National Funding Business Loan full review
National Funding, an online lender, offers small business loans to businesses facing difficulty in obtaining authorization through traditional channels.
Supporting Small Businesses: National Funding Offers Breathing Space
National Funding is an online lender that specializes in providing financial support to entrepreneurs and small businesses.
Their focus is on quick approvals, user-friendly applications, and personalized attention to help businesses find the most suitable loan and financing options.
When it comes to small business loans, National Funding offers two main types: working capital loans for various business needs such as inventory, payroll, marketing, taxes, etc., and equipment financing or leasing loans to help businesses afford expensive equipment. These loan options cater to a wide range of industries, including transportation, agriculture, dining, and construction.
Moreover, National Funding also aids women, veterans, and underrepresented groups in securing funding by connecting them with lenders experienced in working with these specific borrowers.
One of the standout features of National Funding is its network of lending partners, each with their own unique borrower requirements.
In the following sections, we will delve deeper into how National Funding operates and explain their small business loans and equipment financing options.
How Do National Funding Business Loans Work?
National Funding focuses on two types of loans: small business loans and equipment financing.
Small Business Loans
On their website, National Funding advertises various types of small business loans, such as “unsecured business loans,” “business loans for women,” and “poor credit business loans.” Despite the different names, these loans share similar characteristics:
- Loan amounts ranging from $10,000 to $500,000
- Repayment terms of 4 to 24 months, with options for daily, weekly, biweekly, or monthly payments
- Starting factor rate of 1.10
- No origination charge mentioned
- Average approval time of up to 24 hours
Businesses across various industries, like agriculture, construction, medicine, and dentistry, can access these loans. However, National Funding doesn’t provide funding for industries such as marijuana, arms, or adult entertainment.
Equipment Financing
In addition to small business loans, National Funding offers equipment loans and leases with the following features:
- Loan amounts ranging from $5,000 to $150,000
- Flexible repayment terms, typically on a monthly basis (quarterly, semiannual, or annual options may be available for specific cases)
- Starting interest rate of 4.99%
- Equipment cost doc’s charge of 1%
- Typical approval time of 24 to 72 hours
National Funding’s equipment financing has several advantages. According to a company spokesperson, there are no restrictions on the age, mileage, or number of operating hours for the equipment financed, whether it’s new or used. Additionally, no down payment is required, but keep in mind that borrowing more funds will increase the overall cost. Finally, the first three months come with no payment obligations.
Compared to small business loans, equipment financing from National Funding may take a bit longer, with a processing time of up to 72 hours (if approved), instead of the usual 24 hours.
Main Benefits of National Funding Business Loans
Rapid Application and Financing
National Funding offers a straightforward loan application process. Business owners can easily apply online, receive a decision within 24 hours, and have the approved funds disbursed as early as the following business day. In contrast, traditional banks can take days or even weeks to process a business loan from application to fund disbursement.
Easier Qualification for Businesses
Traditional banks typically require small business owners to have a credit score of 690 or higher to be eligible for SBA loans or loans from the bank. National Funding, however, serves borrowers with lower credit scores, starting from 600 on the FICO scale.
Early Repayment Discounts
Borrowers who choose National Funding for equipment financing can enjoy a 6% discount on the outstanding balance by paying off the loan early. Similarly, those who fully repay their working capital loans within the first 100 days receive a 7% discount on the remaining balance.
How to Apply for a National Funding Business Loan?
If you’re interested in applying for a National Funding Business Loan, continue reading our next article, where we will provide a step-by-step guide on the application process.
