Does your business need extra capital? Whether you want to buy equipment, maintain operations, or make a big investment, National Funding has you covered. The lender offers various financial products that help business owners access additional resources. This National Funding review will cover how the lender works and what to keep in mind before taking out a loan.
What is National Funding?
National Funding is an alternative lender that serves small businesses. The company has been giving out loans since 1999 and is based in California. National Funding offers loans tailored to your business needs and works with clients in many verticals.
How Does National Funding Work?
National Funding allows small business owners to apply for loans. The company has several financing options and has given over $4.5 billion to over 75,000 small businesses since 1999. National Funding has a quick and easy process where you can receive funding in as little as 24 hours. The small business lender is much faster than traditional business lenders.
What Industries Does National Funding Offer Business Lending Solutions For?
National Funding serves many industries and focuses on small businesses. While you can use any of the lender’s core financial products for your company, National Funding has several customized products based on business industries. This list gets long, but some of National Funding’s customized loans cater to restaurants, retail businesses, food trucking companies, construction projects, beauty & wellness, auto repair businesses, and gardening & landscaping businesses. That’s just scratching the surface of National Funding’s customized lending solutions for small businesses in specific industries.
What Business Loans Does National Funding Offer?
National Funding offers several types of loans for small business owners. These are the choices you will find if you want to get a loan from the company.
Small Business Loans
National Funding can help you go from loan application to capital in as little as 24 hours after getting approved. The lender connects you with a Funding Specialist to discuss your options and then provides quick capital if you get approved. National Funding does not have any collateral requirements and enables simple, automatic repayments. You can borrow up to $500,000 if you get a small business loan from National Funding.
Working Capital Loans
Working capital loans give you extra money to stay on top of your company’s operations. National Funding offers working capital loans for any business but has specialized working capital loans for contraction, commercial vehicles, medical, dental, agricultural, and other business industries. National Funding has the same process for these loans and small business term loans, which means you can receive funding in as little as 24 hours after getting approved.
Short Term Business Loans
A short term business loan gives you the capital you need for an immediate expense. These loans have shorter durations, which means you will get out of debt sooner. However, you will end up with higher monthly payments if you opt for a shorter term. It is possible to get a short term business loan even if you do not have the best credit score.
Equipment Financing and Leasing
National Funding lets small business owners borrow up to $150,000 to finance or lease equipment. This limit applies to new and pre-owned equipment. You can get an equipment loan from National Funding without putting any money down.
Other Financing Solutions
National Funding offers additional types of loans and financing for your business. These are some of the additional products:
- Bridge loans: These short term loans range from a few weeks to a few years.
- Commercial business loans: Borrow up to $500,000 for business needs.
- Corporate loans: Capitalize on growth opportunities or cover operating costs.
- First-time business loans: Get easier access to capital, even if you are just getting started.
- Inventory financing loans: Get the cash you need to stock up the shelves before the holiday season or busy season arrives.
How Do You Qualify for a Business Loan with National Funding?
National Funding has a few requirements for small business owners who want funding. You need to have a business bank account, be in business for at least six months, and generate at least $250,000 in annual sales. Those minimum requirements leave room open for business owners who do not have the best credit scores. If you have gotten your applications rejected by previous lenders and fulfill National Funding’s minimum requirements, it may be worth submitting an application.
Are There Any Fees Associated with National Funding Business Loans?
You will have to pay an origination fee, which typically ranges from 1%-2% of the loan’s value. You will also have to make monthly interest payments. Any late payments can result in late fees.
Pros of National Funding
These are some of the advantages of getting a business loan with National Funding:
- Quick funding: Receive capital in as little as 24 hours after getting approved. Some traditional lenders can take over a week to give you the same funds.
- Minimum business experience: You only need six months of business experience to qualify for financing. Other business lenders require that you have at least two years of experience to qualify.
- The variety of loans: Small business owners can choose from many types of financing when they work with National Funding. Other small business lenders give you fewer choices and don’t offer as much customization.
- Funding Specialists: Work with a specialist who can guide you to the best financing solution for your company’s needs. It’s better to approach the process with an expert than to navigate it on your own.
- No collateral or down payment: You don’t have to put anything down to get a loan from National Funding. This set-up allows you to protect your cash and get the resources you need for your company.
- More generous credit score requirements: You don’t need the best credit score to get extra capital for your company. Some lenders have high credit score requirements that prevent many borrowers from receiving loans.
Cons of National Funding
National Funding has several perks, but it is important to weigh some of the cons before making a decision:
- High revenue requirement: Business owners must make at least $250,000 in annual sales to qualify for a loan. Some lenders have more generous annual revenue requirements.
- Frequently repayments: You will have to make daily or weekly repayments for a short term loan. These frequent payments reduce the amount of time you have access to some of the capital you receive from the loan.
- Interest rates: While it’s good that credit score requirements are more generous, that usually translates into higher interest rates. However, if you have a good credit score and finances, you can get a more competitive rate from National Funding.
Is National Funding Right for You?
National Funding can help business owners who need extra money in a hurry. The lender has more generous credit score requirements, and you only need six months of business experience to get started. However, the lender requires that you generate at least $250,000 in annual sales. That requirement can block out many smaller companies that are just getting started. You won’t have to put any money down, which is a significant benefit for cash-strapped businesses.
How to Apply for a Business Loan with National Funding
You can apply for a business loan with National Funding by visiting the company’s website. After you fill out this quick form, a specialist will reach out to you. You will have to provide your name, email, phone number, annual sales (from three choices), and other details during the application process.
