SMALL BUSINESS LOANS REVIEWS
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National Funding Small Business Loans: 2025 Review

Written by
Allison Martin
Edited by
Rob Watts

Updated Jan 24, 2025

At a glance

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4.5
Bankrate Score
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Accessibility
Affordability
Customer experience
Transparency
Flexibility
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Overview

Established in 1999, National Funding provides short-term loans and equipment loans and leases to eligible business owners with a credit score of over 660. Fast funding times, early payoff discounts and a guaranteed lowest payment for equipment leases add to the appeal.

Lender Details

  • Money Bag Icon

    Loan amount

    $5,000-$500,000

  • Rates Icon

    Interest rate

    Starting at 1.1 Factor rate

  • Clock Wait Icon

    Term lengths

    Up to 60 months

  • Dollar Icon

    Min. annual revenue

    $250,000

  • Briefcase Icon

    Min. time in business

    6 months

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, National Funding business loans are worth looking into. The lender doesn’t charge a prepayment penalty and instead offers an early payment discount.

National Funding can also connect business owners with the lenders and products that fit their specific needs. Business owners will work with a dedicated funding specialist to evaluate needs and match the business with the best loan for them.

Who National Funding may not be best for

National Funding loans require a minimum personal credit score of at least 660. So it’s not a good fit for anyone who needs a bad credit business loan.

National Funding loans are 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: in the details

Loan amount
$5,000-$500,000
Interest rate
Starting at 1.1 Factor rate
Term lengths
Up to 60 months
Fastest funding
1 business day
Min. annual revenue
$250,000
Min. time in business
6 months
Personal credit score
660

National Funding pros and cons

Pros

  • Checkmark Icon

    Rapid funding

  • Checkmark Icon

    Lowest payment guarantee for equipment leases

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    Early payoff discount

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    Dedicated Funding Specialists

Cons

  • Short repayment terms

  • Limited information on website

  • Potentially high interest rates

Business loan types offered

Loan quick facts

  • Amounts: $5,000 to $500,000
  • Terms: 4 months to 24 months
  • Factor rate: Starting at 1.1

National Funding working capital loan overview

The types of working capital loans found at National Funding don’t require collateral, unlike many other lenders. Repayment terms are short, though, stopping at 24 months. 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 660, which is in 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. By comparison, a loan that charges a 20 percent APR for a two-year term would cost $22,000 in total interest. You’ll want to compare total loan costs and repayment terms when considering different loans, especially if one loan charges factor rates.

Loan quick facts

  • Amounts: Up to $150,000
  • Terms: 24 to 60 months
  • Simple interest rate: Starting at 4.99%

National Funding equipment loan overview

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 for equipment leases. 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 660. 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 fees into account.

Loan quick facts

  • Amounts: $5,000 to $500,000
  • Terms: 6 months to 18 months
  • Interest rate: Not stated

National Funding short-term business loan overview

Short-term business loans are often used to cover immediate cash needs. Most are flexible and have short repayment periods 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 reviews applicants and looks for 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 business loans have 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. 
  • Dedicated Funding Specialists. If you're unsure of what financing would be best suited for your business, National Funding has dedicated Funding Specialists. They can guide you through the process of getting a business loan.

What we don’t like

  • Possible short repayment terms. Its working capital loans offer repayments of four to 24 months, which are typical for short-term loans but short compared to other lenders. Only equipment financing is eligible for loans with repayment terms longer than two years. 
  • Limited information on the 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. Some National Funding loans charge a factor rate, which is notorious for converting to a high interest rate. You’ll want to compare the total borrowing cost with other loans to make sure you’re getting the best deal.

How National Funding compares to other lenders

National Funding stands out by offering an early repayment discount rather than penalizing people who pay their loans off ahead of schedule. But the lender’s default repayment terms are short, and the pre-discount rates can be high, so it’s a good idea to look at other lenders to see if they have better rates or deals.

4.5

Bankrate Score

  • Loan amount

    $5,000-$500,000

  • Interest rate

    Starting at 1.1 Factor rate

  • Term lengths

    Up to 60 months

  • Min. time in business

    6 months

  • Min. business annual revenue

    $250,000

4.6

Bankrate Score

  • Loan amount

    $10,000-$10 million

  • Interest rate

    7.99% APR

  • Term lengths

    6 months-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $100,000

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on Bankrate

4.4

Bankrate Score

  • Loan amount

    $10,000-$500,000

  • Interest rate

    5.99%-74.99% APR

  • Term lengths

    6 to 24 months

  • Min. time in business

    1 year

  • Min. business annual revenue

    $350,000

Read our review

on Bankrate

National Funding vs. SMB Compass

SMB Compass offers a wide range of loan products, nine to be precise, which makes it an appealing option for businesses that are looking for different ways to finance a purchase. Starting interest rates tend to be lower than National Funding with rates as low as 5.25 percent, which can be especially appealing to borrowers with great credit who qualify for the best rates.

SMB Compass also offers larger loan amounts up to $10 million and long loan terms, with options to borrow for as long as 25 years. While these features are attractive, some loans from SMB Compass have strict eligibility requirements. For example, its term loan requires you to have a 680 personal credit score and at least $500,000 in annual revenue. 

SMB Compass works well for strong credit borrowers who are looking for the lowest rates, while National Funding works well for fair credit borrowers who need fast funding.

National Funding vs. Triton Capital

Triton Capital is a lender that targets newer, small-to-medium sized companies. Like National Funding, it offers fast approvals and funding with short time in business requirements, accepting businesses with one year in business.

Triton Capital’s loan terms are slightly longer than National Funding’s, going up to 36 months for working capital loans. Its longer terms make it a potential choice for companies looking for a bit more time to pay off their debts. Triton Capital is also one of the fintech lenders that offer SBA loans, so you may want to apply if you can’t qualify for conventional loans.

But Triton Capital isn’t as accessible as National Funding. It has a very high maximum interest rate up to 74.99 percent and only lends to companies with $350,000 or more in annual revenue.

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 frequently asked questions

How Bankrate rates National Funding

Overall Score 4.5
Accessibility 4.8 Most eligibility requirements are relaxed except for its required annual revenue.
Affordability 3.8 Starting rates are competitively low.
Transparency 5.0 More information is needed on its website regarding maximum rates.
Customer experience 3.9 A fast application and quick approvals help this lender stand out.
Flexibility 5.0 Early payoff discounts and a guaranteed lowest payment for leases are two standout options.

Methodology

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47
years in business
Credit Card Search Icon
30+
lenders reviewed
Loan Icon
22
loan features weighed
Rates Icon
770+
data points collected

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 30 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 Bankrate.com 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.

What small business owners think

CTA National Funding Small Business Loans has 15 reviews

National Funding Small Business Loans has 15 reviews

Dive into community reviews below and see what others think about National Funding Small Business Loans.

4.3 Star Icon
15 ratings
Info Icon
Score breakdown
5 stars
40%
4 stars
53%
3 stars
7%
2 stars
0%
1 star
0%
Score by category
Customer experience 4.4 / 5
Accessibility rating 4.5 / 5
Affordability rating 4.1 / 5
Transparency rating 4.5 / 5
Flexibility rating 4.4 / 5

Community Reviews

See what users like you are saying about National Funding Small Business Loans.
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Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes I explained what I needed in my business and they worked with me.
Score by category
Flexibility rating 5 / 5
Transparency rating 5 / 5
Accessibility rating 5 / 5
Affordability rating 5 / 5
Customer experience 5 / 5
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
Yes, definitely. They answered every question that I had. They really made me feel like I was apart of the family.
Score by category
Flexibility rating 4 / 5
Transparency rating 5 / 5
Accessibility rating 4 / 5
Affordability rating 3 / 5
Customer experience 5 / 5
Overall
What was your biggest pain point during the application process?
do the work its worth it at the end
Score by category
Flexibility rating 3 / 5
Transparency rating 3 / 5
Accessibility rating 5 / 5
Affordability rating 2 / 5
Customer experience 3 / 5
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
The lender was able to clearly explain their loans in easy to understand terms. They were able to answer all the questions I had, I had a lot of questions, with no hesitation and in terms I had no issues understanding. After talking to their representatives and reading all of the information on and off line I felt confident I had enough info information to feel confident about getting a loan from them.
Score by category
Flexibility rating 4 / 5
Transparency rating 5 / 5
Accessibility rating 4 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
Yes I was able to contact them all the time and the process is very simple.
Score by category
Flexibility rating 5 / 5
Transparency rating 3 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes, they were receptive and helped me with a loan that had a reasonable interest rate. Overall, the lender was willing to work with me and listened to me.
Score by category
Flexibility rating 5 / 5
Transparency rating 5 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes they were professional and acted in a timely orderly fashion.
Score by category
Flexibility rating 4 / 5
Transparency rating 4 / 5
Accessibility rating 4 / 5
Affordability rating 4 / 5
Customer experience 4 / 5
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
Yes, they were very specific and detailed about their product.
Score by category
Flexibility rating 5 / 5
Transparency rating 3 / 5
Accessibility rating 3 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
Yes, I was able to contact the lender, either by phone or email. It was easy to do.
Score by category
Flexibility rating 4 / 5
Transparency rating 5 / 5
Accessibility rating 4 / 5
Affordability rating 5 / 5
Customer experience 4 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
It was very simple exactly how it should be. Contacting was also simple.
Score by category
Flexibility rating 5 / 5
Transparency rating 4 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 3 / 5

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