National Funding Achieves Landmark Milestone with Successful Securitization of $145 Million

National Funding Completes Third Securitization

On May 21, 2025, National Funding, Inc. announced a momentous achievement in the fintech sector with the successful completion of its third securitization transaction, named NFAS3 LLC Series 2025-1. This deal, valued at $145 million, showcases National Funding's dedication to supporting small and medium-sized enterprises across the United States by enhancing their access to essential capital resources.

The Series 2025-1 Notes have been divided into four different classes, recognized by Kroll Bond Rating Agency (KBRA) with ratings of AA- for Class A, A- for Class B, BBB- for Class C, and BB for Class D. This meticulous structuring highlights National Funding's robust approach to risk and financial management, as well as the trust that investors place in its offerings. Guggenheim Securities, LLC served as the sole structuring agent and book runner for this high-demand transaction, which was oversubscribed by 1.7 times and involved 13 distinct investors, including several who were part of National Funding's asset-backed securities (ABS) issuance program for the first time.

At the core of this successful issuance are the receivables backed by a diverse portfolio of loans mainly directed towards small and medium-sized businesses nationwide. The deal's flexible structure further includes an expandability option, enabling periodic increases of up to $500 million, thus ensuring that National Funding is well-prepared to continue meeting the evolving needs of its customer base.

David Gilbert, the CEO of National Funding, remarked, "Today's securitization exemplifies our dedication to financial innovation and our ongoing effort to enhance liquidity and funding options for small businesses across the country. This achievement not only affirms our financial strength but also reflects the confidence of the capital markets in our business model and risk management capabilities."

The funds raised through this transaction will be specifically directed towards retiring existing Series 2022-1 notes, financing new receivables, establishing a reserve account, and covering associated fees and expenses. Throughout the revolving period of this transaction, which will last until April 30, 2028, National Funding will persist in sourcing and transferring receivables, continuously reinforcing capital access for its clients.

To provide increased security for noteholders, this transaction incorporates several credit enhancements, including overcollateralization, subordination, excess spread, and a reserve account. These features bolster both investor confidence and operational stability.

For National Funding, this significant milestone is more than just a financial event; it represents an evolution in their mission to empower entrepreneurs and small business owners across the nation. By expertly balancing risk management, advanced technology solutions, and effective capital allocation, National Funding is positioned for sustained growth and operational success in the competitive fintech arena.

About National Funding

Founded in 1999, National Funding stands as a national leader in providing financing solutions tailored for small and medium-sized businesses. Utilizing proprietary risk assessment models alongside cutting-edge technology, the company is committed to delivering quick and adaptable capital solutions designed to help entrepreneurs and established businesses thrive in today's dynamic market. Their focused approach ensures continued innovation and sustained support for customers, further strengthening their market presence and relevance in an ever-changing financial landscape.