Press Release


05 23 2014

05 23 2014

National Funding Releases “Where to Go for Financing When the Bank Says ‘No’” White Paper

National Funding, a small business financial services company and alternative lender, today released its white paper titled “Where to Go for Financing When the Bank Says ‘No’.” With traditional bank financing no longer a viable option for many business owners, this whitepaper covers five financing avenues. The following funding sources are discussed: Small Business Administration (SBA), family and friends, home equity, credit cards, investors and alternative lenders.

The latest National Funding white paper addresses the subject of where a small business owner can go to secure funding to cover startup costs and/or funds needed to help them run and grow their established business. A recent study by the Federal Reserve Bank of New York found 90 percent of small businesses have had a loan request rejected by their bank in the past year.

In this white paper, owners find a brief summary for loan procurement options other than their bank.

    • U.S. Small Business Administration (SBA)

Typically the application process for procuring a loan through the SBA process requires an application, business plan, financial statements, credit check – along with resumes, business licenses, and other owner personal information. The entire process takes a minimum of 60 to 90 days to process the loan application.

    • Family and Friends

Seeking loans from friends and family may spell tax trouble for small-business owners. The IRS mandates that loans from loved ones must still carry interest rates. In addition, the axiom “never mix business with pleasure” often proves itself true. Family and friends want to help owners in need, but sometimes, these partnerships end in grudges and family conflict.

    • Home Equity Loans

A home equity loan is a loan that enables a small-business owner to secure funding by putting his or her home’s equity up as collateral.. The loans typically feature variable interest rates – possibly leading to payment increases and refinancing difficulties.

    • Credit Cards

Credit card cash advances may be risky and expensive. The loan agreements are not transparent and owners can find themselves with loans that are vulnerable to swings in the market with high interest rates.

    • Investors

In the case of both venture capitalists and angel investors, owners have to ask themselves whether the needed money is worth ceding aspects of ownership and management to outside investors.

    • Alternative Lenders

Alternative lenders provide flexibility and an easy loan approval process. They require less documentation and have less stringent credit standards –accommodating small-business owners who need to get a loan quickly. Simpler policies mean working capital loans can be processed in a week’s time, or even less. The process can often be handled online versus having to meet with a loan officer.

“Our new white paper is meant to serve as a resource to help small business owners evaluate financing options. Big banks have closed their pocketbooks to small-business owners, and we’ve seen how other financing options, like credit cards and home equity loans present a range of other issues,” said National Funding CEO David Gilbert. “Because traditional lenders aren’t lending, we’ve picked up the slack and what was once thought of as alternative is now becoming the new normal.”

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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.