National Funding is a business finance company based out of California, and it offers loans to small businesses, which are yet to qualify getting a loan from banks.
However, similar to most of its competitors, they do not require any collateral or a high credit score.
Also, you experience a swift online business funding, as well as merchant cash advances.
But, National Funding rates are somehow punishable, because their swift funding process needs you to pay a section of advance or loan on a daily basis.
It is advisable you check our comparison chart of short-term funding, and confirm you are not eligible for many traditional capital sources before getting into the world of merchant cash advances.
National Funding protects a lot of their information therefore making it a little difficult to carryout a complete risk assessment. Also, hiding most information raises a lot of questions.
Nevertheless, the customer base of the company is well established, and well rated by Better Business Bureau.
Here are the kinds of business funding from National Funding:
- Medium-term business loan.
- Short-term business loan.
- Merchant cash advances.
Qualifications for Borrowing
Although business funding from National Funding is swift, its costly. All, businesses with bad credit score qualifies to get some funding, because companies such as National Funding are mostly concerned about the amount of revenues you are generating, instead of the history of your credit score.
Here are the requirements for funding qualification:
- Age of business: 12months
- Credit Score: 500 for a loan
- Revenue: 100k/year
Your credit card sales should have a minimum of $3000/month, in order to qualify for a merchant cash advance.
Details about conditions and charge on National Funding website are limited. However, here are the range of offers you should expect from the company:
- Amount to Borrow: $250k max for MCA
- $5k-$500k for loans
- Condition Duration: 4-24months
- Interest Rate: x1.15-x1.3
- Origination Charge: 1%-5%
- Efficient APR: check on site
- Collateral: N/A
Similar to its competitors, National Funding applies a flat charge structure. To know the amount you will be repaying, just use the factor rate to multiply the amount you borrowed. The factor rate for National Funding is 15%-30%. Besides, you will incur the origination charges, at a rate of 1%-5%.
You do not need any collateral, because all national products are unprotected.
You will be making daily payments, for both merchant advance and loans. For loans, you will pay a fixed daily debit through an automated clearing house (ACH), although some products accept weekly payments.
For cash advances, a specific percent of your daily credit card revenue will be held back for repayment. However, there are no fixed terms on advances, because your cash flow determines your repayments.
Early repayment discount is offered by National Funding. Therefore, you get a 6% discount whenever you pay all your balance early. If possible, you should utilize the advantage.
The process of applying
Swift and user-friendly application process is among the benefits of alternative funders, such as National Funding.
You can either call their sales to initiate the process, or do it online. Although you can use online if convenient, it is easier to reach the sales team. You only need your bank statement for three months, to verify your income.
Although National Funding’s sales and website are good for non-traditional lenders, the general information provided regarding products provided by National Funding is not helpful for making comparison with other alternative lenders.
Sadly, National Funding personnel does not offer direct and precise information. Therefore, until you make an application to get a quote, you cannot know their specific rates.
It is easier to reach the National Funding sales staff. However, the staff does not offer informative information that you should know.
National Funding has an A+ rating on BBB, despite existing for a long time. Although most reviews are positive, there are some negative reviews, because of these issues:
- Costly: although business practices from National Funding are good for MCA industry, the fees are very high for most customers.
- Qualification is not easy: some customers were disqualified after passing the entire application process, despite National Funding sending them pre-approval notice.
- Bad sales techniques: customers receive many cold calls and unsafe mails from the company.
National Funding has a 9.3/10 rating on TrustPilot. Customers are impressed by:
- Swift and friendly application process: unlike other traditional lenders, National Funding has a swift and friendly application process.
- Easy Renewals: you can easily access more funding from the company, if you adhere to making repayments.
- Qualification of bad credit: qualifying is easier, because their MCA requirements are low.
National Funding is among the oldest non-traditional lenders existing today. Since establishment, the company has maintained a positive reputation from its customers, due to their service.
However, comparison shopping is not possible for most customers, because most vital information that you should know has been kept a secret.
Nonetheless, National Funding rates are good for an alternative lender, although you should be on the lower range of their origination charges, as well as factor rates.