National Funding Business Loans Online Lender

National Funding Business Loans Online Lender

National Funding, a San-Diego based finance lending company since 1999 and has been lending loans for small business. National Funding is a privately owned business loan providers which have originated over $1.5 billion in loans and have been lending loans to business all over the US. The National Funding business loans online lender provides business loans, MCAs, and finance for equipments for a short term.

After their introduction of the Merchant Cash Advance, the company started its main focus to business loans. The business loans provided by Nation Funding gives it’s borrowers a faster funding and looser qualifications than other traditional financial institution. National Funding business loans online vendor requires its borrowers a daily repayment and carries high costs with similar characteristics to MCAs. Below are a comparison between National Funding and other Small-business loans. 

National Funding Vs. Others

As a uniqueness, National Funding provides loans in a fast pace time. Borrowers can get their loan in just 24 hours, with a funding time of 48 hours. This lender has an option for short-term cash needs. Of course, if your profit exceeds the total loan amount. 

Considerably, loans from National Funding are expensive than what the bank offers. Wherein a traditional loan lender has a longer repayment term with an annual rate of interest of less than 10%. National Funding helps you to build your business credit while repaying the loans as this lender reports your repayment history to Paynet, business credit bureau. With an option for foreclosure, borrowers can save a partial amount on the annual rate of interest. 

The short-term loans from National Funding can be of 6 months to 15 months according to the repayment duration. Since it has a short repayment system, National Funding provides high borrowing cost. As mentioned, the rate of interest is higher than bank loans and slightly higher than other loan providers, whose annual rate of interest would be 8% to 99%. 

National Funding has a borrowing cost which ranges from 15% to 30% of the total principal amount, the average borrowing cost would be around 26%. This also includes a 1% origination fee.

For better understanding, let’s consider the example, a $100,000 loan costs $26,000 on an average for borrowers. If the loan is repaid in over seven-month term on a daily basis, you would be paying $600 daily. Then the annual percentage rate of the loan would exceed 80%. 

The frequency of repayment terms on the business loans and merchant cash advance can cause serious cash-flow issues and would not be the perfect fit for business with uneven cash flow.