National Funding Review: We Suggest You Pass on This Secretive Lender
National Funding isn’t the biggest or most well known of the business lenders out there. But if you’ve come across this online lender and wondered if it might be right for you, then we’ve got answers.
In this review, we’ll tell you about what National Funding has to offer (spoiler: a business loan, equipment financing, and a merchant cash advance). We’ll also tell you about why you might or might not want to apply with this alternative lender.
National Funding isn’t the best lender (but it’s not the worst either)
Here at Business.org, we know that different businesses have different needs. So yes, we definitely have our favorite lenders (as seen on our rankings of the best small-business loans). But we know that those lenders won’t work for everyone, which is why we always try to point out what makes even our less-liked lenders great for certain businesses.
We’ll be honest, though: after lots of research and lots of thought, we have a hard time saying that National Funding is best for any business. That’s in part because it has some very real cons―like high interest rates and a complete lack of transparency.
It’s also because National Funding doesn’t have any real standout features. It doesn’t have the lowest credit requirements, the fastest funding times, the most financing products, the best customer reviews―you get the idea.
Min. credit score
Min. time in business
Working capital loans
Merchant cash advances
$3,000/mo. in credit card transactions
To be clear, we’re not saying National Lending is the worst lender out there. It has pretty good customer reviews, after all. It’s just that there are so many better options for business loans that we don’t know why National Lending should be any business owner’s first choice for funding.
Of course, we ultimately defer to your knowledge of your own situation. So we’ll go ahead and walk you through the details of National Funding. Maybe you’ll like what you see. And if you don’t, then we suggest you find a different alternative business lender for your financing needs.
National Funding financing details
Data effective 6/3/20. At publishing time, pricing is current but subject to change. Offers may not be available in all areas.
Note that National Funding’s website is pretty sparse on the details for these products. We tried reaching out to National Funding directly for more information, but as of this writing, it has yet to respond. With that said, here are the few details we do know.
National Funding’s working capital loans come in a nice range of loan amounts, from a small $5,000 to half a million dollars. They have pretty short repayment terms, though. You get between four months and two years to repay your National Funding loan, which makes these short-term loans.
If you need equipment financing, National Funding offers both loans and leasing options. It lets you use your loan funds on both new and used equipment. The repayment terms on these loans are longer than on its working capital loans: you can get up to five years to pay off your equipment financing.
You can also get merchant cash advances (MCAs), which give you upfront cash in exchange for part of your future credit card sales. We generally don’t recommend merchant cash advances, thanks to sky-high rates and confusing lending practices. But if you do want one, you’ll just have to submit four months of credit card statements to apply. National Funding offers same-day approval and next-day funding for MCAs.
Now, at this point, you might be wondering what kind of interest rate you can expect to get, or how hefty of an origination fee you should expect. Well, we wish we could tell you.
Unfortunately, National Funding doesn’t list any interest rates, factor rates, or fees for any of these products on its website. We’ve seen reports of rates starting at 15% (quite high), but we’ve been unable to confirm that ourselves―despite reaching out to National Funding directly.
Speaking of which, let’s talk about one of our biggest concerns with National Funding.
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National Funding’s lack of transparency
As we’ve mentioned a few times now, National Funding doesn’t reveal much on its website. We think that’s a problem.
Take its types of funding, for example. For a company that wants you to borrow money, National Funding makes it surprisingly hard to figure out what types of financing it even offers. Its top header only lists small-business loans and equipment financing, while its footer lists all these:
- Small-business loans
- Equipment financing and leasing
- Merchant cash advances
- Working capital loans
- Business loans for bad credit
- Unsecured business loans
It’s hard to tell which of these are actual products National Funding offers and which are just articles for SEO reasons. After a lot of reading and comparing, we’re pretty confident it only has the three products we discussed in the previous section (working capital loans, equipment financing, and merchant cash advances). But it’s hard to tell.
Trying to get details on those products is even worse. As we said, National Funding doesn’t list any interest rates or fees. Likewise, it doesn’t include much information about borrower requirements (such as credit score or revenue).
So why does this concern us so much?
Well, put simply, it means National Funding is wasting your time. National Funding wants you to apply for financing without knowing if you’ll actually qualify. And it wants you to apply without giving you any idea about the kind of costs associated with those loans. That’s ridiculous.
Sure, all lenders get a little cagey about exact rates and fees. After all, your APR (annual percentage rate) usually depends a lot on your qualifications, like your credit score and revenue. But most lenders at least list some kind of starting point, unlike National Funding.
Can you imagine buying a television and not having any idea how much it will cost until you check out―not even a ballpark number? Of course not. Then why should National Funding expect you to give up your time and personal information for something that’s a much, much bigger commitment and expense than a television?
And the lack of information doesn’t stop there―as you’ll see in National Funding reviews.
National Funding customer reviews
Let’s be clear: National Funding primarily has positive customer reviews. In fact, it’s got a 4.6 out of 5 on Trustpilot.1 That’s pretty good.
The positive reviews praise the easy application process and the fast funding turnaround. We also saw lots of praise for specific customer service reps.
Those are obviously good things that we like seeing.
(For reference, you’ll see similar positive reviews from many alternative lenders. We didn’t see anything in positive reviews that made National Funding stand out from other lending choices.)
And again, the vast majority of the reviews are positive. We don’t want to give you the wrong idea here. But if we’re being honest, the few negative reviews give us pause.
Negative National Funding reviews mention some of what you’d expect, like high interest rates. But we saw quite a few reviews that suggest National Funding doesn’t get any more transparent after you apply for a loan.
For example, we saw reviewers complaining about hidden origination fees that they weren’t told about. (And for sure, National Funding’s website doesn’t mention its fees at all.)
Even more concerning, we saw multiple reports of borrowers who signed loan paperwork with National Funding and then got radio silence. No funding and no explanation for several days.
We also saw disgruntled reviewers complaining about National Funding’s deceptive discount program. See, National Funding offers borrowers a discount when they repay their loans early. If you repay your working capital loan within the first 100 days after borrowing, you get a 7% discount on your remaining balance. Neat, right?
Well, evidently, National Funding calculates the 100 days for that discount differently than it calculates payment days. According to customers, its regular payment schedule only includes business days, while its discount schedule includes weekends and holidays―but no one told these reviewers that. So they paid off their loan before their 100th daily payment, only to find out that it didn’t qualify for a discount at that point.
Now, complaints about high rates and even origination reviews are common in lending reviews. We see them all the time. But these other complaints? We haven’t seen them from other lenders.
Yes, most National Funding reviews are positive. You can probably borrow from National Funding and have a relatively good experience.
But the specific content of the negative reviews, plus what we already observed about National Funding’s general lack of transparency, make us hesitant to actually recommend this lender.
Because sure, it might not be a horrible predatory lender that you should absolutely avoid. But honestly, there are better lenders out there―lenders that don’t hide as much information as possible and then leave borrowers in the lurch. And frankly, we think you’ll have a better experience with them.
Fundbox offers an exciting new way to access old kinds of funding—invoice financing and lines of credit. Its automated application process means you can get approved and funded quickly, even if you haven’t been in business for several years or if you don’t have a perfect credit history. We recommend Fundbox for small businesses who need help with cash flow, especially due to unpaid invoices.
However, Fundbox does come with high APRs and relatively low credit limits, so some more established businesses may want to look elsewhere.
At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.
- SmallBizDaily, “Small Business Owners Struggle with Cash Flow Problems, Survey Shows”