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 short-term cash access flow. Equipment financing allows companies to acquire machinery and technology with the equipment itself as collateral. A merchant cash advance provides business-funding profile details 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.
