National Funding, one of the largest U.S. specialty finance companies serving small- and medium-sized businesses, closed its second asset-backed securitization (ABS) for $125 million. Guggenheim Securities served as sole structuring advisor and the sole initial purchaser of the notes.

The facility has a 3-year revolving period, a 5-year legal final, and is expandable to $500 million. Led by National Funding CFO Michael van Asselt, the transaction closed on Thursday, September 22, and provides a 95% advance rate. National Funding served as risk retention sponsor. The notes were issued from a wholly owned subsidiary of National Funding, NFAS2 LLC, consisting of four classes. The most senior class of the three-tranche transaction earned a AA(sf) rating from Kroll Bond Rating Agency (KBRA). A revolving pool of short-term receivables secures the notes.

“We are committed to providing customized small business lending solutions, products, and resources to help foster small businesses’ financial well-being,” said van Asselt. To date, National Funding and its subsidiary, QuickBridge Funding have provided more than $4.5 billion in working capital solutions and equipment leasing for more than 80,000 small- to medium-sized businesses nationwide.

"As small businesses are finding themselves challenged in the current economic environment of inflation and aggressive rate hikes, closing on the $125 million securitization positions National Funding to continue to provide our support," said CEO and founder David Gilbert. "At National Funding, we believe in American small business owners. As one of the first alternative lenders in the marketplace with more than two decades of experience, we are healthier, stronger, and leaner than ever before."