A Deep-Dive National Funding Review: Should You Accept an Offer? (2024)
If you run a business and you’re in the market for outside capital, you may have received a National Funding offer in the mail (perhaps for “up to $300K” with a piece of cardboard that resembles a credit card) or seen an ad online. At first glance, it probably sounds enticing or at least mildly interesting. But, you need to know more before you take a leap and get your company or yourself into the wrong kind of debt.
Here, we’re always on the lookout for small business funding opportunities and want to give you the most honest, unbiased information you can find about your options. While National Funding has been around since 1999, we haven’t done a deep dive analysis on their loans and financing offer… until now. Today, let’s explore everything you need to know about the lender so you can decide if they’re right for you!
Is National Funding legit? Here’s what we’ll cover:
What is National Funding?
Who Owns National Funding?
Does National Funding Report to Credit Bureaus?
How to Qualify for a National Funding Loan
Small Business Funding Offer Overview
1. Small Business Loans
2. Business Loans for Bad Credit
Conclusion
Now, let’s get to it!
What is National Funding?
National Funding, Inc. is a privately-held small business debt-financing lender based in San Diego, California. They’ve been around since 1999 and you’ll find 72 National Funding reviews in a Google search, so they’re reputable. Business owners trust them for what they offer. But, not every lending offer is the right fit for every situation.
At this institution, there are three core funding offers:
Small business loans
Business loans for bad credit
Equipment financing and leasing
When you see a company offering any type of financing for bad credit, it’s wise to be discerning. In fact, I always recommend business owners educate themselves on how to repair their credit before getting into “bad debt” since it’s not as difficult as most people assume.
Who Owns National Funding?
National Funding was founded by Dave Gilbert. Gilbert has been with the company for over 22 years and acts as the present-day CEO.
According to LinkedIn, Gilbert launched the company just two years after graduating from USC Marshall School of Business where he received his BS in Entrepreneurship. He is a financial supporter of several sports-related charities, essentially sponsoring local teams.
Does National Funding Report to Credit Bureaus?
Other than on their blog, National Funding doesn’t mention any credit bureaus on their website. Nor could we find any lendees to tell us whether or not they report. So, as of today, no, National Funding does not report on-time payments (or poor payment history, for that matter) to credit bureaus.
Low-interest, legitimate business credit is typically based on a credit score. Sometimes lenders use a founder’s FICO score while others use a business credit score from a reputable business credit bureau like to determine a business’ creditworthiness. It doesn’t seem like that’s the case with National Funding’s business loans for bad credit.
How to Qualify for a National Funding Loan
If National Fundings’ creditworthiness is not necessarily based on a credit score, it has to be based on something else. You can get business funding in as little as 24 hours after approval with full documentation of three-months’ business bank statements, which will determine your loan amount.
When you apply on the website, you’ll be asked to provide some contact information as well as your annual gross income. If you received an offer in the mail, you’ll be asked to share your invitation number (probably to track marketing efforts).
Once you submit your info, you will be redirected to the application process where you will first be asked for your personal FICO score.
If your income is above $12.5K per month, you can continue with the application process.
And, if your income is less than required, but your FICO score is above 650, you will be redirected to “apply for a credit card” with Eve Financial. Eve Financial is a newer company that essentially processes your information and matches you with a lender. National Funding likely gets a commission from every loan approved through the platform.
Now, back to the National Funding application process. If your income qualifies you, you’ll be asked to share more information. You’ll also be opted in to receive text messages if you don’t uncheck the box to revoke permission, so read carefully as you proceed.
The National Funding website will generate some forms for you to sign electronically. This only takes a few moments before you will be asked to prove your business income by uploading electronic business bank statements. If you have enough revenue, you’ll qualify.
Small Business Funding Offer Overview
If your business generates $12.5K or more per month and you’re still reading, it’s important to look at what kind of funding you might qualify for. Here’s a closer look at the three funding offers from National Funding.
1. Small Business Loans
Essentially, a “small business loan” through National Funding is a working capital loan or cash advance, intended for short-term needs. Your debt will be repaid through a percentage of each ACH transaction through your credit card processor, which is how they can use business income alone as a qualifying factor.
In the case of National Funding, youcan expect a pretty hefty “flat fee,” also paid as a percentage of each transaction and in addition to any processing fees.
2. Business Loans for Bad Credit
National Funding’s “business loans for bad credit” are essentially the same a the small business loans but with higher fees. Instead of looking at your credit, the company examines your income. Your fees will be higher than with more traditional business financing.
If you feel like you won’t qualify for a more traditional funding option like a term loan, line of credit, or credit card, and you’re in a pinch, companies like National Funding do have money to offer.
Recommended: Credit Secrets Book Review: Can You Erase Bad Credit History?
3. Equipment Financing & Leasing
Finally, National Funding offers equipment leasing and financing. Essentially, if a piece of equipment breaks and you need it to operate, you can use a lender like this to help you replace it. In this case, funding could be necessary fast and it wouldn’t be a bad idea to pay a higher flat fee to keep your doors open.
Disclosure: In addition to these three funding options, National Funding advertises “merchant cash advances,” “working capital loans,” “unsecured business loans.” They also target specific industries like construction, commercial trucking, agriculture, medical practice, landscaping, and senior care. Their offers are almost the same across the spectrum, unchanging by title.
Recommended: How a Trucking Company in Snellville, GA Got Over $200K in Businesss Credit
Conclusion
If you have poor credit, an immediate business need, and your revenue is at least $12.5K per month, National Funding might be right for you. The company has been in business long enough to prove that they’re legit. However, I almost never recommend a business owner apply for this type of funding. Instead, learn how to qualify for better funding options through business credit coaching.
National Funding themselves talk about trade credit, business credit scores, and building your business credit score. I commend them for it, but recommend you steer clear unless you are facing an emergency. There’s a better way.If you want to learn how to qualify for $100K in business credit in 30 days, join Bussiness Credit Workshop today.
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How to Get a Business Credit Card – The Ultimate Guide
Is National Funding a legitimate company? Yes. National Funding is a privately held small-business financing company based in San Diego. The company has been in operation since 1999 and accredited by the Better Business Bureau since 2013.
A spokesperson provided additional information about National Funding's equipment financing: The minimum credit score needed is 650. Businesses will need to be operating for at least two years, and origination fees range from one percent to three percent.
As a direct lender, National Funding has the ability to approve more applications than other lenders. We offer loan solutions for business owners with less than perfect credit. Can I work with direct lenders online? Yes.
Dave Gilbert is the Founder and CEO of National Funding, a leading U.S. specialty finance company serving small- and medium-sized businesses. The company serves American small business owners by providing funding solutions to meet their needs to reinvest in their day-to-day operations and help them grow.
The email claims to be from a government agency or organization that offers financial assistance to those in need. The email says you have been approved for financial support and to call a phone number to finish enrolling in the program. However, it is all fake.
Good credit score = 680 – 739: Credit scores around 700 are considered the threshold to “good” credit. Lenders are comfortable with this FICO score range, and the decision to extend credit is much easier. Borrowers in this range will almost always be approved for a loan and will be offered lower interest rates.
A perfect score of 850 will give you bragging rights, but any score of 800 or up is considered exceptional and will usually give you access to the best rates on credit cards, auto loans, and any other loans.
The Federal Trade Commission (FTC) requires lenders and loan brokers to register in the states where they conduct business. Check the lender's website to verify the list of states where it legally conducts business. If a lender you're interested in does not list registered states, you could be dealing with a loan scam.
In most cases, a direct lender raises money from a network of investors and partners. After securing funding, the lender will approach a potential borrower and make a leveraged loan offer. If you're new to this term, a leveraged loan is simply a commercial loan funded by multiple investors.
National does not settle debt from lawsuits, IRS debt and back taxes, utility bills or federal student loans. It can't settle auto or home loans or other types of secured debts (debts with collateral).
A business line of credit is a revolving, flexible form of small business funding that only charges interest on the amount you use. While a term loan offers a lump sum upfront with a fixed repayment schedule, a business line of credit allows you to withdraw funds as needed.
National Small Payday Loans is offered by National Small Loan, a financial services company founded in and based in Lac du Flambeau, WI. National Small Payday Loans are available in 50 states (and Washington, DC).
National Funding offers both short-term working capital loans and equipment financing. Specifically, it offers working capital loans between $10,000 and $400,000 with terms of four months to two years, paid daily or weekly. Plus, business owners can apply for equipment financing up to $150,000.
Based on its more than $100M gross revenue for 2019, National Funding met the criteria for the large company category. It ranked #4 based on its 67 percent growth.
What is the easiest type of installment loan to get? In general, the easiest type of installment loan to get will be a short-term personal loan that doesn't require a credit check, such as a payday loan, pawn shop loan or car title loan.
Taxes are a major differentiating factor when it comes to deciding between a 401(k) loan and a hardship withdrawal. For hardship withdrawals, your money will be taxed penalty-free under ordinary income taxes. 401(k) loans avoid income taxes, as the money technically isn't income.
A hardship withdrawal isn't a loan and doesn't require you to pay back the amount you withdrew from your account. You'll pay income taxes when making a hardship withdrawal and potentially the 10% early withdrawal fee if you withdraw before age 59½.
Credit Rating: 550 is considered a bad credit score. Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan with no credit check, but the interest rate is likely to be high.
A 900 credit score may be the highest on some scoring models, but this number isn't always possible. Only 1% of the population can achieve a credit score of 850, so there's a certain point where trying to get the highest possible credit score isn't realistic at all.
It is 176 points away from being a “good” credit score, which many people use as a benchmark, and 116 points from being “fair.” A 524 credit score won't knock any lenders' socks off, but it shouldn't completely prevent you from being approved for a credit card or loan, either.
You will likely need a minimum credit score of 660 for a $50,000 personal loan. Most lenders that offer personal loans of $50,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.
For large loans around $100,000, you may come into more stringent lender requirements than with smaller loans. Your income, credit reports and score are major players in your eligibility — but exact stipulations vary by lender. Requirements for a $100,000 can include: Excellent credit, 670 or higher.
Your credit score helps lenders evaluate your creditworthiness or how likely you'll repay your debt. The higher your credit score is, the more likely you'll get approved for a personal loan.
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
Mortgage lenders usually verify your employment by contacting your employer directly and by reviewing recent income documentation. The borrower must sign a form authorizing an employer to release employment and income information to a prospective lender.
Yes. A mortgage lender will look at any depository accounts on your bank statements — including checking and savings accounts, as well as any open lines of credit. Why would an underwriter deny a loan? There are plenty of reasons underwriters might deny a home purchase loan.
Banks can call your employer to verify employment for personal loans. But most banks will simply verify your income through a tax document or bank statement when evaluating your application for a personal loan.
The main competitors of National HealthCare include uniQure (QURE), DocGo (DCGO), Innoviva (INVA), Kura Oncology (KURA), Exscientia (EXAI), Nevro (NVRO), ADMA Biologics (ADMA), MorphoSys (MOR), Avid Bioservices (CDMO), and Corindus Vascular Robotics (CVRS). These companies are all part of the "medical" sector.
Quick Capital Funding is located in Irvine, California, United States . Who are Quick Capital Funding 's competitors? Alternatives and possible competitors to Quick Capital Funding may include Direct Capital , Express Capital Financing , and Webster Five .
Who are Silver Hill Funding 's competitors? Alternatives and possible competitors to Silver Hill Funding may include Pacific Crest Federal Credit Union , Groupe Orbis , and Commercial Funding .
One of the biggest drawbacks of using direct lenders for short-term loans is that they often charge higher interest rates than traditional lenders. This is because short-term loans are considered to be high-risk loans, and direct lenders need to charge higher rates to offset that risk.
One of the major disadvantages of direct lending is that it tends to be difficult to move into other industries, even ones related to credit, such as distressed private equity, standard private equity, or credit hedge funds.
From the lender's point of view, secured debt can be better because it is less risky. From the borrower's point of view, secured debt carries the risk that they'll have to forfeit their collateral if they can't repay. On the plus side, though, it is likely to come with a lower interest rate than unsecured debt.
Credit cards are another example of a type of debt that generally doesn't have forgiveness options. Credit card debt forgiveness is unlikely as credit card issuers tend to expect you to repay the money you borrow, and if you don't repay that money, your debt can end up in collections.
The average interest rate for a line of credit generally ranges from 7-21%, depending on factors such as your credit score, income level, and other personal financial indicators.
700 or above: Credit scores of 700 or more will put just about any business loan option on the table. An excellent credit score (750 or higher) opens up business loan options like traditional bank loans, bank business lines of credit and SBA loans.
Most lenders have a minimum annual or monthly business revenue requirement. This varies depending on the specific lender but can range anywhere from $10,000 per month to $250,000 per year.
National Funding is an online lender that issues small-business loans to entrepreneurs in a variety of industries. The company offers short-term, working capital loans as well as equipment financing and leasing.
Borrowers can take out small personal loans with amounts as low as $1,000 - $3,500, depending on the lender. The biggest lenders on the market don't tend to offer less than that, and some will only lend a minimum of $5,000 (or even more). Amounts lower than $1,000 are more common with local banks and credit unions.
What Is a Small Loan? Nothing formally defines the amount of a small loan, but it's generally considered to be one that's $3,000 or less. Small loans tend to be personal loans used to cover emergencies, such as medical bills, fixing a vehicle, home repairs or covering necessary household expenses.
National does not settle debt from lawsuits, IRS debt and back taxes, utility bills or federal student loans. It can't settle auto or home loans or other types of secured debts (debts with collateral).
Government loans can help pay for education, housing, business, disaster relief, and more. Unlike grants and benefits, government loans must be repaid, often with interest.
Is the Lender Reputable? New American Funding has an A+ rating with the Better Business Bureau and has been BBB accredited since 2004. The lender has a Trustpilot score of 3.8 out of 5 stars, a great rating, based on about 40 reviews.
These loans range from $100 to $5000. They can be funded within a business day, making them a convenient option for those needing quick financial support. The loan agreement and repayment terms vary from lender to lender. Still, most payday lenders offer a maximum repayment period of two years.
Introduction: My name is Jonah Leffler, I am a determined, faithful, outstanding, inexpensive, cheerful, determined, smiling person who loves writing and wants to share my knowledge and understanding with you.
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