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.
Direct Capital business loans are designed for small to mid-sized companies that need access to quick financing. It is unclear what credit score or other application requirements are necessary for borrowers to have, since the company does not disclose this information on its website. Typically, credit scores over 680 qualify applicants for lower interest rates. Small business owners should be prepared to submit a business plan, cashflow projections, and balance sheet during the application process.
Loans from Direct Capital are best suited for inventory and equipment purchases, working capital, and cash flow management.
- Business documentation may be necessary.
- Credit scores over 680 typically qualify an applicant for the lowest interest rates.
- Collateral may or may not be required.
Direct Capital provides small businesses with the opportunity to apply, qualify, and obtain a loan all within 24 hours. Repayment is customized to each business and fixed interest rates are available. Borrows that use Direct Capital can expect the following from the service:
Pros of Direct Capital Small Business Loans
- Receive Funds within One Day
- Flexible Payment Plans
- Fixed Interest Rates
- Loan Approval within One Day
- 5% APR Rates
- Seasonal and Deferred Payments Available
Offered 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 7 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.
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.
Even though Direct Capital can help a wide variety of businesses obtain the financial assistance they need to get things started, there are downfalls to their system as well. These limitations include the following items:
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% to 7% 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.
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.
Frequently Asked Questions
How long will it take to receive funds from Direct Capital?
Direct Capital is able to transfer funds to the borrower in less than 24 hours.
Does Direct Capital require collateral with its loans?
Direct Capital does require collateral in order to receive loan funding in certain cases.
Does Direct Capital have prepayment penalties?
The company does not publicly disclose its prepayment penalties.
Does Direct Capital charge origination fees?
The company does not publicly disclose its origination fees.
Does Direct Capital charge closing fees?
The company does not publicly disclose its closing fees.
How can I contact Direct Capital?
Consumers may contact the company by phone at 1-866-777-0117.
Types of Loans Offered
Equipment Financing, Working Capital, Franchise Financing
Fixed fee as low as 5.5%–7%
30 days to 84 months terms
The Borrowing Process
Consumers can apply for a small business loan by visiting the company’s website and entering some basic information through an online application form. The application process takes approximately three minutes and requires data such as business income, credit history, and other relevant personal information. Personal and/or business collateral may or may not be required and the company may ask for certain business documentation for loan approval. Borrowers are able to get approved and receive funds in one day.
How to Apply
While Direct Capital states it works with small to mid-sized companies, it does not detail its requirements for its ideal borrowers. From information gleaned from online customer reviews, borrowers will need to have a high credit score and substantial annual income on a consistent basis in order to qualify for a small business loan.
To apply for a Direct Capital business loan, consumers can complete an online application form on the company website. The application will ask for the requested loan amount, business information, and relevant personal information. Business owners will most likely need to submit a business plan, accounting documents, and proof of any assets or liabilities.
Required collateral and charged interest rates depend highly on credit history and income factors. Both approval and fund transfer times take approximately less than 24 hours. Loan documents can be electronically signed and emailed back to the company. Once these documents are received, funds are transferred immediately to the borrower’s bank account.