EX-99.1 2 tm2225674d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

National Funding, Inc.

NFAS2 LLC – Asset-Backed Notes, Series 2022-1

Consulting Report

August 17, 2022

For information related to this report, contact: CBIZ MHM, LLC 401 Plymouth Road, Suite 200 Plymouth Meeting, Pennsylvania 19462

M. Michael Aquino	Kristin Stanton
Lead Managing Director	Senior Manager
(610) 862-2737	(610) 862-2205
maquino@cbiz.com	kstanton@cbiz.com

THIS REPORT IS FOR CLIENT’S INTERNAL USE ONLY AND SHOULD NOT BE RELIED UPON BY
ANY THIRD PARTY

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

National Funding, Inc.

Consultant Engagement

Name:

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022 -1

Address:

National Funding, Inc.
9530 Towne Centre Drive
San Diego, CA 92121

Consultant:	Tara Haurin
	Andrea Lundquist
	Kristin Stanton

Report Date:	August 17, 2022

Engagement Dates:	August 11 -17, 2022

Company Contact:

Michael van Asselt, CFO

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

August 17, 2022

PRIVATE & CONFIDENTIAL

Michael van Asselt - CFO
National Funding, Inc.
9530 Towne Centre Drive
San Diego, CA 92121

Dear Mr. van Asselt:

Please find our enclosed Consultant Report (“the Report”) which was prepared at the request of National Funding, Inc., as Seller and Servicer (“National Funding”) and NFAS2 LLC (“Issuer”, SPV” and “Company” and together, “Client”) as it relates to the Asset-Backed Notes, Series 2022-1 transaction in connection with the Preliminary Offering Memorandum (“POM”), which date still needs to be determined (“Transaction”) and in accordance with the terms of our engagement letter dated August 3, 2022 (“Services”).

Client Acknowledgements

By acceptance of the Report, you acknowledge that (1) you have determined that the procedures we performed are the procedures that you requested us to perform, that you are solely responsible for the sufficiency of such procedures for your purposes, and that you do not require us to perform any further procedures, (2) we make no representations and express no opinion as to the sufficiency of the procedures for your purposes and had we performed additional procedures, other matters might have come to our attention that would have been reported to you, (3) the procedures that we performed should not be taken to supplant additional inquiries and procedures that you should undertake in your evaluation of the Transaction, (4) you have made available to us all financial records and related data that you received from the Company that you believe are necessary for us to complete our procedures, and (5) the decision whether to consummate the Transaction lies solely with you, and neither our work nor our findings shall in any way constitute a recommendation whether you should or should not consummate the Transaction, or on what terms.

Limitations of Procedures

The procedures we performed do not constitute, in accordance with generally accepted auditing or other applicable professional standards, (1) an audit, review, or compilation of the Company’s historical financial statements or specified elements, accounts or items thereof as per the attestation standards established by the American Institute of Certified Public Accountants, (2) an examination or compilation of the Company’s prospective financial information, (3) an appraisal of the Company or of any of the Company’s assets or liabilities or (4) an examination of the Company’s internal controls, and, accordingly, we express no opinion, limited assurance or any other form of assurance thereon and our work cannot be relied upon to disclose errors, fraud or illegal acts that may exist.

The Report contains a description of the following:

(i)

the type of assets;

(ii)

the sample size;

(iii)

how the sample size was determined and, if applicable, computed; and

(iv)

the scope and manner of the Services performed.

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

None of the engagement Scope Procedures or Report was intended to address, nor did they address, the following:

(i)

the value of collateral securing such assets;

(ii)

the compliance of the originator of the assets with federal, state, and local laws and regulations; or

(iii)

the conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements.

We have not verified the information we obtained or presented in the Report, unless specified therein.

Use of the Report

This letter and the Report are solely for your information and internal use and to assist you in the evaluation of the Transaction. You agree that without the prior written consent of CBIZ MHM, LLC (“CBIZ”), you will not circulate, quote or otherwise refer to this Report or a copy of all or any portion thereof. Notwithstanding the foregoing, you may provide copies of the Report in accordance with the terms and conditions set forth in the Engagement Letter dated August 3, 2022 and to your legal representatives or other professional advisors solely for their informational use in connection with the Transaction provided that (1) this letter shall be attached at the front of the Report at the time of disclosure, and (2) any such legal representative or other professional advisor has agreed to keep the Report confidential and fully releases CBIZ from any liability arising out of, or in reliance upon, this Report.

Updating the Report

We have no responsibility to update this letter or the Report for events or circumstances occurring after the date of this letter.

Very truly yours,

CBIZ MHM, LLC

By:	/s/ M. Michael Aquino
	M. Michael Aquino, Lead Managing Director

CBIZ MHM, LLC

THIS REPORT IS FOR CLIENT’S INTERNAL USE ONLY AND SHOULD NOT BE RELIED UPON BY ANY THIRD PARTY

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

Legal Notice

This Report is provided solely to Client for its internal use and information, pursuant to our Engagement Letter dated August 3, 2022 with no third party beneficiaries being created thereby and is subject in all respects to the terms and conditions of that letter, including restrictions on disclosure of this Report to third parties.

If this Report is received by anyone other than Client, the recipient is placed on notice that the attached Report has been prepared solely for Client for their internal use and this Report and its contents may not be shared with or disclosed to anyone without the express written consent of Client and CBIZ MHM, LLC. CBIZ MHM, LLC shall have no liability, and shall pursue all available legal and equitable remedies against recipient, for the unauthorized use or distribution of this Report to third parties.

Legal Representation

Client acknowledges and agrees that it is responsible for its own legal representation and guidance related to the Transaction and that it will consult its own legal resources before acting upon any deliverables CBIZ MHM, LLC provides under this Agreement. Client further acknowledges and agrees CBIZ MHM, LLC is not a law firm and is not providing legal advice or analysis and that CBIZ MHM, LLC has not engaged legal counsel with respect to the services, and that matters of legal interpretation are beyond the scope of the Services. CBIZ MHM, LLC expressly disclaims any and all responsibility for the accuracy, adequacy, completeness or appropriateness of any legal document, relating to the Transaction or otherwise, reviewed during the performance of Services as outlined herein.

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

General Information

During this engagement, CBIZ MHM LLC held discussions with the following individuals (collectively referred to as “management” in the report unless otherwise specified):

Contact Name		Title/ Department
Michael van Asselt		CFO
Allison Nazareth		Sr. Treasury Analyst
Chelsea Johnson		Director, Business Intelligence
Alia Burdick		Director, Product Development

Note:

All samples were selected as stated in the Statement of Work included in the report unless specified by the Client. Slight mathematical variances may be noted in the tables presented due to rounding.

Terminology

The following terminology is used throughout this Report and is based on discussions with management.

·	Client	National Funding, Inc. and NFAS2 LLC

·	National Funding, Seller and Servicer	National Funding, Inc.

·	Company, Issuer, Purchaser or SPV	NFAS2 LLC

·	Loan Agreement	Loan Agreement between National Funding and Merchant

·	Loan	Receivables or Loans

·	Receivables Agreement	Receivable Agreement between National Funding and Merchant

·	Receivables	Merchant cash advances

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

TABLE OF CONTENTS

Statement of Work		7

Scope of Services		8

A. Data Integrity Test		9

EXHIBITS

Exhibit A.1

Data File Integrity Test as of June 30, 2022

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

STATEMENT OF WORK

PURSUANT TO THE ENGAGEMENT LETTER
DATED AUGUST 3, 2022 BY AND BETWEEN
CBIZ MHM, LLC (“CBIZ”)
AND NATIONAL FUNDING, INC. (“SELLER” AND, “SERVICER”) AND NFAS2 LLC (“ISSUER”,
“SPV”, “PURCHASER” OR “COMPANY”), COLLECTIVELY “YOU” OR “CLIENT”

Relevant Entities:

National Funding, Inc., as Seller and Servicer (“Seller” and “Servicer”) and NFAS2 LLC (“Issuer”, “SPV”, “Purchaser” or “Company” and together with the Seller and the Servicer, “you” or “Client”)

Time Periods to be tested:

See the below Scope of Services

Location:

Remotely in the CBIZ office in Plymouth Meeting, PA

The Company’s office in San Diego, CA (if necessary or required)

Additional Request:

Document all discussions with and inquiries of management.

Note: All samples are judgmentally selected unless specified by Client.

Consultant report should provide for glossary of defined terms which will serve as a point of reference for all capitalized terms found in the consulting report.

Consultant report should provide for a table listing individuals at the Company that provided assistance and/or are referenced in the consultant report. Table should provide for the following: name, title, phone number, affiliation, and tenure.

Consultant report should separately identify material weaknesses from observations made that may represent improvements to the Company’s processes.

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

SCOPE OF SERVICES

Data Integrity Test for National Funding (yet to be named pending transaction)

From the electronic data file provided by the Client as of June 30, 2022 or latest month-end, select a sample of the largest 80 SMB Loans and the largest 20 Receivables Agreements (merchant cash advances) and another 80 SMB Loans and 20 Receivables Agreements (merchant cash advances) selected on a judgmental basis (total of 200 Merchant Agreements to be tested - "Sample Group") and perform the following data integrity test. For items marked below as "confirm", note whether the item is noted as part of the underlying documentation. For items marked as "compare", agree the item on the data tape to the Company's underlying system. For items marked as "calculate ", calculate the noted item listed below for accuracy against the data file provided by the Servicer:

Confirm and Compare Merchant name

Compare the Merchant’s state of business address

Compare Merchant’s SIC Code (industry)

Compare applicant's FICO Score (at the time of origination)

Compare internal credit tier (at the time of origination)

Confirm and Compare payment frequency (daily or weekly)

Compare the Merchant's year founded date (at the time of origination)

Calculate the Merchant's years in business (at origination)

Calculate and Compare Merchant's Outstanding Receivables Balance (as of the end of the applicable Collection Period)

Calculate the Merchant's original expected term

Calculate the Merchant's remaining expected term (as of the end of the applicable Collection Period)

Compare the Merchant's factor rate

Calculate the Calculated Receivables Yield at origination

Compare the Merchant's Material Modification flag (as of the end of the applicable Collection Period) (Y/N)

Calculate and Compare the missed payment factor (as of the end of the applicable Collection Period)

Calculate and Compare the delinquency status (as of the end of the applicable Collection Period)

Calculate and Compare the Performance Ratio (amount actually received / amount expected to be received)

Document your testing results in a worksheet. In your written summary of results, note any exceptions and management's response to such. Note that the names of Obligors should remain anonymous in documenting test results

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

Data Integrity Test for the Asset-Backed Notes, Series 2022-1 Transaction

The Client provided a loan / merchant cash advances data file tape as of June 30, 2022 for all such accounts in the portfolio. From the aforementioned data file tape, the consultant selected a sample of the largest 80 SMB Loans and the largest 20 Receivables Agreements (merchant cash advances), and another 80 SMB Loans and 20 Receivables Agreements (merchant cash advances) selected on a judgmental basis (total of 200 Merchant Agreements to be tested - "Sample Group"). All 200 Merchant selected accounts were tested according to the requested scope procedures.

The Client provided the consultants with direct access to the Company’s operating system (“Salesforce”). All of the items required to be tested were available or received by the consultants. The consultants’ data file integrity test schedule for the data file integrity test can be found as Exhibit A.1.

The consultants noted the following results and exceptions amongst the sampled 200 Merchants based on inquiry of management and testing:

DATA FILE ITEM TESTED		SAMPLE SIZE		NO EXCEPTIONS FOUND		EXCEPTIONS FOUND		%
a.	Merchant name		200		200		0		0	%
b.	Merchant’s state of business address		200		200		0		0	%
c.	Merchant SIC code (industry)		200		200		0		0	%
d.	Applicant FICO Score (at time of origination)		200		200		0		0	%
e.	Internal credit tier		200		200		0		0	%
f.	Payment frequency		200		200		0		0	%
g.	Merchant’s year founded date		200		200		0		0	%
h.	Merchant’s years in business		200		200		0		0	%
i.	Merchant’s Outstanding Receivables Balance		200		200		0		0	%
j.	Merchant’s original expected term		200		200		0		0	%
k.	Merchant’s remaining expected term		200		200		0		0	%
l.	Merchant’s factor rate		200		200		0		0	%
m.	Calculated Receivables Yield at origination		200		200		0		0	%
n.	Merchant’s Material Modification Flag		200		200		0		0	%
o.	Missed payment factor		200		200		0		0	%
p.	Merchant’s delinquency status		200		200		0		0	%
q.	Performance Ratio		200		200		0		0	%

(a)

The Merchant name on the data file tape was compared to the Company’s operating system (“Salesforce”) and confirmed to the Merchant name on the Loan Agreement without exception.

(b)

The Merchant's state of business address on the data file tape was compared to Salesforce, Apollo, or Phoenix without exception.

National Funding, Inc. and NFAS2 LLC
Asset-Backed Notes, Series 2022-1

August 2022 Report

(c)

The Merchant SIC Code (industry) on the data tape was compared to Salesforce without exception.

(d)

The applicant FICO Score at the time of origination on the data file tape was compared to Salesforce without exception.

(e)

The Merchant internal credit tier was compared to Salesforce without exception.

(f)

The Merchant payment frequency on the data tape was compared to Salesforce and confirmed to the Loan Agreement without exception.

(g)

The Merchant year founded date at origination on the data file tape was compared to Salesforce without exception.

(h)

The Merchant’s years in business at origination on the data tape were calculated without exception.

(i)

The Merchant’s Outstanding Receivables Balance as of 6/30/2022 on the data file tape was compared to Salesforce and calculated without exception.

(j)

The Merchant original expected term on the data file tape was calculated without exception.

(k)

The Merchant remaining expected term on the data file tape as of 6/30/2022 was calculated without exception.

(l)

The Merchant factor rate was compared to Salesforce without exception.

(m)

The Calculated Receivables Yield at origination on the data tape was calculated without exception.

(n)

The Merchant Material Modification flag as of 6/30/2022 on the data file tape was compared to Salesforce without exception.

(o)

The missed payment factor as of 6/30/2022 on the data tape was calculated and compared to Salesforce without exception.

(p)

The delinquency status as of 6/30/2022 was calculated and compared to the data tape without exception.

(q)

The Performance Ratio was calculated and compared to the data tape without exception.

National Funding, Inc.
NFAS2 LLC - Series 2022-1
Data Integrity Test as of June 30, 2022

Exhibit A.1

Data File against Operating System

Source Documents

FICO Score

Internal Credit

Years in

O/S

Original

Remaining

Calc'd Rec.

Material

Missed

Loan Number

Merchant

Merchant's

Merchant

Tier at

Payment

Year

Business

Outstd Rec.

Receivable

Expected

Expected Term

Yield at Orig.

Modification

Payment

Delinquency

Peformance

Merchant

Payment

Name

State

SIC Code

origination

Origination

Frequency

Founded

Calc

Balance

Balance Calc

Term Calc

Calc

Factor Rate

Calc

flag

Factor

Factor Calc

Status

Status Calc

Ratio

Ratio Calc

Name

Frequency

I. SMB Loans

FWC603134

TRUE

FWC613496

TRUE

FWC10245D

TRUE

FWC605474

TRUE

FWC614569

TRUE

FWC600514

TRUE

FWC603358

TRUE

FWC604947

TRUE

FWC336252C

TRUE

FWC607606

TRUE

FWC606501

TRUE

FWC604595

TRUE

FWC23483I

TRUE

FWC546577A

TRUE

FWC360798E

TRUE

FWC583097

TRUE

FWC55243F

TRUE

FWC602309

TRUE

FWC309076D

TRUE

FWC602385

TRUE

FWC597603

TRUE

FWC607523

TRUE

FWC599472

TRUE

FWC468790B

TRUE

FWC530213A

TRUE

FWC611734

TRUE

484-662734-1

TRUE

FWC555660A

TRUE

FWC607668

TRUE

FWC589897

TRUE

FWC538110B

TRUE

FWC595399

TRUE

FWC593896

TRUE

FWC609362

TRUE

FWC345959B

TRUE

FWC139850D

TRUE

FWC544886A

TRUE

FWC589735

TRUE

FWC600114

TRUE

FWC606008

TRUE

FWC607519

TRUE

FWC588145

TRUE

FWC36166C

TRUE

FWC598504

TRUE

484-424137-6

TRUE

FWC237497F

TRUE

FWC580633

TRUE

FWC314605C

TRUE

FWC60487C

TRUE

473-181177-2

TRUE

FWC605513

TRUE

FWC533987A

TRUE

FWC373005C

TRUE

FWC589234

TRUE

FWC436546A

TRUE

FWC590595

TRUE

FWC410900B

TRUE

FWC545146B

TRUE

FWC588287

TRUE

FWC293387D

TRUE

FWC611071

TRUE

FWC592716

TRUE

FWC377855D

TRUE

FWC609728

TRUE

FWC603622

TRUE

484-650644-1

TRUE

FWC508391B

TRUE

FWC597368

TRUE

FWC610642

TRUE

FWC579400

TRUE

FWC537840A

TRUE

484-408509-6

TRUE

FWC495448C

TRUE

FWC610745

TRUE

FWC409446D

TRUE

FWC555397A

TRUE

FWC609037

TRUE

FWC167866C

TRUE

FWC505469B

TRUE

National Funding, Inc.
NFAS2 LLC - Series 2022-1
Data Integrity Test as of June 30, 2022

Exhibit A.1

Data File against Operating System

Source Documents

FICO Score

Internal Credit

Years in

O/S

Original

Remaining

Calc'd Rec.

Material

Missed

Merchant

Merchant's

Merchant

Tier at

Payment

Year

Business

Outstd Rec.

Receivable

Expected

Expected Term

Yield at Orig.

Modification

Payment

Delinquency

Peformance

Merchant

Payment

Loan Number

Name

State

SIC Code

origination

Origination

Frequency

Founded

Calc

Balance

Balance Calc

Term Calc

Calc

Factor Rate

Calc

flag

Factor

Factor Calc

Status

Status Calc

Ratio

Ratio Calc

Name

Frequency

2-324002-10

TRUE

484-645573-1

TRUE

FWC306658D

TRUE

FWC557489-1

TRUE

FWC570760A

TRUE

FWC600800

TRUE

FWC605154

TRUE

FWC509113A

TRUE

FWC301212A

TRUE

484-653720-1

TRUE

FWC575744

TRUE

484-509548-6

TRUE

FWC346907B

TRUE

FWC467909C

TRUE

FWC559948A

TRUE

FWC597166

TRUE

FWC606334

TRUE

484-605306-1

TRUE

FWC545429A

TRUE

FWC544434A

TRUE

100

FWC517210-1

TRUE

101

FWC391624A

TRUE

102

FWC578496

TRUE

103

FWC603972

TRUE

104

FWC593918

TRUE

105

FWC156167E-1

TRUE

106

FWC597569

TRUE

107

FWC347203B

TRUE

108

FWC51233H-1

TRUE

109

FWC611189

TRUE

110

FWC554529A

TRUE

111

FWC47941B

TRUE

112

484-626851-1

TRUE

113

116-591517-4

TRUE

114

606-642472-1

TRUE

115

FWC115368F

TRUE

116

FWC568751

TRUE

117

620-653423-1

TRUE

118

FWC579124A

TRUE

119

FWC545000A

TRUE

120

484-631080-2

TRUE

121

160-634138-1

TRUE

122

116-570714-5

TRUE

123

FWC405685C

TRUE

124

484-633817-2

TRUE

125

629-638504-1

TRUE

126

484-607930-2

TRUE

127

FWC151768E-1

TRUE

128

FWC336548C-1

TRUE

129

FWC508132A

TRUE

130

484-622640-1

TRUE

131

3-393875-4

TRUE

132

FWC511690A

TRUE

133

484-470169-5

TRUE

134

209-639639-1

TRUE

135

FWC132981F

TRUE

136

440-645970-2

TRUE

137

FWC523686A-1

TRUE

138

484-626944-1

TRUE

139

FWC14987G

TRUE

140

484-545876-6

TRUE

141

FWC50556D

TRUE

142

FWC322933B

TRUE

143

FWC503624B-1

TRUE

144

484-630729-1

TRUE

145

FWC344323C

TRUE

146

484-620742-3

TRUE

147

3-621576-2

TRUE

148

3-571923-2

TRUE

149

FWC590970

TRUE

150

613-649388-1

TRUE

151

510-563193-2

TRUE

152

484-601017-1

TRUE

153

3-629591-1

TRUE

154

3-593151-2

TRUE

155

484-334379-6

TRUE

156

FWC553600-1

TRUE

157

484-364558-8

TRUE

158

FWC149664B

TRUE

159

FWC578638

TRUE

160

484-588062-3

TRUE

National Funding, Inc.
NFAS2 LLC - Series 2022-1
Data Integrity Test as of June 30, 2022

Exhibit A.1

Data File against Operating System

Source Documents

FICO Score

Internal Credit

Years in

O/S

Original

Remaining

Calc'd Rec.

Material

Missed

Merchant

Merchant's

Merchant

Tier at

Payment

Year

Business

Outstd Rec.

Receivable

Expected

Expected Term

Yield at Orig.

Modification

Payment

Delinquency

Peformance

Merchant

Payment

Loan Number

Name

State

SIC Code

origination

Origination

Frequency

Founded

Calc

Balance

Balance Calc

Term Calc

Calc

Factor Rate

Calc

flag

Factor

Factor Calc

Status

Status Calc

Ratio

Ratio Calc

Name

Frequency

II. Receivables Agreements (Merchant Cash Advances)

FWC158884E-1

TRUE

FWC254205E

TRUE

FWC78859D

TRUE

FWC606218

TRUE

FWC158884E

TRUE

FWC518452A

TRUE

FWC607371

TRUE

600-408203-4

TRUE

FWC608606

TRUE

FWC510953C

TRUE

FWC49532E

TRUE

FWC592108

TRUE

FWC604865

TRUE

FWC129004B

TRUE

FWC595663

TRUE

FWC610600

TRUE

FWC521706A

TRUE

FWC609328

TRUE

FWC612057

TRUE

FWC552895A

TRUE

FWC307999E

TRUE

FWC552895-1

TRUE

3-620372-2

TRUE

484-445122-6

TRUE

FWC76949D

TRUE

FWC510233A-1

TRUE

FWC448940C

TRUE

484-632266-1

TRUE

484-512719-2

TRUE

FWC609448

TRUE

FWC21188D-1

TRUE

FWC477321B

TRUE

484-416638-5

TRUE

557-598683-3

TRUE

3-517862-4

TRUE

FWC501192A-1

TRUE

600-13323-14

TRUE

613-604898-1

TRUE

484-607239-1

TRUE

542-526011-3

TRUE