National Funding

Business-Loans · CA

Rating: 3.8/5

National Funding logo

National Funding is a San Diego-based direct lender founded in 1999 that has provided over $4.5 billion to 75,000+ businesses, offering small business loans up to $500K and equipment financing up to $150K with 24-hour funding and no collateral required.

Official Website

https://www.nationalfunding.com

National Funding Review

National Funding Inc. is a direct small business lender headquartered in San Diego, California. Founded in 1999, the company has provided more than $4.5 billion in financing to over 75,000 businesses across the United States, giving it one of the longest operating histories in the online business lending space. National Funding holds California Finance Lender License 603A169.

The company offers three primary products. Small business loans range from $5,000 to $500,000 with 12 to 18-month repayment terms and 24-hour funding. Equipment financing and leasing covers amounts up to $150,000 with 100 percent financing available and no down payment required — the equipment itself serves as collateral, and purchases may qualify for Section 179 tax deductions. National Funding also offers bad credit business loans as a distinct product line for borrowers who may not qualify through traditional channels.

National Funding's key differentiators are its no-collateral and no-prepayment-penalty policy on small business loans. Unlike many alternative lenders that require a general lien on business assets, National Funding's working capital loans are unsecured. The absence of prepayment penalties means borrowers can pay off their balance early without additional cost, which can significantly reduce the total cost of borrowing.

The minimum personal credit score requirement is 670, which is moderate for the alternative lending space. Equipment financing requires a minimum of 6 months in business. The company does not publicly disclose minimum revenue requirements, APR ranges, or detailed fee structures. Repayment is handled through automatic daily or weekly deductions from the borrower's business bank account.

National Funding has developed industry-specific financing programs for sectors including construction, trucking, agriculture, medical practices, landscaping, and senior care facilities. This specialization allows the company to underwrite businesses in industries that generalist lenders often avoid or penalize with higher rates.

The company's 25-year track record since 1999 and $4.5 billion in funded volume demonstrate sustained operations through multiple economic cycles, including the 2008 financial crisis and the 2020 pandemic. However, the short 12 to 18-month term lengths on small business loans mean higher effective monthly payments compared to longer-term SBA or bank products, and the equipment financing cap of $150,000 may be insufficient for businesses needing heavy machinery or fleet vehicles.

For business owners exploring financing options, the landscape includes several distinct products. Small business loans provide lump-sum working capital with fixed repayment terms, while a business line of credit offers flexible revolving access to funds as needed. SBA loans through government-backed programs offer the lowest rates but require longer approval timelines.

For businesses with outstanding invoices, invoice factoring converts receivables into immediate cash flow. Equipment financing allows companies to acquire machinery and technology with the equipment itself as collateral. A merchant cash advance provides fast business funding by purchasing a share of future sales, though typically at higher effective costs.

Startups and newer businesses may find working capital loan options through alternative lenders with lower qualification requirements than traditional banks.

Pros & Cons

Reader-focused summary of the strongest reasons to consider National Funding and the factors most worth weighing before contracting. Individual outcomes depend on your credit situation and goals.

Pros

  • ✓No collateral required on small business loans and no prepayment penalty — pay off early without extra cost
  • ✓24-hour funding on small business loans for fast access to working capital
  • ✓Equipment financing with 100% financing, no down payment, and Section 179 tax deduction eligibility
  • ✓Industry-specific programs for construction, trucking, agriculture, medical, landscaping, and senior care
  • ✓$4.5 billion funded since 1999 — 25+ year track record through multiple economic cycles
  • ✓California Finance Lender License 603A169 — regulated and licensed direct lender

Areas to Consider

  • !No APR, interest rate, or fee information published on the website
  • !Short 12-18 month repayment terms mean higher effective monthly payments than SBA or bank loans
  • !Equipment financing capped at $150,000 — insufficient for heavy machinery or fleet vehicles
  • !Minimum revenue requirement not disclosed, making it hard to self-qualify before applying
  • !Repayment via daily or weekly automatic deductions can strain cash flow for seasonal businesses

Verdict Summary

National Funding works best for consumers who value no collateral required on small business loans and no prepayment penalty — pay o and can accept the tradeoff of no apr, interest rate, or fee information published on the website. Compare against similar providers below before signing any contract.

Services & Features

Services offered

Feature Checklist

✓Term Loans
✗Sba Loans
✗Lines Of Credit
✓Equipment Financing
✗Invoice Factoring
✗Merchant Cash Advance
✗Commercial Real Estate
✗Startup Loans
✓Online Application
✗Mobile App
✗Online Portal
✓Dedicated Advisor
✓Min Loan Amount
✓Max Loan Amount
✓Min Credit Score
✓Min Time In Business
✓Min Annual Revenue
✓Funding Speed
✓Collateral Required
✗Personal Guarantee Required
✗Sba Approved Lender

Best For

Before You Contact National Funding

Before signing up with any Business Loans provider, review these safeguards:

Compare Your Needs With National Funding

Match these decision factors against National Funding's profile before committing. This rubric mirrors what independent consumer-finance research typically checks for Business Loans providers.

Category

Business Loans

Service scope

8 services listed

Geographic coverage

1 states

Match to your priorities

  • ●
    Budget priority: Pricing published above — factor in setup, monthly, and cancellation fees over the full expected service window.
  • ●
    Complexity priority: Consider National Funding's stated strengths (No collateral required on small business loans and no prepayment penalty — pay off early without ...) against your specific credit situation.
  • ●
    Timeline priority: Business Loans typically takes 3-6 months for meaningful outcomes. Providers guaranteeing overnight results are red flags under federal consumer protection law.
  • ●
    Recourse priority: Confirm state licensing via your state regulator and check the CFPB complaint database before contracting.
  • ●
    Alternatives: Compare against all Business Loans providers, DIY options via non-profit counseling agencies, and free CFPB resources.

Pricing

  • Monthly Price: 0
  • Setup Fee: 0
  • Money Back Guarantee: False
  • Guarantee Details:
  • Free Consultation: True
  • Tiers: [{'name': 'Small Business Loan', 'price': 0, 'features': ['Amount: $5,000 - $500,000', '12-18 month repayment terms', '24-hour funding', 'No collateral required', 'No prepayment penalty', 'Minimum 670 personal credit score', 'Daily or weekly automatic repayment', 'APR not published']}, {'name': 'Equipment Financing / Leasing', 'price': 0, 'features': ['Amount: Up to $150,000', '100% financing — no down payment', 'Equipment serves as collateral', '6 months minimum time in business', 'Section 179 tax deduction eligible', 'Industry-specific programs available', 'No prepayment penalty']}, {'name': 'Bad Credit Business Loans', 'price': 0, 'features': ['Amount: $5,000 - $500,000', 'Designed for borrowers with credit challenges', 'No collateral required', '24-hour funding available', 'Daily or weekly automatic repayment']}]
  • Currency: USD

Frequently Asked Questions

What services does National Funding offer?

National Funding offers 8 services including Small business loans from $5,000 to $500,000 for working capital, Equipment financing and leasing up to $150,000 with no down payment, Bad credit business loans for borrowers with credit challenges, Industry-specific financing for construction, trucking, agriculture, medical, landscaping, and senior care, 24-hour funding on approved applications, and 3 more. Confirm current service list directly with the provider before contracting.

Who is National Funding best suited for?

National Funding's profile signals suggest it may fit: Established small businesses needing fast $5K-$500K working capital without pledging collateral or facing prepayment penalties; Industry-specific businesses (construction, trucking, agriculture, medical) seeking equipment financing up to $150K with no down payment; Borrowers with 670+ credit who prioritize speed (24-hour funding) and flexibility (no prepayment penalty) over lowest rate. Individual outcomes vary based on your specific situation.

What are the strengths and weaknesses of National Funding?

Key strengths: No collateral required on small business loans and no prepayment penalty — pay off early without extra cost; 24-hour funding on small business loans for fast access to working capital; Equipment financing with 100% financing, no down payment, and Section 179 tax deduction eligibility. Areas to consider: No APR, interest rate, or fee information published on the website; Short 12-18 month repayment terms mean higher effective monthly payments than SBA or bank loans.

How does National Funding compare to similar companies?

In the Business Loans category, comparable providers include Square Financial Services, Fora Financial, Mulligan Funding, LLC. Each company has different strengths, so compare services, pricing, and consumer complaint records before deciding what to do next.

Where does National Funding operate?

National Funding serves customers in 1 states including California. Confirm current service availability in your state directly with the provider.

How much does National Funding cost?

Listed pricing for National Funding: monthly price: 0; setup fee: 0; money back guarantee: False. Pricing may change — verify current fees directly with the provider before signing any contract.

Visit National Funding

State Consumer Finance Context

This is state-level context for Business Loans consumers in California. It does not confirm that National Funding or this specific location is licensed.

State regulator: California Department of Financial Protection and Innovation (DFPI)
Consumer protection: California Attorney General Consumer Protection

Credit and debt help rules in California

Key state rules to check

Payday lending in California: Legal (max $300)

Usury cap: 10% for personal/consumer loans (Article XV, CA Constitution); payday loans capped at $15 per $100

Complaint resources

State references

California regulates payday loans at a maximum of $300 with a $45 fee cap. The DFPI oversees all consumer lending and enforces the California Consumer Financial Protection Law. Consumers have strong rights under the state's comprehensive lending regulations, including the ability to file complaints online with the DFPI.

Similar Companies ⓘ

Comparable Business Loans providers with similar service scope. Ratings reflect stored review context; verify current licensing and pricing directly before contracting.

Square Financial Services logo

Square Financial Services

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F

Fora Financial

Fora Financial provides small business term loans up to $1.5M, revenue advances, lines of credit, SBA loans, and equipment financing with published factor ra...

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Notable: Publishes factor rates (1.13-1.50) unlike most competitors who hide pricing

Mulligan Funding, LLC logo

Mulligan Funding, LLC

Mulligan Funding offers working capital and term loans up to $5M for established businesses with $750K+ annual revenue, same-day funding, human underwriters,...

Rating 4.4/5

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Notable: Loan amounts up to $5M — among the highest ceilings in alternative lending

SmartBiz Bank, N.A. logo

SmartBiz Bank, N.A.

SmartBiz Bank, N.A. is a national bank and SBA 7(a) lender specializing in small business financing, offering SBA loans ($50K-$350K), bank term loans, and bu...

Rating 4.0/5

Read review →

Notable: SBA-approved lender with $9B+ funded — proven track record

Celtic Bank logo

Celtic Bank

Celtic Bank is a Utah-chartered industrial bank and top-10 SBA lender offering SBA 7(a), SBA 504, USDA B&I, equipment, construction, renewable energy, and co...

Rating 3.7/5

Read review →

Notable: Top 10 SBA lender every year since 2013 — proven consistency

Accion Opportunity Fund logo

Accion Opportunity Fund

Accion Opportunity Fund provides business funding solutions and coaching for entrepreneurs seeking capital and growth support.

Rating 4/5

Read review →

Notable: Combines business funding with coaching services for holistic business support

Allies for Community Business logo

Allies for Community Business

Chicago-based nonprofit lender providing loans up to $500K, grants, coaching, and business support services primarily to underserved entrepreneurs including ...

Rating 4.1/5

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Notable: Loans available up to $500,000 for small business growth and expansion

OnDeck logo

OnDeck

OnDeck is one of America's largest online small business lenders, a subsidiary of Enova International, offering term loans up to $400K and lines of credit up...

Rating 3.9/5

Read review →

Notable: Same-day funding Monday through Friday for applications approved before 10:30 AM ET, with instant LOC draws available 24/7

Related Questions

Quick Summary

National Funding — Business Loans in CA.

Overall rating: 3.8/5

National Funding is a San Diego-based direct lender founded in 1999 that has provided over $4.5 billion to 75,000+ businesses, offering small business loans up to $500K and equipment financing up to $150K with 24-hour...

Visit National Funding

Next Steps

  1. Compare National Funding against similar options above.
  2. Run our borrowing power quiz to see how National Funding matches your situation.
  3. Check state regulator listings for National Funding's licensing before committing.
  4. Visit National Funding once you're ready.

Glossary of Terms

Common terms that come up when comparing Business Loans providers. Full glossary at creditdoc.co/glossary/.

APR — Annual Percentage Rate
The total yearly cost of borrowing money, including the interest rate plus any fees the lender charges. Think of it as the 'true price tag' on a loan.
Why it matters: Lenders must show APR by law (Truth in Lending Act) because the interest rate alone can hide fees. Comparing APR across lenders is the most reliable way to find the cheapest loan.
Example: You borrow $10,000 at 6% interest for 3 years, but there's a $300 origination fee. The interest rate is 6%, but the APR is 6.9% because it includes that fee. You'd pay $304/month and $946 total in interest.
Cosigner — Loan Cosigner
A person who agrees to repay your loan if you can't. They're equally responsible for the debt, and their credit is affected by your payment behavior.
Why it matters: Cosigning helps people with thin credit get approved or get better rates. But it's a huge risk for the cosigner — they're on the hook for the full amount if you default.
Example: A parent cosigns their child's $30,000 student loan. The child stops paying after 6 months. The parent is now legally required to make the payments or face collections, lawsuits, and credit damage.
Interest Rate
The percentage a lender charges you for borrowing their money, calculated on the amount you still owe. It's the lender's profit for taking the risk of lending to you.
Why it matters: Even a 1% difference in interest rate can cost you thousands over a loan's life. Lower rates mean less money out of your pocket.
Example: On a $20,000 car loan for 5 years: at 5% you pay $2,645 in interest. At 8% you pay $4,332. That 3% difference costs you $1,687 extra.
Loan Term (Tenor) — Loan Term / Tenor
How long you have to repay the loan, measured in months or years. A shorter term means higher monthly payments but less total interest paid.
Why it matters: Longer terms feel more affordable monthly but cost much more overall. A 30-year mortgage costs almost double in interest compared to a 15-year mortgage on the same amount.
Example: Borrowing $200,000 at 6.5%: A 15-year term costs $1,742/month ($113,561 total interest). A 30-year term costs $1,264/month ($255,088 total interest). You save $141,527 with the shorter term.
Origination Fee — Loan Origination Fee
A one-time fee the lender charges to process and set up your loan. It covers their costs for underwriting, verifying your information, and preparing paperwork.
Why it matters: Origination fees are usually 1-8% of the loan amount and are often deducted from your loan proceeds — so you receive less than you borrowed.
Example: You're approved for a $10,000 personal loan with a 5% origination fee. The lender deducts $500 upfront, so you receive $9,500 in your bank account but owe $10,000 plus interest.
Principal — Loan Principal
The original amount of money you borrowed, before any interest or fees are added. It's the 'real' amount of your debt.
Why it matters: Your interest is calculated on the principal. Paying extra toward principal (not just interest) is the fastest way to reduce your total cost and pay off a loan early.
Example: You borrow $25,000 for a car. That $25,000 is your principal. Your first payment of $450 might split as $150 toward interest and $300 toward principal, bringing your balance to $24,700.
Underwriting — Loan Underwriting
The process where a lender evaluates your finances — income, debts, credit history, assets — to decide whether to approve your loan and at what rate.
Why it matters: Understanding what underwriters look for helps you prepare a stronger application. They check your DTI ratio, employment stability, credit score, and the asset's value.
Example: You apply for a mortgage. The underwriter reviews your pay stubs (income), bank statements (savings), credit report (history), and orders an appraisal (home value). This takes 2-4 weeks.
Amortization — Loan Amortization
The process of paying off a loan through regular payments that cover both principal and interest. Early payments are mostly interest; later payments are mostly principal.
Why it matters: Understanding amortization explains why paying extra early in a loan saves the most money — you're reducing the principal that interest is calculated on.
Example: Month 1 of a $200,000 mortgage at 6%: your $1,199 payment splits as $1,000 interest + $199 principal. By month 300: only $47 goes to interest and $1,152 goes to principal.
Balloon Payment
A large lump-sum payment due at the end of a loan, after a period of smaller monthly payments. The loan isn't fully paid off by the regular payments — the balloon settles it.
Why it matters: Balloon payments make monthly payments look affordable but create a financial cliff. If you can't pay or refinance at the end, you could lose your home or asset.
Example: A 5-year balloon mortgage on $200,000: you pay $1,054/month (as if it were a 30-year loan), but after 5 years you owe a balloon of $186,108 all at once.
Collateral — Loan Collateral
An asset you pledge to the lender as security for a loan. If you stop paying, the lender can seize and sell that asset to recover their money.
Why it matters: Secured loans (with collateral) have lower interest rates because the lender has less risk. But you could lose your home, car, or savings if you default.
Example: A mortgage uses your house as collateral. A car loan uses your vehicle. A title loan uses your car title. If you miss payments, the lender can foreclose or repossess.
Credit Bureau — Credit Reporting Agency (Bureau)
A company that collects and sells information about your credit history. The three major bureaus are Equifax, Experian, and TransUnion.
Why it matters: Not all lenders report to all three bureaus, so your reports may differ. You should check all three reports because an error on one could be costing you money.
Example: Your car loan only reports to Equifax and TransUnion. Your Experian report doesn't show that good payment history, so your Experian score is 15 points lower.
Credit Freeze — Security Freeze / Credit Freeze
A free tool that locks your credit report so no one (including you) can open new accounts until you lift it. It's the strongest protection against identity theft.
Why it matters: A credit freeze prevents criminals from opening loans in your name, even if they have your Social Security number. It's free by law and doesn't affect your credit score.
Example: Your data was in a breach. You freeze your credit at all 3 bureaus (takes 10 minutes online). A thief tries to open a credit card in your name — denied because the lender can't pull your frozen report.
Credit Mix — Credit Mix (Types of Credit)
The variety of credit accounts you have — credit cards (revolving), auto loans (installment), mortgage, student loans, etc. Having multiple types shows you can manage different kinds of debt.
Why it matters: Credit mix accounts for about 10% of your FICO score. Having only credit cards isn't as strong as having a card, an installment loan, and a mortgage.
Example: Borrower A has 3 credit cards. Borrower B has 2 credit cards, a car loan, and a student loan. Even with the same payment history and utilization, Borrower B's score is typically higher.
Credit Report — Consumer Credit Report
A detailed record of your borrowing history maintained by credit bureaus. It lists every loan, credit card, payment history, collection, and public record tied to your name.
Why it matters: Errors on credit reports are common — 1 in 5 consumers has at least one mistake. Checking your report regularly is the first step to fixing errors that are costing you money.
Example: You pull your free report from AnnualCreditReport.com and find a $2,400 medical collection you already paid. You dispute it, the bureau verifies it's resolved, and your score goes up 40 points.
Credit Score
A 3-digit number (300-850) that summarizes how reliably you've handled borrowed money. Higher scores mean lower risk to lenders and better loan terms for you.
Why it matters: Your credit score determines whether you get approved and at what rate. A 100-point difference can mean thousands of dollars more or less in interest over a loan's life.
Example: On a $250,000 30-year mortgage: a 760 score gets you 6.2% ($1,536/month). A 660 score gets 7.4% ($1,729/month). Over 30 years, the lower score costs you $69,480 more.