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LAST UPDATED: June 27th, 2019

Direct Capital is a financial company and division of CIT Bank, N.A. The company offers small to mid-sized business owners financing options as well as other financial products and services. Direct Capital provides equipment leasing and financing, working capital, and franchise financing options to businesses throughout the United States. Online complaints from previous customers appear to mainly concern high-interest rates and other fees the company charges for these loans.

Direct Capital was founded in 1993 in Portsmouth, New Hampshire. According to its corporate website, the company has issued over $2.25 billion in loan funding to more than 80,000 businesses. Consumers that choose Direct Capital should remember that they must have a credit score of 550 or higher.

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The Good

  • Small Business Loans
  • Loan Types
  • Flexible Payment Plans
  • Educational Resources

Small Business Loans

Direct Captial provides small business loans that prove beneficial to many borrowers, including:

  • Receive funds within one day
  • Flexible payment plans
  • Fixed interest rates
  • Loan approval within one day
  • 5.5 percent starting APR
  • Seasonal and deferred payments available

Loan Types

Direct Capital offers three types of business loans: equipment financing, working capital, and franchise financing. The company offers flexible financing payment plan options and fixed fees as low as 5.5 percent, depending on credit history. Terms range anywhere from 30 days to 84 months.

Flexible Payment Plans

Direct Capital has options for both daily and monthly loan repayment. Seasonal and deferred payments are also available to certain qualified applicants.

Educational Resources

The company features numerous educational articles on its corporate blog and financial resources on its website. Consumers can estimate monthly payments based on requested loan amount prior to filling out an application. Consumers can also speak to a customer representative by phone to receive answers to any questions that might arise.


The Bad

  • Low Amounts of Capital
  • Negative Customer Feedback
  • Collateral Confusion

Low Amounts of Capital

Direct Capital only lends up to $250,000, which may not be enough funding for many businesses. Similar competitors offer loan financing up to $1 million for small business loans. Credit score requirements for qualifying for Direct Capital loans are not publicly disclosed on the website.

Negative Customer Feedback

Numerous online complaints from previous customers report that the company charges high-interest rates and numerous other fees with their loan financing. The company states its interest rates range from 5.5+ percent fixed fee, yet online consumers report interest rates being charged to at least 20 percent. Direct Capital does not publicly disclose its prepayment, origination, or closing fees on its website.

Collateral Confusion

Direct Capital states on its corporate website that it does not require collateral for obtaining funding approval; however, numerous online reports from consumers state that the company does require collateral during the approval process. Compare to Other Business Loans


The Bottom Line

Direct Capital is best suited for small business owners in need of quick financing. Borrowers can access up to $250,000 for inventory purchases, payroll, and other working capital purposes. The company is not transparent to the general public in regards to its application requirements and loan fees and has received numerous customer complaints about its business practices.

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