National Funding Review 2026 — Equipment Financing & Working Capital Loans
Last reviewed: May 2026 — Rates and terms verified via National Funding’s published product pages and Nav.com lender database. FundingCompass has no current affiliate arrangement with National Funding. This review reflects our independent assessment.
- Best for businesses with 2+ years in operation, 600+ credit, and $250,000+/year revenue that need equipment financing up to $150,000 across a wide range of categories.
- Equipment financing effective APRs run approximately 15–35% for qualified borrowers; working capital loans use factor rates of approximately 1.10–1.45 (not disclosed upfront).
- Finances a broad range of equipment types — vehicles, construction, restaurant, medical, technology — with a 600 credit score minimum accessible to businesses that don't meet bank lending standards.
- The $150,000 equipment financing cap is below Balboa Capital and Crest Capital (both $500,000); costs are not published upfront and require an application to see.
Key Terms
APR (Annual Percentage Rate)
National Funding does not publish APRs for its equipment financing. Based on reported borrower experiences and comparable products, effective APRs range approximately 15–35% for equipment loans to qualified borrowers, as of May 2026.
Equipment Loan
An equipment loan from National Funding is secured by the equipment itself, typically runs 24–60 months, and results in ownership at payoff. Because equipment serves as collateral, credit requirements are lower than for unsecured financing.
Operating Lease
National Funding’s equipment lease options let you return or buy out the equipment at end of term. Off-balance-sheet treatment may be available depending on lease structure and your accounting method — confirm with your accountant.
Section 179
Equipment purchased or financed through National Funding may qualify for the IRS Section 179 deduction, allowing the full purchase price to be deducted in the year of purchase rather than depreciated over time. The 2026 deduction limit is $1,160,000. Consult a tax adviser before making purchasing decisions based on this benefit.
Summary Verdict
National Funding is one of the larger online alternative lenders focused on equipment financing and working capital loans for small businesses. It operates across the US, offers a fast application process, and has relatively accessible credit requirements for equipment financing (600+ credit). Its working capital loans function similarly to merchant cash advances — the total cost is fixed as a factor, not an APR — which makes cost comparison more complex. For equipment financing specifically, National Funding is a legitimate option for businesses that don’t qualify for bank or Small Business Administration (SBA) equipment loans.
Best for: Businesses needing equipment financing ($5,000–$150,000) with 600+ credit and 2+ years in business. Also worth considering for working capital loans if merchant cash advance (MCA) alternatives have been ruled out.
Not ideal for: Businesses seeking the lowest cost equipment financing (bank and SBA options are cheaper for qualified borrowers), or those who need more than $150,000 in equipment financing.
At a Glance
| Product | Funding Range | Min. Credit Score | Min. Time in Business | Min. Annual Revenue | Speed |
|---|---|---|---|---|---|
| Equipment Financing | $5,000–$150,000 | 600 | 2 years | $250,000 | 24–48 hours |
| Working Capital Loan | $5,000–$500,000 | 600 | 6 months | $100,000 | 24–48 hours |
Rates: Equipment financing at factor rates (not APR) disclosed at application. Working capital loans at factor rates of approximately 1.10–1.45. Rates verified May 2026.
Strengths
- Finances a wide range of equipment categories — vehicles, construction, restaurant, medical, technology — with 600 credit score minimum, accessible for businesses that don't meet bank lending standards
- Section 179 tax deduction promotion is relevant for equipment buyers: financing through National Funding may let you deduct the full equipment cost in the year of purchase (2026 limit: $1,160,000)
- Working capital loans available to businesses as young as 6 months with $100,000+/year revenue; funds in 24–48 hours for qualified applicants
Limitations
- Does not publish specific cost ranges upfront — you must apply to see your rate; working capital loans use factor rates (not APR), making cost comparison with other lenders more complex
- 2-year minimum for equipment financing excludes newer businesses; $150,000 equipment financing cap is below Balboa Capital ($500,000) and Crest Capital ($500,000)
- Some customer reviews cite aggressive renewal offers and rollovers that increase total cost — confirm full repayment terms before signing any renewal
What National Funding Offers
National Funding provides two core products: equipment lending (through lease and loan structures) and working capital loans (structured similarly to MCAs with fixed total repayment).
Equipment Financing: National Funding offers equipment loans and leases for a wide range of business equipment — vehicles, construction machinery, restaurant equipment, medical equipment, office technology. The application is online and fast; approval often comes within hours. Equipment serves as collateral for the financing, which enables lower credit requirements than unsecured lending.
Working Capital Loans: Despite the name, National Funding’s working capital loans function like short-term fixed-cost financing — you borrow a fixed amount and repay a fixed total over a set period via daily or weekly ACH. The effective cost varies with term length and your credit profile. These are not revolving lines of credit.
National Funding's equipment financing covers $5,000–$150,000 at effective APRs of approximately 15–35% for qualified borrowers — accessible to businesses with 600+ credit and 2+ years in operation across vehicle, construction, restaurant, medical, and technology equipment categories.
FundingCompass research, May 2026
Equipment Financing — Full Details
National Funding finances most types of business equipment without requiring perfect credit. Key characteristics:
What they finance: Vehicles (commercial trucks, vans, forklifts), construction equipment (excavators, compactors, lifts), restaurant equipment (ovens, refrigeration, POS systems), medical equipment, technology and software, office furniture and fixtures.
Lease vs. loan options:
- Equipment loan: You own the equipment at the end of the term. Typical terms 24–60 months.
- Equipment lease (operating): You return or buy out the equipment at lease end. Off-balance-sheet in some accounting treatments.
- $1 buyout lease: Structured as a loan for accounting purposes; $1 purchase at end.
Section 179 tax benefit: Equipment purchased or financed through National Funding may qualify for the IRS Section 179 deduction — allowing businesses to deduct the full purchase price in the year of purchase rather than depreciating over time. National Funding promotes this actively. Consult a tax adviser about your specific situation.
Cost structure: National Funding does not publish specific APR ranges for equipment financing — costs are factor-based and disclosed at application. Based on reported borrower experiences and comparable products, effective APRs for qualified borrowers range approximately 15–35% for equipment loans. The total cost is significantly cheaper than working capital loans.
Working Capital Loan — Full Cost Breakdown
National Funding’s working capital loans are priced using a factor rate, not an APR. This is important for cost comparison.
Example: $75,000 working capital loan at 1.20 factor rate, 12-month term
- Total repayment: $75,000 × 1.20 = $90,000
- Total cost: $15,000
- Daily ACH: $90,000 ÷ 252 business days = $357/day
- Effective APR: approximately 36%
Example: $75,000 at 1.35 factor rate, 8-month term
- Total repayment: $75,000 × 1.35 = $101,250
- Total cost: $26,250
- Daily ACH: $101,250 ÷ 168 business days = $602/day
- Effective APR: approximately 70%
Higher factor rates and shorter terms produce materially higher effective APRs. Request the factor rate and repayment schedule in writing before accepting any offer.
Who Qualifies
Equipment Financing:
- Personal credit score: 600+
- Time in business: 2+ years
- Annual revenue: $250,000+
- Equipment serves as collateral
Working Capital Loan:
- Personal credit score: 600+
- Time in business: 6+ months
- Annual revenue: $100,000+ ($8,333+/month)
- Business bank account required
National Funding does not serve: Start-ups under 6 months (working capital) or under 2 years (equipment). Businesses with open bankruptcies or recent charge-offs may be declined.
Pros and Cons
Pros:
- Finances a wide range of equipment types without perfect credit
- 600 credit score minimum is accessible
- Fast funding: 24–48 hours for qualified applicants
- Section 179 promotion is relevant for equipment buyers
- Working capital loans available to businesses as young as 6 months
- Operates in all 50 US states
Cons:
- Does not publish specific cost ranges upfront — you must apply to see your rate
- Working capital loans use factor rates, making cost comparison difficult
- 2-year minimum for equipment financing excludes newer businesses
- $150,000 equipment financing cap is lower than bank and SBA options
- Some customer reviews cite aggressive renewal offers and rollovers that increase total cost
National Funding vs. Competitors
For equipment financing specifically:
| National Funding | Crestmont Capital | Balboa Capital | Bank/SBA | |
|---|---|---|---|---|
| Equipment max | $150,000 | $500,000 | $500,000 | $5M+ |
| Min. credit score | 600 | 550 | 600 | 680+ |
| Min. time in business | 2 years | 1 year | 1 year | 2 years |
| Funding speed | 24–48 hours | 24–48 hours | 24 hours | 30–60 days |
| Cost | Factor-based (~15–35% eff. APR) | Factor-based | Factor-based | ~8–15% APR |
National Funding’s 2-year minimum is higher than many alternative equipment finance companies. If your business is 12–24 months old, Crestmont Capital or Balboa Capital may be more accessible. If you have 2+ years and 680+ credit, bank or SBA equipment financing is significantly cheaper.
Alternatives Worth Evaluating First
For equipment financing:
- SBA 504 loan: Fixed-rate equipment financing at 5.5–7% APR for amounts up to $5.5M, with 10% down payment. Best for large equipment purchases if you can wait 45–90 days. See Equipment Financing guide.
- Bank equipment loan: 8–15% APR for qualified borrowers (680+ credit, 2+ years in business, strong cash flow). Same structure, dramatically lower cost than National Funding for qualifying businesses.
- Equipment manufacturer financing: Some equipment manufacturers offer direct financing programs at below-market rates (sometimes 0% promotional periods) — check before seeking third-party financing.
For operating capital:
- Business line of credit: BlueVine and Fundbox offer LOCs at 15–30% APR with 600+ credit and 6+ months in business. See Business Line of Credit guide.
Application Process
Apply directly at NationalFunding.com.
Frequently Asked Questions
Does National Funding charge a prepayment penalty?
National Funding's working capital loans typically do not have prepayment penalties in the traditional sense — but the total repayment amount is fixed. "Paying early" eliminates future daily debits but does not reduce the total owed. Ask specifically whether early payoff reduces your total cost before assuming it does.
What industries does National Funding serve?
National Funding works with most industries, including construction, trucking, restaurants, retail, healthcare, and professional services. Cannabis businesses are not eligible. Verify your specific industry at application.
Is National Funding a direct lender or a broker?
National Funding is primarily a direct lender — it funds loans from its own capital rather than brokering to third parties. This generally means fewer fees than broker arrangements, but it also means you're only seeing one lender's offer. Applying to multiple lenders (Crestmont, Balboa, a local bank) before committing gives you comparison points.
Can I get equipment financing and a working capital loan simultaneously?
Yes. National Funding can approve both products simultaneously if you qualify for each independently. Running both increases your total daily ACH obligations — ensure your cash flow can accommodate both payments before accepting.
How does the Section 179 deduction work with National Funding equipment financing?
Section 179 allows businesses to deduct the full cost of qualifying equipment in the year it's placed in service, rather than depreciating over multiple years. Equipment financed through National Funding (loans and $1 buyout leases) typically qualifies. The 2026 Section 179 deduction limit is $1,160,000 (verify current limits at irs.gov). Consult a tax professional before making equipment purchase decisions based on Section 179 benefits.