Press Release


08 28 2014

08 28 2014

National Funding Releases Study by Northwestern University’s Kellogg School of Management; Finds Human Element Still Key to Small Business Lending Process

National Funding, one of the country’s largest private lenders of small business loans, today released the findings and analysis of a new study on the lending habits of small business owners, which found that the attitudes surrounding small business lending vary by age of the small business owner and that a human element is very important in the decision-making process.

According to the study commissioned through Northwestern University’s Kellogg School of Management’s Experiential Learning Initiative, although using an online process for researching and initiating the application is accepted by all ages, the concept of an end-to-end online process is only well received by younger business owners. Additionally, while many business owners research lending providers online, 44% of all loan applications were completed in-person, making the human element even more relevant.

Since 1999, National Funding ( has been a leading provider of financial services and products for small businesses, including, working capital loans, merchant cash advances, credit card processing, and equipment leases. The company commissioned the survey to better understand the attitudes of today’s small business customer and to gain expert insight into the changing industry landscape.

“Despite great interest in strictly online alternative lending, many business owners still desire personal interactions with financial providers that will take the time to discuss business challenges and solutions,” said David Gilbert, CEO of National Funding. “At National Funding, our team is specifically committed to spending time with customers so they feel comfortable with the process, and fully understand our product offerings and their options.”

While many alternative lenders focus strictly on online marketing methods to reach new customers, the report’s analysis shows that:

  • Most owners show a strong preference for a personal interaction;
  • User-friendly web sites aid conversion, but don’t influence lender choice; and
  • Small business owners are more likely to use the first lender they meet.

“The alternative lending space has evolved greatly over the last five years, but small businesses face new challenges as restrictions have increased on traditional loans,” said Gilbert. “SME businesses still need financing such as working capital loans and equipment financing, and they need it more than ever as the business outlook improves. But at the same time, it was reported last quarter1 that nearly half of small businesses that sought financing could not obtain a loan from a traditional bank. We meet these business owners’ needs when others cannot, and we do it quickly, efficiently and at a cost that meets their budgets.”

Northwestern University’s Kellogg School of Management’s Experiential Learning Initiative provides students with the opportunity to conduct a study through an integrated strategy that includes strict adherence to rigorous research theories and a platform to provide analysis on real business issues. Working closely with companies, faculty and project coaches, students provide data driven, actionable recommendations on specific business issues. To learn more about the Kellogg School of Management at Northwestern University, visit

Kellogg screened and surveyed 235 small business owners between the ages of 21-65 years old that have owned or managed a business with revenue of $150,000 – $1 million per year for more than two years.

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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, text-messages, 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, text-messages, 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.


Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

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.