Direct Capital
Direct Capital Overview
The aggregated data is based on reviews and questionnaires provided by PissedConsumer.com users.
Direct Capital has 1.3 star rating based on 29 customer reviews. Consumers are mostly dissatisfied.
- Rating Distribution
Pros: Think they are shady, Staff at direct capitol.
Cons: Bait and switch - lack of resolution, How they masked a lease as a loan, Interim rent scam.Most users want Direct Capital to offer a solution to their issues.
Media from reviews
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Verified ReviewerDON'T DO THIS DISGUISED LEASE AND INSURANCE SCAM
- Think they are shady
- Interim rent scam
- How they masked a lease as a loan
- Bait and switch - lack of resolution
Preferred solution: Let the company propose a solution
Scam Artists!
Apple corporate should drop CIT now
Never received original contract and can not get a copy
Rip off con artists!!!!
- Think they are shady
- Bait and switch - lack of resolution
- How they masked a lease as a loan
- Interim rent scam
Rip off
- Think they are shady
- Bait and switch - lack of resolution
- How they masked a lease as a loan
Preferred solution: Class action lawsuit
Dishonest sales tactics - misrepresentation - un willing to resolve issues.
I wish I would have read these reviews. Absolute worst experience and it continues to get worse.
Avoid at all cost. Do not trust them. I will take the blame for getting tricked into a bad contract even though they used pro-rated payments to hide higher financing charges. But the basic serving of the loan is terrible.
Prob the most expensive learning experience of my life. DO NOT PROCEED.
quoted me at 7.5% interest - switched to an outrageous rate factor at the last second. Assured me there is no early pay-off penalty.
Payoff is nearly 28% the equipment received. Also applied returned funds for unreceived equipment to the balance not the principal so I get to pay triple interest on non-existing equipment in which the finds were returned in full.
- Bait and switch - lack of resolution
Preferred solution: Payout of equipment only at 4% penalty
This is the worst company, stay away.
Direct Capital was perfect. Ask to remove interim payments and advance payment.
If you trying to find leasing for the first time direct capital can have a few surprises for you IF you don't pay attention to the contract and ASK FOR what you want. Remember they need you and want to compete for your business.
We leased some industrial equipment and got rates all over the place from %25-%6. The brokers can actually come in cheaper sometimes, however the best thing to do is go directly with the bank like direct capital. Most regular banks are not familiar with equipment leasing. The first thing regular banks will say is we can do a SBA loan which is a long process for established business.
Back to Direct Capital. When you apply and get an approval they will tell you your rate. What we did and it was more by accident was we shopped the deal with other lenders. When we got a lower rate we told everyone, everyone who gave us approvals. Eventually you will see who can really compete and who can not. Direct Capital started around %17 then went to %12 then got us well below %10 just by asking!!!
Next ISSUE: BE CAREFUL of the interim rent section of the agreement with direct capital !!! This is where most people get upset. They charge a rent fee from the start of contract to the first billing date, even when you don't have any equipment. So if you are 2 months out on your install date you loose 2 months of payments. YOU CAN get Direct Capital to remove this by demanding to waive the interim rent with an attached addendum added to the contract that comes via DOCUSIGN. The interim rent payment does NOT go towards the loan principle or the loan interest it's %100 goes into Direct Capitals pockets. SO READ YOUR CONTRACT AND ASK QUESTIONS PEOPLE!! If you have 2 months of interim payments it can be like adding a point to the interest rate of the loan.
Our next suggestion is start with a low request of money from lenders including direct capital. If you know you need $25k ask for $10-$15k. Get the approval then go back and up the amount later. Get past the microscope of your financials phase and it's easier to get approvals then to walk in and say hey I need 100k and get denied immediately with usually no counter offer. When you get these larger approvals that you really need then start asking for lower interest rates. The larger the deal will mean the lower the interest rate you will get. Banks want larger deals and know other banks will also lower their interest rates for $50k-$100k Plus.
Things get really interesting when you realize that you can sometimes get $70k for the same price as $50k because of the bank lending matrix they won't tell you about in terms of combined interest and principle. ASK FOR MORE MONEY AND LOWER INTEREST RATE. Then you can always back down the money you need once you captured a lower interest rate. This sounds a bit insane I know.
Lastly, tell direct capital you want the "Advanced Payment" removed from the contract. This is not the "Deposit" or doc fee. This is an advance payment that is negotiated for the back end of the contract they will say but it is collected on the front end AND can be removed via addendum or just upfront on the financing terms. You need to ask all this BEFORE you sign anything on docusign. Don't sign then ask later.
Odds are you are a professional who doesn't have time to source this out as much as we did. Some of what we found out was really by accident and vendors playing with us stalling us to commit which has nothing to do with the bank.
Overall I would rate Direct Capital 5 out of 5 after all the negotiations were completed and contracts were adjusted. I think Direct Capital would capture so much more business though if they told their customers how all this works. I think they feel most people won't read, care or understand the contract %100. However their marketing team needs to really look strongly at the amount of approvals that don't convert to closed deals, this will tell you how much you are loosing out.
Contract for End of lease is fraud
This lender is not good.
SCAM ARTIST DO NOT USE THEM
I am a small woman own company and I was told completely different things through email and on the phone that there's no prepayment penalties on contracts, then when I go to pay the contract off they want to charge me all the interest on the loan which makes absolutely no sense whatsoever therefore do not use them they are the biggest scam artist of any financing company ive ever use they truly hurt small businesses in the long run their selfish greedy sharks they've hurt my business terribly with the no disregard of other humans they will screw you in the long run.
Beware another unsatisfied customer
Let the *** walk.....Lets start by saying I have been in business for the last 38 years. I changed the name of my company over a year ago, so now they consider me a new company.
I gave them all the necessary paperwork to prove my status. They accepted it and still come back with the outrageous pricing. So first I get confirmed for $25000 loan, then its down to 13,660. All of a sudden I get an email stating that they wanted an advanced payment, 1 security payment, and a doc fee of $300.
So before I even get the loan they want me to pay $2960.00 out of $13660. What does Dane H. take me for a fool. I would make out better using a title company.
My credit score is over 770. How do you justify charging 17% interest. Don't get taken by these fools. Dane made it sound so good maybe he should wright fictional story books.
I would never recommend anyone to do business with this company. I know everyone is out to make a buck, but lets not slaughter the people trying to make a living.
Fortunate HVAC company in PA!!!!
Direct Capital is a bad company
HORRIBLE!!!!!
About
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Direct Capital was founded in 1993 in Portsmouth, New Hampshire by Christopher J. Broom. It is the sixth largest private finance company in the United States. Direct Capital provides its services for small and average businesses in the sphere of leasing equipment for a working capital. The company finances a lot of technology, software, new and second-hand equipment, including working capital loans, sales of used equipment, equipment financing, business cash advance, franchise financing and more. It is also a direct lender, which offers different finance solutions in minimum possible costs of means. However, the company also partners with a syndicate network of banks to upgrade the level of financing terms.
Direct Capital is ranked 292 out of 1016 in Loans and Mortgages category
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Indontnhabenancluenwhybanyoke would do this lease in their right mind , makes no sense , you pay like $1600 then still owe another $600 what a joke I was tricked too
pathetic company for sure