National Funding Announces Record $220M Deal
Small business lender National Funding has announced a record $220 million asset-backed securitization. The deal was oversubscribed and achieved a significant improvement in yield, signaling strong investor confidence in the small- and medium-sized business financing sector.
This deal is National Funding's fourth and largest securitization to date, representing a $75 million upsize of its Series 2025-1 issuance. The notes were approximately 3x oversubscribed across all four classes of bonds, signaling robust investor demand. Guggenheim Securities acted as the sole structuring agent and sole book runner for the transaction. The transaction priced at a blended yield of 6.13%, a significant improvement of 92 basis points compared to the original issuance in May 2025. This improved pricing lowers National Funding's cost of capital, generating additional value that the company plans to use to expand access to capital for small businesses. The notes received ratings from Kroll Bond Rating Agency, ranging from AA- for the Class A notes to BB for the Class D notes. This record issuance continues National Funding's history of leveraging asset-backed securitization to fuel its growth. The company's second securitization, completed in October 2022, was for $125 million and was also structured by Guggenheim Securities. Under the leadership of CEO David Gilbert, National Funding has provided over $4.5 billion in capital to more than 80,000 small and medium-sized businesses. The success of this deal reflects a broader trend in the asset-backed securities (ABS) market, where non-bank lenders are increasingly turning to this form of financing. The U.S. ABS market reached over $290 billion in 2023 and is projected to continue growing. This growth is driven by strong investor appetite for higher-yielding assets and the rise of fintech originators in the small business lending sector.
