National Funding Equipment Financing Review
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- Date Established
- San Diego, CA
- Moderate interest rates
- Relaxed credit score qualifications
- Opaque terms and fees
National Funding is a California-based company that provides alternative funding to small businesses, particularly those with poor credit.
Though the funder provides short-term loans and merchant cash advances as well, this review will focus on their equipment financing products.
National Funding’s equipment financing arm is a bit more conservative than its working capital division. Businesses seeking capital leases to finance their equipment will find decent rates, but they’ll also need a decent credit history to qualify. If you need a type of lease or loan not offered by National Funding, or you just want to look at alternatives, take a look at our equipment financers guide.
Table of Contents
National Funding provides the following types of business funding:
This review focuses on the equipment financing aspect of National Funding. For information about its other products, check out our review of National Funding’s lending products.
Types of Equipment Covered
To qualify for equipment financing from National Funding, you must meet these prerequisites:
|Time In Business:||six months|
You’ll also need to provide a price quote from the vendor you’re planning to purchase your equipment from.
Terms & Fees
National Funding’s website is fairly lean on details. You can expect their equipment financing offers to look something like this:
|Lease Amount:||$15K – $150K|
|Term Length:||three to five years|
|Interest Rate:||8% – 19%|
|Buyout Agreement:||Capital leases|
As is the case with their working capital division, National Funding can be a little bit vague about the details of its financial products. National Funding isn’t very specific about the types of leases they offer, but these generally fall under the umbrella of capital leases. That means that you’ll assume the rights and responsibilities of ownership of the equipment. Essentially, it’s a lease that serves an alternative to an equipment loan rather than, say, a rental agreement.
Typical capital leases include $1 buyout leases and 10% leases, meaning that most of the cost of the equipment will be spread out over the length of your lease. At the end of the term, you’ll pay a (usually small) residual fee to formally purchase the equipment. National Funding claims that they offer flexibility in terms of lease arrangments, so you’ll likely have some input into how much you want to pay per month. Paying less per month means a higher residual payment at the end of the term. National Funding offers deferred payment options for certain industries.
Similar to other alternative funders who also deal in equipment financing, you’ll find that National Funding’s equipment financing rates are significantly better than those of its short-term funding products. This is usually due to two factors: higher credit requirements and the equipment serving as collateral.
Note that National Funding does offer a Guaranteed Lowest Payment, promising the lowest lease payment available (within reason) or they’ll pay you $1,000 cash. You can read more about it on the company’s website.
You can start the application process online. You’ll need to get an equipment quote from the vendor, which you’ll pass on to National Funding. New and pre-owned equipment qualifies.
Luckily, National Funding approaches their equipment financing application process in the same way that they do with their other products. You’ll only have to fill out a one-page application, which covers basic information about yourself and your business. The approval process should be quick and easy.
Sales & Advertising Transparency
National Funding’s sales and web presence are par-for-the-course for non-traditional lenders. You’ll find some general information about the products National Funding offers, but it’s not particularly useful for comparison shopping.
Unfortunately, you probably won’t be able to get much precise information directly from National Fundings’s personnel either. You won’t know specific rates until you apply and get a quote from National Funding.
Customer Service & Technical Support
Reaching National Funding’s sales staff is easy and painless. But as I mentioned above, I didn’t find my discussions with staff to be very informative so far as gathering information goes.
The majority of user reviews that address customer service are positive, however, so it’s possible you’ll have a better experience when you’re a paying customer.
As is often the case when it comes to lenders, National Funding’s user reviews are highly polarized, with customers coming away with strong positive or negative assessments of the company.
National Funding maintains an A+ rating with the BBB, indicating that they do tend to respond to complaints in a timely manner. Their average review rating, however, is a 2.5 out of 5.
Negative Reviews & Complaints
Complaints about National Funding tend to fall into the following categories:
- Qualifying Can Be Difficult: Some customers complained that they received preapproval notices from National Funding but ended up not being qualified after going through the application process.
- Expensive: While National Funding’s business practices are well in line with the MCA industry in general, customers who don’t have much experience with them were shocked by the fees.
- Aggressive Sales Tactics: Several complaints involve unsolicited marketing calls and unsecured mailers from the company.
Positive Reviews & Testimonials
Customers who praised National Funding liked the following aspects of the lender:
- Poor Credit Okay: The credit prerequisites for MCAs are low, making it easy to qualify.
- Quick & Easy: Compared to traditional lenders, the application and approval processes are really easy.
- Easy Renewals: If you’re making your payments, you can easily get more funding from National Funding.
National Funding’s equipment financing product is a bit more conservative than its loans and MCAs, with higher lending standards but, overall, better rates. Businesses looking to finance their equipment will find National Funding to be quick and reasonable but limited in terms of the lease arrangements that they offer; there are no operating leases here. If you choose to finance your equipment through National Funding, be sure to take them up on their Guaranteed Lowest Payment to ensure you get the best deal you can.Back to top