National Funding, Inc., a prominent provider of commercial financing solutions for small- and medium-sized businesses in the United States, has announced the successful completion of its third securitization transaction, NFAS3 LLC Series 2025-1. This transaction underscores the company's commitment to expanding access to capital for small businesses nationwide and solidifies its position in the fintech-driven financial ecosystem.

The Series 2025-1 Notes, totaling $145 million, are structured into four classes with ratings provided by Kroll Bond Rating Agency (KBRA): AA- for Class A, A- for Class B, BBB- for Class C, and BB for Class D. Guggenheim Securities, LLC served as the sole structuring agent and book runner for National Funding in this transaction, which was oversubscribed by 1.7x and involved 13 unique investors, including several first-time investors in National Funding's ABS issuance program.

The Series 2025-1 Notes are secured by a revolving portfolio of receivables, primarily consisting of SMB loans issued to a diversified portfolio of small- and medium-sized enterprises across the nation. The transaction's flexible structure includes an expandable feature, allowing for periodic upsizes of up to $500 million, subject to certain conditions, demonstrating the company's strategic approach to scalable growth.

David Gilbert, CEO of National Funding, stated that the securitization exemplifies the company's dedication to financial innovation and its ongoing effort to enhance liquidity and funding options for small businesses. He added that the achievement affirms the company's financial strength and reflects the confidence of the capital markets in its business model and risk management capabilities.

The proceeds from this transaction will be used to retire the company's Series 2022-1 notes, finance receivables, establish a reserve account, and cover related fees and expenses. During the revolving period, which extends to April 30, 2028, the company will continue to originate and transfer receivables, fostering continuous access to capital for its customers. The structure includes credit enhancements such as overcollateralization, subordination, excess spread, and a reserve account, providing additional security for noteholders.

This transaction marks a significant milestone for National Funding, advancing its mission to empower small business owners and entrepreneurs nationwide. With sound risk management, innovative technology, proven customer acquisition, and strategic capital management, the company is well-positioned for continued expansion and operational excellence.

Founded in 1999, National Funding is a national leader in small and medium-sized business financing, leveraging proprietary risk models and advanced technology to deliver fast, flexible capital solutions. The company is committed to helping entrepreneurs and established business owners maintain and grow their operations.