At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About National Funding
National Funding is one of the few MCA providers that explicitly targets businesses in the 6-to-24-month operating range — the segment that banks universally decline and that even most alternative lenders consider too risky. Their underwriting model accepts this higher risk by pricing it in: factor rates for businesses under 12 months old typically land in the 1.30-1.50 range, while businesses with 2+ years of clean history may see rates as low as 1.10-1.15. This makes them expensive for established businesses (who should shop OnDeck or Fora Financial first) but valuable for newer operators who have no other responsible options. National Funding's biggest structural advantage over other startup-friendly funders is their early payoff discount program. Most MCA providers require the full purchased amount regardless of when you pay — if you borrowed $50K at a 1.30 factor rate, you owe $65,000 whether you pay it back in 3 months or 12 months. National Funding offers graduated discounts for early payoff, meaning a business that performs better than expected can reduce its total cost of capital meaningfully. This is a significant structural advantage that partially offsets their higher starting factor rates, and it is uncommon in the MCA space. Their in-house funding team (not outsourced) makes all underwriting decisions, which leads to faster processing and more consistent deal structures. National Funding is the right choice for businesses that are 6-24 months old, doing at least $250K in annual revenue (roughly $21K/month), and need $5K-$500K in working capital or equipment financing. If you are well-established with strong credit, you are overpaying here. If you are pre-revenue or under $20K/month in deposits, you will not qualify. Their equipment financing arm is also worth examining separately — it offers structured payments over 2-5 years at rates that are often cheaper than their MCA product for asset-backed purchases.
Key Features
Startup-Friendly Approvals
National Funding accepts businesses with just 6 months of operating history, making it one of the most accessible funders for newer businesses and entrepreneurs.
Early Payoff Discounts
Unlike many MCA providers, National Funding offers early payoff discounts that can significantly reduce your total cost of capital if business performs well.
Equipment Financing Options
Beyond cash advances, National Funding offers dedicated equipment financing programs that allow businesses to acquire needed assets without large upfront payments.
In-House Funding Team
All funding decisions are made by their in-house team, not outsourced to third parties, ensuring consistent standards and faster processing.
How It Works
Apply Online
Fill out the simple online application in under 10 minutes. No hard credit pull during the initial inquiry.
Speak with a Specialist
A funding specialist reviews your application and walks through the options that actually fit your situation.
Review Offer
Receive a detailed funding offer including factor rate, total repayment amount, and daily or weekly payment schedule.
Get Funded
Accept electronically and receive funds as fast as the same business day, deposited directly to your business account.
What They Do
- Merchant Cash Advance
- Working Capital Loans
- Equipment Financing
- Small Business Loans
Debt Types They Take On
- Merchant Cash Advance
- Short-Term Loan
- Revenue-Based Financing
- Equipment Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Food Truck Launch Capital — $25K Advance
A first-time food truck owner in Austin, TX with 7 months of operation and a 540 FICO needed \$25,000 for a mobile POS system, cooking equipment upgrades, and initial inventory for a new weekend catering service. The owner had been declined by OnDeck (insufficient operating history) and a local credit union.
Salon Startup Buildout — $80K Advance
A hair salon that had been open for 9 months in Phoenix, AZ needed \$80,000 to finish a buildout of 4 additional styling stations and hire two senior stylists. Monthly revenue was \$28K and growing 12% month-over-month, but the short operating history made bank financing impossible.
Pros & Cons
Pros
- Accepts businesses with just 6 months of operating history — one of the few reputable funders serving the startup segment that banks universally decline
- Early payoff discount program is valuable: it can reduce total cost by 10-25% for businesses that outperform expectations, partially offsetting the higher starting factor rates
- Equipment financing arm offers 2-5 year terms at rates lower than their MCA product, making it a better option for asset-backed purchases
- In-house underwriting team (not outsourced) produces faster, more consistent decisions — most applicants hear back within 4-6 hours on business days
- No hard credit pull during the initial pre-qualification inquiry, so shopping here does not damage your credit score
Cons
- Factor rates of 1.30-1.50 for businesses under 12 months old are 15-35 basis points above what established businesses pay at OnDeck or Fora Financial
- Multiple customer complaints about high-frequency follow-up calls from sales specialists — if you prefer a low-touch process, set expectations upfront
- Minimum \$250K annual revenue (\$21K/month) still excludes many early-stage businesses that are below that threshold in their first year
- The early payoff discount, while valuable, varies by contract — some deals discount the remaining factor, while others discount a fixed percentage, so read the specific terms carefully before signing
User Reviews (26)
ok overall
National Funding was fine. Not amazing not terrible. $200K at 1.15. Wish the rate was lower.
good enough
good
decent experience
Second time using National Funding. Rate improved from last time. $120K at 1.17. Not cheap but faster than a bank.
its ok
Factor rate 1.24 could've been lower for my revenue but whatever. Got the money I needed.
frustrating
National Funding was pushy from the start. Rep kept calling trying to get me to take more. I took $15K at 1.21. Already regretting it.
criminal
Predatory. National Funding charged me 1.42 on $120K which converts to criminal APR. When business slowed down they threatened legal action within 48 hrs. Sharks.
nope
Daily debits from National Funding are killing my cash flow. Took $30K for my pizza shop and now I'm struggling more than before.
DO NOT USE
too expensive
pretty good
If you need money fast they deliver. $50K at 1.20. Just know the rate is what it is.
nothing special
Not bad not good. $40K for buildout. It is what it is I guess.
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Related Companies
Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.