National Business Capital Review: A Lending-Advisory Service For Small Businesses

Pros

• High borrowing amounts
• Long-term financing options available
• Customers have an assigned account manager

Cons

• Rates can be expensive
• May require collateral/blanket lien

What Is National Business Capital?

National Business Capital’s lending advisory service links small business applicants to one of its 75+ lending affiliates.

Services Offered By National Business Capital

National Business Capital offers a number of different forms of financing:

• Business Term Loans: Business Term Loans are traditional loans where you receive a lump sum from your lender and then pay off your principal plus interest over a set timeframe called your “term.”
• Business Lines Of Credit: Rather than giving you a lump sum, a line of credit establishes a credit limit, which represents the maximum amount of money you can borrow during a set draw period. You can usually draw upon your line of credit as often as you want so long as the total amount you’ve borrowed does not exceed your credit limit.
• Equipment Financing: Loans and leases specialized for helping businesses acquire tangible, productive assets. The equipment financed usually serves as collateral.
• SBA Loans: SBA loans are loans that the Small Business Administration partially guarantees. The guarantee allows you to receive better rates and terms than you’d otherwise qualify for.

National Business Capital’s network can accommodate just about any small business lending scenario you can think of. As it’s an advisory service, however, it doesn’t provide much in the way of its own infrastructure for servicing your debt. That will depend on the affiliate you’re paired with. National Business Capital gets a 3.5/5 for services.

Borrower Qualifications

These are the preferred prerequisites to qualify for funding through National Business Capital:

Businesses that don’t meet those benchmarks may still be able to qualify through the lender’s alternative programs.

National Business Capital can work with businesses in all 50 states, Canada, Puerto Rico, and the UK. Note that certain products, such as SBA loans, may have different borrower qualifications. Equipment financing is available to new businesses less than a year old if they have credit scores of 650 or higher.

Notably, National Business Capital does work with businesses in the cannabis industry so long as they’ve been in business for at least a year.

Overall, National Business Capital’s borrower requirements fall on the lenient side of average. While there are provisions for those who don’t meet the requirements, it’s best to assume you’ll stand a much better chance of qualifying if you meet them. We give National Business Capital a 4.3/5 for eligibility requirements.

Rates & Fees

National Business Capital’s rates and fees vary greatly depending on your borrower qualifications and the lender you are paired with. Overall, the term lengths offered here are pretty generous, and the rates, while they can get expensive, are competitive as fintech goes. We’d like to see more information about additional account fees, however. There’s not much information regarding prepayment penalties. As it likely varies by lender, make sure you inquire before you accept any offer.

We give National Business Capital a 4/5 for rates and fees.

Small Business Loans

Here are the terms for National Business Capital’s small business loans:

National Business Capital’s affiliates offer a broad range of term loans, from short-term to medium- and long-term loans. Term loans arrive in a single lump sum, frequently have origination fees, and are paid back at regular intervals (usually daily, weekly, or monthly).

National Business Capital’s affiliates offer both secured and unsecured loans, meaning they may or may not require collateral. Depending on the lender, you may have to sign a personal guarantee.

Business Line Of Credit

Here are the terms for National Business Capital’s business lines of credit:

Business lines of credit are more flexible than term loans. Think of them as similar to credit cards: You can draw from your line until you reach your credit limit. You only pay interest on the amount of credit you’ve used. As you pay down the principle, that credit becomes available again.

Companies tend to use business lines of credit either as insurance policies or to make periodic smaller purchases.

Make sure you get a comprehensive breakdown of the costs involved in maintaining a business line of credit, as some have access fees or annual maintenance fees.

Equipment Financing

Here are the terms for equipment financing through National Business Capital:

Equipment financing can take the form of an installment loan or a lease. Equipment loans are very similar to other types of installment loans, but they must be used specifically to buy a tangible, qualifying asset. In most cases, the asset will serve as security for the loan. The nice thing about this is it usually means lower rates and more favorable terms than an equivalent unsecured loan.

Leases are a bit more complex. They can be configured for ownership (capital leases) or renting (operating leases). Either way, you’ll make monthly payments for the duration of the lease. In the end, you’ll pay a residual fee ranging from $1 to the equipment’s fair market value if you want to keep it. If your lease allows you to return your equipment, you can do that instead.

SBA Loans Through National Business Capital

Here are the terms for SBA loans made through National Business Capital:

The Small Business Administration (SBA) doesn’t directly lend to businesses, but it does help qualifying businesses access better rates by guaranteeing a percentage of the loan. That means you’ll not only be working with National Business Capital and its affiliate but also the SBA.

Be aware that most SBA loans take a long time to close, so they may not be the best option if you need money in a hurry.

Application Process

You can begin the application process online. National Business Capital keeps most of the supplemental documentation you need to submit to a minimum. In addition to the application, you’ll need to provide the last three months of your business’s bank statements. The company does not require tax return information, but it can’t hurt to have it handy.

After that, your National Business Capital business financing advisor may suggest ways to tailor your application to make it more attractive to the company’s pool of lenders. You’ll then be matched with as many offers as you qualify for. You can select one with input from National Business Capital.

Note that National Business Credit will do a soft pull on your credit.

Time to funding varies by the type of product:

• Business Loans: One to three days
• Lines Of Credit: One to three days
• SBA Loans: 30-75 days
• Equipment Financing: Two to five days

Overall, National Business Capital’s application process is simple and relatively speedy, with decent times to disbursement. We rate it 4.5/5.

Sales & Advertising Transparency

National Business Credit provides a fair amount of information on its site, giving you a general sense of what to expect from each product, but you’ll have to click around the site and its FAQs to find what you’re looking for. I’d have liked to have seen more information about fees and payments on the site, but since your application is being shopped around amongst affiliates, these may vary greatly. The company maintains an active social media presence.

We give National Business Capital a 4.4/5 for transparency.

Customer Service & Technical Support

National Business Capital’s customer service appears to be responsive and relatively knowledgeable. If you cannot get a representative immediately, one will generally get back to you in a reasonable amount of time. The company also provides a decent amount of self-service resources, including a blog and free eBooks.

We give National Business Capital a 4.4/5 for customer support.

National Business Capital User Reviews

National Business Capital’s user review footprint isn’t huge, but what’s out there is generally very positive, working out to a 4.8/5 rating in this category.

Negative Reviews & Complaints

National Business Capital has maintained an A+ rating with the Better Business Bureau with zero complaints logged. There are currently no reviews on the watchdog site.

Some potential issues include:

• Communication: Many customer complaints revolve around confusion over policies or promises they believe salespeople made.
• High Rates: Some customers found National Business Capital’s rates to be high, a not-uncommon criticism of alternative lenders.
• Aggressive Marketing: Some customers complained about receiving frequent cold calls.

Positive Reviews & Testimonials

National Business Capital rates a 5 out of 5 Trustscore on Trustpilot, with 97% of the reviews ranging from “good” to “excellent.” This in itself is slightly suspicious, but 2,500 would be a lot of fake reviews. Customers liked the following:

• The Options: National Business Capital offers many different products through its affiliates.
• Customer Service: Most customers speak well about the help they received from National Business Capital’s staff.
• Quick Turnaround: While not the fastest in the business, the speed of National Business Capital’s service was appreciated by many customers.

Is National Business Capital Right For Your Small Business Lending Needs?

National Business Capital is a comprehensive service willing to work with both young businesses and those with poor credit. And if National Business Capital isn’t the right fit for your business, check out our list of the best startup business loans for bad credit to find plenty of other options. Just make sure to compare any offers you get to other options, as the range of rates you can end up with through National Business Capital varies greatly. Overall, we give National Business Capital a Merchant Maverick rating of 4.2 out of 5.

Need alternatives? We can get you started with our list of best business loans.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

The Merchant Maverick Seal of Approval 🏆

National Business Capital	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see National Business Capital for yourself.

The Merchant Maverick Seal of Approval 🏆

National Business Capital	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see National Business Capital for yourself.