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Review by proud2byerbud3 years ago
I am not a person who leaves a lot of reviews, but if you're thinking of using Direct Capital, you should know a couple caveats:
1. After you sign up for the loan, you will be required to provide a special Certificate of Insurance (COI) to show that you're insuring whatever they funded. This is not a normal COI, but a special COI, which means that your insurance company has to be able to put a lot of very specific requirements that aren't normally required on a normal COI. There's an almost certain chance that your insurance company won't be able to meet this requirement (mine couldn't), and I honestly think Direct Capital counts on this as an income stream. My loan interest started at 10%; however, when you add the cost of their insurance, the equivalent interest rate exceeded 37%.
2. Direct Capital does not provide detailed financial statements to its customers. You will not know how much they are taking out per month, or how much of that is principal, interest, and fees. They claim that they'll provide it on request via email, but I've requested this same information for several months and I've given up trying. I basically cannot reconcile my accounting, because I don't know how much went to what.
3. Their customer service department is wired to provide ambiguity. They refuse to provide account details in any form, and they say that it's the customers "responsibility" to do the math themselves and figure out how their money is being applied to the loan.
So, why two stars? Simple: DC is a company that manages to straddle the space between legitimate bank loans and cash advance scammers. They WILL take more money than you bargained for and they WILL be frustrating to work with... BUT, but.. if your company cannot get a legitimate loan, they are the cheapest option among the alternative lenders. In other words: among all the conniving, cheating loan outfits on the internet, they are probably best-in-breed.
**You can decide if the headache is worth the cost savings, but my recommendation? Use a credit card; it's cheaper and you know where your money is going.**