National Funding Review 2026

National Funding's short-term working capital loans carry factor rates from 1.10 to 1.35, with terms from 4 to 24 months. Factor rates are not the same as APR. A factor rate of 1.225 on a $50,000 loan means you repay $61,250 total, regardless of how quickly you pay. When you convert that to an annualized rate on a 12-month term, the effective APR lands around 22% to 45% before the origination fee. On shorter 6-month terms, the true APR can exceed 50%.

Equipment financing starts at 4.99% simple interest (not a factor rate) with terms from 24 to 60 months and loan amounts up to $150,000. The equipment itself serves as collateral, and no down payment is required.

Both products carry origination fees of 1% to 3%, deducted from loan proceeds. National Funding does not charge prepayment penalties. Instead, it offers an early payoff discount: borrowers who pay their working capital loan in full within the first 100 days receive a 7% discount on the remaining balance. For context, an SBA 7(a) loan currently runs about Prime + 2.75% (~9% APR), making National Funding significantly more expensive for borrowers who could qualify for government-backed lending.

Minimum personal credit score: 600 (some sources cite 660 or 670 depending on product). Time in business: 6+ months. Minimum annual revenue: $250,000 for working capital loans. Equipment financing revenue requirements are variable and assessed on a case-by-case basis.

National Funding requires a personal guarantee on all loan types. This means if your business cannot repay, the lender can pursue your personal assets. No physical collateral is required for working capital loans, and the initial application uses only a soft credit pull, so applying does not affect your credit score. If National Funding refers you to a lending partner, that partner may perform a hard inquiry.

The application starts online and takes about five minutes. You enter basic contact and business information, then a funding specialist contacts you by phone to discuss your options. You will need to provide six months of business bank statements and potentially other documentation.

Once documents are reviewed, National Funding presents a loan offer with the factor rate, repayment schedule, and origination fee. If you accept, funds are deposited via ACH, often within 24 hours of approval. There is no self-service borrower portal. To check your balance or request payoff information, you must call customer service. One ConsumerAffairs reviewer reported borrowing $35,000 and being quoted a $44,000 payoff amount just one week later, which illustrates how factor rate pricing can surprise borrowers who did not fully understand the terms before signing.

Origination fee: 1% to 3% of the loan amount, deducted from proceeds before disbursement. On a $50,000 loan at 2%, that is $1,000 you never receive but still owe factor-rate charges on.

Factor rate charges: Built into the total repayment amount. A 1.225 factor rate on $50,000 equals $11,250 in financing costs.

Estimated Year 1 total cost: Approximately $12,250 for a $50,000, 12-month loan at the median factor rate with a 2% origination fee.

Prepayment discount: 7% off remaining balance if paid within the first 100 days.

No prepayment penalty. No annual renewal fees once the loan is repaid.

There is no standard rate card published on the website. You must complete the application and speak with a specialist to learn your specific rate, which makes it difficult to compare costs before committing time to the process.

Yes, and here is the evidence rather than the vibe. National Funding has operated from San Diego since 1999. It holds California Financing Law license 603A169. The company reports more than $4.5 billion funded across 75,000 plus businesses. The BBB rates it A plus. Forbes Advisor put it on the best small business loans list for 2025. We hold an active partner account with National Funding and have been through their onboarding ourselves. That relationship never changes our numbers, and this page shows the costs plainly.

The ratings split confuses people, so read it the right way. Trustpilot shows 4.6 stars from 2,170 reviews, mostly praise for named funding specialists and fast wires. Google sits at 4.5 from about 560. Yelp shows 1.9 from 48. The angry reviews are rarely from borrowers. They come from people buried in prequalified direct mail. Reddit threads mostly ask whether those mailed offers are real. They are real. They are also expensive money. That is the honest reason to pause, not legitimacy.

We could not locate a dedicated CFPB complaint record for National Funding in the Consumer Financial Protection Bureau's public database. This may be because the CFPB complaint database has historically focused on larger depository institutions and because the CFPB itself has faced significant operational disruptions since early 2026, including staff reductions and funding disputes.

On the BBB side, National Funding holds an A+ rating with 56 complaints on file. The majority of those complaints center on aggressive direct-mail marketing (the "Ignite" card campaign) and difficulty opting out of solicitations, not on loan servicing disputes. On Trustpilot, National Funding scores 4.6 out of 5 from 2,119 reviews, with most positive reviews praising individual funding specialists by name.

If your credit score is above 625 and you have 12+ months in business, OnDeck offers term loans with APRs starting around 29.9% and provides prepayment and loyalty discounts for repeat borrowers. OnDeck also publishes its rates more transparently.

For businesses that want revolving credit rather than a lump sum, Bluevine offers lines of credit with APRs from 20% to 50%. You only pay interest on what you draw, which can save money if you do not need the full amount at once.

Fundbox has lower revenue requirements than National Funding and may work for newer businesses that cannot meet the $250,000 annual threshold.

If you can wait 30 to 90 days for funding and have a credit score above 680, an SBA 7(a) loan through a community bank or CDFI will cost a fraction of what National Funding charges, with APRs near 9% and terms up to 10 years for working capital.