansion loans and working capital loans
- Easy, online application
- Access to a live representative
Cons:
- Smaller loan amounts than National Funding, with a maximum of $400,000
- Higher origination fee of 2.5%
- Potential for high or extra fees
Advantages of National Funding over Credibly
Although borrowers may have access to a longer repayment period with Credibly, National Funding’s rates are often lower, and their application process is slightly more streamlined, as no live interview is necessary to qualify for a loan. Additionally, borrowers can access up to $500,000 through National Funding, whereas Credibly only offers a maximum of $400,000. That extra $100,000 can make the difference between making a down payment using just one loan or finishing a large-scale business project.
Does National Funding offer good customer service if things go wrong?
Borrowers or potential applicants can get in touch with National Funding directly by telephone, as well as through their website and social media pages including LinkedIn, Facebook and Twitter. Overall, National Funding’s representatives are responsive and borrowers shouldn’t have any issue reaching someone during business hours.
Conclusion
National Funding isn’t always the cheapest option, but it’s definitely one of the fastest in the industry. If you need quick cash and you’re looking for a reliable lender that can provide you access to up to $500,000, National Funding could be right for you. Even if you’re dealing with a time crunch, however, it’s always wise to apply with multiple lenders and compare a variety of offers before making a final decision on the loan that’s right for your business.