Finance & Lending


09 25 2014

09 25 2014

Alternative Lending Options Getting A Boost

Getting the right working capital can be one of the most important processes in the life of a small business. However, today’s business landscape is constantly changing, and these shifts are being felt in the small business lending market.

A recent report from Harvard Business School titled “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game” makes the case that the traditional pillars of small business lending are being overtaken by different options.

While choices like merchant cash advances and equipment leasing have always existed alongside bank credit, this part of the market has been small when compared to bank credit assets. However, the report highlights the considerable growth from these segments since the financial crisis.

“There are a broad range of alternative models emerging in commercial finance, particularly in the larger dollar small business loan segment, including receivables purchases and innovations in specialized lending by verticals,” the report stated. “Indeed, these nontraditional lending sources have proliferated through the recovery, further suggesting either that businesses are forced to seek nontraditional credit because banks remain unwilling to lend or that nontraditional lenders have found ways of providing capital to small firms with greater efficiency and convenience.”

Data from Harvard Business School showed that during the final quarter of 2013, bank loans experienced a 3.1 percent decrease year over year. Meanwhile, business credit cards saw an increase of 1 percent during the same time period, while equipment leasing got a boost of 2 percent. However, online alternatives to traditional banks saw a jump of 100 percent, showing just how strong the trend away from bank lending is becoming among small businesses.

“Despite their small scale, the technology used by these alternative players is fundamentally changing many of the ways in which small businesses access capital, creating efficiencies, greater competition, price transparency, and even making small business lending more profitable,” the report continued.

Providing small businesses with greater options

The increase in nontraditional lending channels is positive news for small business owners. Instead of being forced to contend with the obstacles presented by a traditional small business loan, owners can now turn to options like merchant cash advances.

This allows small businesses to receive the cash they need in as few as 24 hours without having to put up collateral. Along with no fixed payments, hidden fees or upfront costs, it’s clear to see why these and other options are only becoming more popular with business owners.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan.  What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number.  We will also ask for your name, address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.