National Funding Reviews and Complaints: 7 Findings From the Record

National Funding is a legitimate direct lender that has been around since 1999. It gives loans from $5,000 to $500,000, and plenty of reviewers like how fast it can get them out. But the complaints pile up around the high rates, the daily repayments, and what some call too much marketing. It’s a fit for businesses that have six months in business and need fast cash, but can’t qualify for traditional bank loans. Below are seven findings from Better Business Bureau, Trustpilot and customer reviews.

1. The ratings disagree

The BBB rates the company A+, while the customer reviews averaged 1.65 out of 5 (March 2026). But Trustpilot scores 4.6 from 2,213 reviews. It has held BBB accreditation since February 2013. Reading actual reviews on both sites may reveal patterns in behavior by the company, which helps in making your decision.

2. The praise is about speed and people

The best reviews are about how easy the online application was and how quick the funding was: as little as 24 hours in some cases. Reviewers praise their loan specialist by name, praising how attentive and helpful they were, guiding them through the process.

To qualify, you need six months in business and $250,000 annual revenue with a business bank account. It accepts fair credit and weighs time in business and revenue more than score. There’s a soft check first, then a hard check before approval. Six months can open the door for startups who might not have the two years some lenders require. A call comes after you’re prequalified, to discuss your options, rates and what documents you need. The contract tells you the amount, rate and terms.

3. Cost is the steady complaint

The company does not show its rates upfront, and even satisfied customers complain of high rates. They vary by credit score. Origination fees run 1% to 3%. It charges late fees and NSF penalties, and some reviewers recommend established businesses with better credit consider less expensive options.

4. Daily payments squeeze cash flow

The short-term loans charge flat fees based on factor rate instead of interest rates. They are repaid by daily or weekly ACH debits. Daily payments are too tough for some owners. One product, XPRS, offers daily, weekly, or monthly.

Terms on short-term loans are 4 to 24 months. Equipment financing runs 2 to 5 years. Daily debit payments come out whether it’s a busy week or a slow week. If you don’t have a steady revenue stream, look out.

5. The marketing does not let up

National Funding’s Ignite campaign mails prequalification letters with mock credit cards. Its website looks broad, but the company really offers only two loan types, short-term loans and equipment financing. Mock cards can mislead owners into thinking it has cards or lines of credit. Recent BBB reviews (May 2026) say phone calls and mailings continued after asking removal. The site has encryption and firewalls to protect data, but the company shares customer information with third parties including marketing partners and lenders. You can opt out if you don’t want to receive unsolicited marketing.

6. Service can fade after funding

One reviewer said after getting the money, the customer service went south. A September 2026 review on Trustpilot said the lender had no online portal to check payments or balance. The company responded it is building one. After funding, without a portal to check debits and balance, you need your own record keeping to track progress.

7. Your own assets are on the line

You can get short-term loans without collateral. But you must guarantee them personally. So if your business defaults, the lender can go after your own assets to pay back the loan. There is no prepayment penalty, and there may be an early repayment discount, but it comes with some conditions. Before signing anything, read your agreement’s rate, terms, and payment schedule.

If you’re in California, note that since December 9, 2022, California requires written disclosures to California businesses with a specific financing offer. This does not apply to deals above $500,000. Use these disclosures to compare offers and decide which one to take.

In a June 2020 Ninth Circuit decision in National Funding v. Corporate Turnaround, the federal appeals court said that negotiating a payment schedule for a borrower does not by itself qualify as the practice of law. Only one of three claims was dismissed, and two others could be amended. So, if your payments become too much, and you want someone to help you talk to the lender, they may be able to do that.

The bottom line: it is legit, and praised for being fast and for its staff. But it is costly, its debits are frequent, and you must personally guarantee the loan. If cash is already tight, map the daily payment against your slowest month before you sign.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.