Today, thanks to innovations in technology and financing, small and medium-sized businesses have a lot of funding options when they seek additional cash flow. One attractive option is QuickBooks Capital.
QuickBooks Capital works seamlessly with QuickBooks, the most popular business accounting software tool used by small businesses. QuickBooks Capital has helped more than 628 million businesses with their financing, making it an option that small businesses should definitely consider to help cover their funding needs.
In this guide, we discuss how QuickBooks Capital works, who qualifies for loans from QuickBooks Capital, the types of loans offered, and alternatives to know before you make a decision.
What is QuickBooks Capital and how does it work?
QuickBooks Capital is a service offered by Intuit Financing Inc. that helps businesses access a variety of credit offerings, such as peer-to-peer loans, small business administration loans, and short and long-term loans. By performing a “soft pull” on an applicant’s personal credit history and supplementing that information with their QuickBooks data, QuickBooks makes it possible for business owners to compare rates across various options without hurting their personal credit scores.
QuickBooks Capital is one of the offerings available on the QuickBooks Financing marketplace. QuickBooks Financing is a marketplace of small business lending products that include offerings like short and long term loans, lines of credit, peer-to-peer loans and Small Business Administration loans, all from a set of financial partners vetted by Intuit.
The QuickBooks Financing platform has made it relatively easy for businesses to explore and obtain new financing.
Who Qualifies for Loans from QuickBooks Capital?
Lenders use many factors when determining which businesses qualify for loans from QuickBooks Capital. Lender considerations include:
- Years in Business - Many of QuickBooks partners, including QuickBooks Capital, prefer working with businesses that have been around for at least two years.
- Revenue - QuickBooks Capital wants businesses to show at least $45,000 in revenue in the past year in order to approve their funding requests.
- Credit History - Some lenders on the QuickBooks platform determine your eligibility by reviewing your personal credit history and your business credit history.
- Debt history - Lenders often ask to see your debt records. If there are any instances of late payments or liens on your business, or, conversely, if you have a history of repaying other loans in full and on time, this can affect your chances for pre-approval.
- Industry - QuickBooks Capital maintains a “prohibited industry list.” If your business is in one the prohibited industries, you won’t be eligible for the service.
Business that already use QuickBooks software can pre-populate their QuickBooks data in their application, saving owners and lenders time they would otherwise spend filling out and reviewing lengthy application forms.
Because the entire process of applying through QuickBooks is electronic, you can expect a pre-approval decision in as little as one business day, making loan applications through QuickBooks efficient and relatively painless.
Why Get a Loan?
Some of us were raised to look at debt as a negative thing to be avoided at all costs. However, there are times when debt financing is actually the most cost-effective strategy for growing a successful business. In some cases, taking on a little bit of debt today will lead to a positive return on investment and be worth the effort and risk.
Having extra cash flow can extend the runway for small businesses, lead to more revenue, or allow a business to expand into new markets. Here are a list of more ideas on what businesses often do with a loan:
- Real estate - If your company is so successful that you need to expand to a larger office or open another location, congratulations! Few business owners will have the cash on hand to do this without financing, making this one of the most common reasons for owners to take on debt.
- Inventory - Businesses can restock their offerings to offer their services to more customers. One common reason to finance inventory is to get ahead of a seasonal need for product that customers will predictably purchase again and again.
- Hiring/Payroll - Continue to keep and reward great talent and bring in new one employees. Profits may ebb and flow, but employees need salaries on a regular schedule.
- Marketing - Grow your reach by hiring an SEO analyst, purchasing more online ads or collaborating with content creators to market your business and reach out to new potential customers
- Upgrades - A business does not always need to spend cash flow on growth - it can also just be applied to improving the current operations of your business, such as updating or expanding your office, purchasing better office furniture or equipment, or organizing team events to boost morale within the company, leading to better employee retention and productivity.
With more capital, there are endless ways to grow your business and expand its potential.
Another Way to Get Financing: Consider Fundbox
QuickBooks partners with a variety of reputable lenders that business owners can access within the QuickBooks platform. One of these is Fundbox.
Fundbox helps provide cash flow for businesses without requiring a traditional loan application. It is a modern option for small businesses to gain access to funding to help handle cash flow volatility.
With Fundbox, small businesses can get approved for credit in hours and can receive funds in their bank account in as little as one business day. Fundbox offers a transparent fee structure, and no penalty fees for early repayment. Since Fundbox fees are flat, repaying early can save you a lot of money compared with a conventional loan on a front-loaded amortization schedule.
Fundbox is a unique option among several available through the QuickBooks Financing platform.
Why and How to Use Fundbox
As mentioned above, Fundbox helps provide access to credit for small businesses. Founded in 2013, Fundbox has already helped over 70,000 businesses expedite their cash flows.
Fundbox assesses businesses based on performance metrics and the overall health of the business, not based on the owner’s personal credit score. Small businesses can be approved for funding in just hours and can get an advance as quickly as the next business day.
Registration is free and fast: it only takes a few seconds to get started. All you need to do is link your business bank account or your approved accounting software, such as QuickBooks. Fundbox will review your information to make a credit decision in under 3 minutes!* Fundbox provides credit limits from $1000 to $100,000.
The fees for Fundbox are transparent and can paid weekly spread across 12 or 24 weeks; you decide. If approved, you will also be given the option to waive all remaining fees by paying back the full loan amount early. The fee structure simple to understand, and has with no origination fees, maintenance fees, or inactivity fees.
Even if you do not need capital now, it can’t hurt to sign up and see what you qualify for in case you need funds at a later date.