Direct Capital business loans review December 2018 |

Direct Capital business loans review

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Loans of up to $150,000 to help small businesses manage cash flow.

Direct Capital offers loans to small businesses looking to pay for inventory, equipment, manage cash flow, marketing and working capital. Businesses with good credit can qualify for low rates, but beware of daily repayments.
Product NameDirect Capital Business Loans
Min Loan Amount$1,000
Max. Loan Amount$150,000
APR9.99% (as low as)
Interest Rate TypeFixed
Minimum Loan Term.5 year
Maximum Loan Term1.5 years
RequirementsYour business must be at least two years old with an annual revenue of $150,000 and an average bank balance of $3,000.
  • Business must be at least two years old
  • Generate an annual revenue of $150,000.

First, do I qualify?

To qualify for a working capital business loan with Direct Capital, your business must be at least two years old and generate an annual revenue of $150,000.

What is Direct Capital?

Direct Capital is a division of CIT Bank that provides a range of financial products and loan solutions to small businesses. This provider allows businesses to apply for loans online and offers working capital, equipment financing, franchise financing, business savings accounts and CDs.

What makes Direct Capital unique?

Direct Capital is an online lender, which means the application and funding process take place entirely online.

Direct Capital advertises an application that takes as little as three minutes to complete. If your application is approved, you could receive same day access to your funds.

What are the benefits of a working capital loan with Direct Capital?

  • Online application. No need to worry about booking an appointment with a loan officer. Applications with Direct Capital are entirely online.
  • Quick turnaround. After your loan application is approved and you’ve submitted your documents, you could get access to your loan funds in as little as 24 hours.
  • Flexible term lengths. Loan terms of up to 0.50 years are available so you can select the term that best fits your business.

What to watch out for

  • Daily repayments. Making repayments daily can be difficult for businesses that don’t have regular cash flow or run into an unexpected expense.
  • Certificate of insurance. Should you opt to purchase equipment for your business with your loan funds, Direct Capital may request that you provide a certificate of insurance.
  • Lack of transparency. Direct Capital makes no mention of eligibility criteria or potential business loan fees on its site.

Compare more business loan providers

Rates last updated December 11th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
500+ personal credit score, 1+ years in business, $100,000+ annual revenue
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.

Compare up to 4 providers

What does the Internet say about Direct Capital?

Direct Capital doesn’t have many online reviews as of September 2018 and what’s there is mixed. While the Better Business Bureau (BBB) gives it an A+ rating based on factors like time in business and transparency.

But its 10 customer reviews aren’t all glowing. And nearly 100 Trustpilot users give it a mediocre rating of 8.3 out of 10. Many reviewers praise its customer service, calling it efficient, responsive and supportive. However, some complain of being charged a higher rate than initially being preapproved for on Direct Capital’s site.

How do I apply?


Before filling out your application with Direct Capital, make sure you and your business meet the following eligibility criteria:

  • Your business must be at least two years old.
  • Your business must have an annual revenue of $150,000.
  • You must have an average bank balance of $3,000.

Steps to apply

  1. Go to Direct Capital’s site and click Apply Now.
  2. Enter your full name, phone number, email address, business name and the loan amount you’re interested in applying for. Indicate that you’d like to apply for a working capital business loan. Click Next.
  3. Enter your business address, phone number, time in business and tax identification number. Click Next.
  4. Tell Direct Capital more about yourself, including your full address, date of birth and the percentage of the business that you own. Add any additional owners of the business to the application and click Next.
  5. Review your application and Direct Capital’s application terms and conditions. Click Apply Now.

After it receives your application, Direct Capital gives you a confirmation number. You’ll get an email with your application details and the name and contact
information of your financing manager. Monitor the status of your application from its site by creating an online account with Direct Capital.

Once your application is reviewed, you’re contacted by Direct Capital with a decision. If you need to upload additional documents for Direct Capital, do so through your online account.

If your application is approved, you could receive access to your loan funds in as little as 24 hours.

What documents do I need to apply?

  • Business tax ID.
  • Bank statements for the previous three months.

What other business loan options does Direct Capital offer?

In addition to its working capital business loans, Direct Capital also offers equipment financing loans and franchise financing.

Direct Capital’s equipment financing loan is specifically designed to help you fund your next big equipment purchase for your business. Loans of up to $500,000 are available with terms of up to 72 months and interest rates that start at 5.49%.

Or, help finance your franchise with loans of up to $500,000 and terms of up to 84 months. Use your funds to buy inventory or equipment, upgrade your tech or hire new talent.

I got a Direct Capital working capital business loan. Now what?

  • Grow your business. Use your loan funds to expand your horizons and acquire the resources your business needs to thrive.
  • Monitor your loan online. Log into your online account with Direct Capital to check on your repayments.
  • Reach out to Direct Capital. If there are any hiccups during the repayment term, call your loan officer at Direct Capital by phone or email seven days a week.

Bottom line

Direct Capital offers working capital loans of up to $150,000 to help you grow your business. But its lack of transparency about fees and prepayment penalties and daily repayments can make you look elsewhere.

It never hurts to explore your options with additional providers. Compare your rates with other business lenders to see how Direct Capital stacks up.

Frequently asked questions

Shannon Terrell

Shannon Terrell is a writer for who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.

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