Direct Funding Now review
This lender's lack of transparency may make it more difficult to know what you're getting into.
Bottom line: Direct Funding Now offers standard term loans, lines of credit and equipment loans for business owners who meet its basic requirements. But while we were able to call for more information, its minimal website doesn’t include a contact page or an FAQ — which means you won’t know exact terms unless you fill out its application.
|Product Name||Direct Funding Now business loans|
|Loan Term||Up to 60 months|
|Requirements||$150,000+ annual revenue, 12+ months in business, business checking account, 500+ personal credit score|
Kellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for everyday people to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise.
Direct Funding Now could be a good choice for newer businesses and business owners with low credit scores. However, there is quite a bit of missing information on its website, and there are very few recent reviews from 2020. In addition, it was fined by the California Department of Business Oversight in early 2020 for lending with a revoked license after it failed to pay the licensing fee. While this doesn’t directly impact its lending practices, the lapse in licensing may be a red flag for borrowers who want a lender that is consistently above board.
Because of this, you may want to compare more loan options before you submit your personal and business information to Direct Funding Now.
- Bad personal credit OK
- History of positive customer reviews
- Not transparent about fees or terms
- Limited customer reviews from 2020
- Faced government actions for lending with revoked license
Direct Funding Now rates, fees and terms
Direct Funding Now offers four types of loans: short-term business loans with terms of one to 24 months, traditional term loans, lines of credit and equipment loans. However, it isn't clear about the interest or fees — or in some cases, loan terms — for its options.
While your business can borrow between $5,000 to $500,000 in general, you can only borrow up to $100,000 on a line of credit. And there is no set loan amount for its short-term loans or equipment loans.
When we called about its term loan option, we were told interest rates range from 4.25% to 10%. The exact rates your business qualifies for depends on its finances and your personal credit score, along with the type of loan you choose to borrow.
How Direct Funding Now compares to other lenders
To see more loan options, select your annual revenue, desired loan amount, personal credit score and time in business.
Direct Funding Now reviews and complaints
|BBB customer reviews||4.9 out of 5 stars, based on 262 customer reviews|
|BBB customer complaints||1 customer complaints|
|Customer reviews verified as of||28 January 2021|
Direct Funding Now receives quite a few positive reviews on its BBB page, but almost all are from before 2020 — so it's not clear how well it served businesses amid the coronavirus pandemic. And while many reviews from 2019 are positive, they're quite vague and don't say much about the actual loan process.
How to qualify
Direct Funding Now only has a few set requirements your business needs to meet:
- Annual revenue of $150,000 or more
- At least 12 months in business
- Active business checking account
However, there is some conflicting information on its website. When you apply for a loan, it states that you may only need six months in business and an annual revenue of $100,000. To see if your business qualifies, reach out to Direct Funding Now's customer service team before applying for funding.
How the application works
The application process is relatively straightforward. You will need to submit standard information about yourself and your business. You may also be asked to connect your business bank account, but this step isn't necessary and can be skipped — which you may want to do since most lenders don't require you to connect your bank account until after you finalize your loan.
From here, Direct Funding Now will contact you by phone or email to finalize your information and set up your loan account if you're approved.
What information do I need to apply?
Direct Funding Now will ask for the following information when you apply for a loan:
- Personal phone number
- Ownership percentage
- Business and personal address
- Business tax ID
- Date of birth
- Social Security number
How do repayments work?
Direct Funding Now only accepts ACH transfers for its monthly loan payments. If you have any questions or run into any issues, you can reach out to customer service through its contact number.
Direct Funding Now offers standard loan options, but its lack of transparency may be an issue for some. If you're on the fence, compare more business loans to see what other lenders have to offer.