In The News


10 27 2015

10 27 2015

Online Lenders Provide Quick, Easy Access To Capital

Capital and credit markets aren’t what they used to be, and for many small and medium-sized businesses that’s turning out to be a good thing. To be sure, traditional sources of funding such as bank loans, lines of credit, and venture capital continue to dominate, but the emergence of alternative funding providers — especially tech-driven online lenders — is making it easier and faster for businesses to get the money they need, when they need it.

Over the past six to seven years the outstanding portfolio balance of online lenders has been growing at an annual rate of about 175 percent, compared to a decline of about 3 percent a year in the traditional banking sector, according to a Harvard Business School working paper. While still representing only a fraction of the funding provided to small businesses, alternative funders — often referred to as “FinTech” companies — are changing the way in which those businesses access capital, by providing greater competition, price transparency, and a better customer experience.

“There is a tremendous demand for capital among smaller businesses,” says Dave Gilbert, CEO of National Funding, which has been active in this space since 1999, “and something like 90 percent of small business bank loan applications are denied. FinTech companies provide access to the capital these companies need to run and grow their business, without having to go through the laborious process of a bank loan application.”

Evidence of that demand can be seen in the high number of FinTech companies jumping into the market and the meteoric growth of some established firms. For example, Quick Bridge Funding, which launched in 2011, is now ranked No. 5 on the 2015 Inc. 500 list. Supply and demand is a major factor behind that growth, but other trends are also fueling it, says Quick Bridge Funding president Ben Gold. The trust factor is increasing, as business owners become more open to securing financing online; TV shows like Shark Tank and Blue Collar Millionaire fuel the American dream of business ownership; and technology and the internet make it easier than ever to pursue that dream.

What makes it possible for companies like National Funding to deliver up to $500,000 in funding within 24 hours is their approach to analyzing data and, in National Funding’s case, the breadth of its product mix. “There are a lot of companies out there focusing on short-term lending now, but they don’t offer the product selection we do, especially equipment leasing,” Gilbert says. “That gives us flexibility to do the best job of matching the right funding vehicle with a specific business need.”

Alternative funding is particularly well suited to business needs of limited duration, since the loans or leases provided generally matched to the time frame of the business use. “It doesn’t make sense if you have a four-month project to take on a two-year loan commitment and pay interest on the money that you’re not actually putting to work,” Gold says. “In a perfect world, you match the length of the loan to the length of the project. When it’s over, it’s easy to calculate your ROI. That is what short-term lending is designed to do.”


Originally printed in Inc. Magazine

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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.


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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.


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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.


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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.