QuickBooks, from Intuit, is well-known as an industry-leading accounting software for small businesses. The company’s subsidiary, Intuit Financing, offers access to business funding through QuickBooks Capital. This business financing service provides quick and easy capital loans for eligible small businesses that use QuickBooks Desktop (QB Desktop) or QuickBooks Online (QBO).
However, you must be an active QuickBooks user and meet several other eligibility requirements to qualify. In addition, the limited options and high interest rates mean more advantageous options could be available.
This QuickBooks Capital review covers what you need to know to decide if it’s right for your business, including the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:
QuickBooks Capital is a financial service offered by Intuit Financing. It helps small businesses access loans. Business owners can apply for a business loan directly from their QuickBooks account.
The service offers installment loans and a line of credit. Additionally, users can apply for other small business loans through QuickBooks Capital Marketplace, which connects users to a network of QuickBooks lender partners.
Intuit partners with Web Bank to offer these financing products. The service leverages information in your business’s QuickBooks account to assess financial performance and determine loan eligibility. One of the benefits of QuickBooks Capital is that it automatically populates the application with information from your account, speeding up the application process.
Intuit launched QuickBooks Capital in 2017. It is a direct lender of term loans and lines of credit.
QuickBooks Capital provides financial solutions for small businesses. It offers two main products: Term Loans and a Line of Credit.
QuickBooks Capital Term Loans, aka installment loans, provide a lump sum of money upfront. These loans feature a fixed interest rate and consistent weekly or monthly payments using an automatic transfer from your business bank account.
One convenient feature of this option is the quick access to capital for cash flow. The QuickBooks Capital loan is considered short-term since terms only extend up to 24 months. Small businesses can use the funds for various purposes, such as purchasing inventory, business expansion, or covering operational costs.
These loans do not require collateral. Instead, business owners typically sign a personal guarantee, which is a promise to personally repay the loan if the business fails to do so.
The QuickBooks Capital Line of Credit works differently than term loans. It allows businesses to borrow up to a set limit. Companies can withdraw funds as needed, similar to a credit card. The business only pays interest on the amount drawn, making it flexible and affordable.
This option is ideal for managing cash flow gaps. For example, if a business has slow-paying customers, it can use this line of credit to cover expenses until payment arrives. Repayment terms are also flexible, allowing businesses to pay back what they owe at their own pace.
The line of credit is backed by unpaid QuickBooks invoices, making it a form of invoice financing. This means it’s only available for businesses with unpaid invoices.
The QuickBooks Capital Marketplace connects businesses with various lenders. This platform offers more financing options beyond just QuickBooks loans. Companies can compare different loan products and choose what suits them best.
Using the marketplace is straightforward. After logging into their QuickBooks online account, users can explore available options. They will see details like interest rates and repayment terms for each lender, allowing businesses to find the best fit for their financial needs.
Understanding the eligibility requirements is vital for anyone considering QuickBooks Capital. Meeting these standards can open doors to much-needed financial assistance. Note that this service is only available for QuickBooks customers.
QuickBooks Capital has specific borrower requirements for applicants:
Up-to-Date Information: Maintaining records in QuickBooks is crucial for eligibility. QuickBooks users must keep their financial data organized within the platform. This makes it easier for the QuickBooks team to assess the business’s financial health. Accurate records also help streamline the application process.
business bank account: Applicants must have a business bank account connected to their QuickBooks account. This helps the platform assess financial eligibility. In addition, QuickBooks transfers the loan proceeds to your bank account and automatically debits loan payments from your business bank account.
Invoice Amounts for Line of Credit: To qualify, invoices must be worth at least $258 and not past 30 days due.
Business collateral is not required for a loan through QuickBooks Capital, making it easier for small businesses to access funding. Many owners worry about putting up assets as security, but you can apply for QuickBooks Capital without this concern.
The application process is simple. You can start directly from the QuickBooks Online dashboard. This feature allows users to manage their finances efficiently while applying for loans, saving time and effort when seeking funds for business needs.
After submitting the application, the QuickBooks Capital team may ask for more documents. This could include recent bank statements or financial records. Providing accurate accounting data helps speed up the review process. QuickBooks aims to make borrowing smooth and straightforward.
Small businesses need to meet specific criteria to qualify for a loan. Factors such as revenue and cash flow are essential in determining eligibility. QuickBooks evaluates these factors to ensure they lend responsibly. The amount available varies based on business performance and needs. QuickBooks considers your overall financial health when making decisions.
Applying for QuickBooks won’t affect your personal credit score as it only performs a soft credit pull. However, it may affect your business credit history and business credit score. The company reports to Dun & Bradstreet and Experian’s Small Business Credit Share (SBCS). A positive payment history can improve your business credit, while late payments or defaults can damage your credit.
While the interest rates are high, they’re on par with those of similar online lenders. QuickBooks Capital loans do not have associated fees, reducing overall costs. There are no origination fees, application fees, or repayment penalties. Borrowers can prepay or pay off the loan amount at any time.
QuickBooks Capital is designed for small to medium-sized businesses that already use QuickBooks for financial management. It caters to various industries. Generally, if QuickBooks accounting software is suitable for a sector, then QuickBooks Capital is also suitable.
ISOs and business loan brokers can use QuickBooks Capital as a business loan affiliate program to offer the lending services to their clients. Contact QuickBooks sales for more information.
The entire loan application process is designed to be simple. Most users find it easy to navigate through each step.
Here’s how to apply:
Use your credentials to log into your QuickBooks account. Ensure all your information is up-to-date.
Navigate to Capital: Look for the Capital option on the dashboard. This may be found under the Banking or Tools section. Click on Apply Now. This will take you to the QuickBooks Capital application page. Opt-in to give your consent to share your data with financial partners.
Depending on your business’s financials, you may receive multiple funding offers. Carefully review your personalized funding offers to find the best one for your needs. Ensure you understand the terms and responsibilities before proceeding. Choose your preferred offer and complete the application process.
Once you select an offer and get approved, you may receive the funds in your business bank account in 1-2 business days.
The repayment process begins after you receive your funds. Terms typically range from six to 24 months. Payments are due weekly or monthly, depending on your loan agreement. QuickBooks Capital uses automatic ACH transfers from your linked business bank accounts.
Borrowers can contact QuickBooks Capital to request a different form of payment. Acceptable payments include ACH transfers, wire transfers, and checks.
The financing service does not report to the consumer credit bureaus, which means repayment won’t impact personal credit history. However, as mentioned, it does report to Dun & Bradstreet and Experian’s SBCS. So, it’s crucial to maintain positive payments and avoid late payments to build and maintain good business credit.
QuickBooks Capital term loans typically require a personal guarantee. If your business defaults on the loan, you are personally responsible for the debt. In these cases, the lender could pursue your personal assets to recoup its losses. The line of credit uses your unpaid invoices as collateral.
There is no prepayment penalty. You can pay off the total amount at any time.
Eligible businesses may be able to take out a second term loan if they meet specific financial requirements. However, you cannot have more than two QuickBooks Capital term loans active at the same time.
QuickBooks Capital offers numerous advantages for businesses. One key benefit is the quick application and funding process, allowing companies to access funds promptly for urgent financial needs.
Unlike other funding options, QuickBooks Capital does not have hidden fees or prepayment penalties, helping businesses save money in the long run. The platform also provides tailored funding options based on individual business performance and requirements, ensuring that companies only borrow what they need.
Integration with QuickBooks accounting software simplifies financial management by allowing users to track their accounting data alongside funding options. Competitive rates make loan repayment easier, contributing to better cash flow management.
The straightforward application process appeals to QuickBooks desktop and online users, offering a hassle-free experience for busy business owners. Ultimately, QuickBooks Capital stands out as a reliable funding source that understands and meets businesses’ unique needs.
Potential borrowers should be aware of QuickBooks Capital’s drawbacks. One of the most significant drawbacks is that these financing options are only available to QuickBooks users. Applicants must have used the accounting software consistently for at least six months to qualify.
The potential for high interest rates can pose a financial burden, especially for those with lower credit scores. Additionally, the requirement for a personal guarantee puts personal assets at risk if the business fails, dissuading some from seeking funds.
Loan amounts may be limited compared to other lenders, impacting growth plans and cash flow. QuickBooks Capital also offers limited funding products, potentially leaving businesses needing specific financing options to look elsewhere.
Customer service experiences vary, with some borrowers facing difficulty reaching support when needed. These disadvantages should be carefully considered before pursuing funding through QuickBooks Capital.
Pros:
Cons:
Yes, QuickBooks Capital is a legitimate lending service backed by Intuit Financing Inc. Intuit is a well-known and trustworthy company with a strong reputation in the industry. Many businesses trust their products, like QuickBooks and TurboTax, and this trust also extends to QuickBooks Capital.
It’s difficult to find online reviews that separate QuickBooks Capital from the larger accounting software company. However, of the limited reviews available, the leading service receives mixed reviews.
Positive reviews for QuickBooks Capital often highlight the easy application process, quick funding turnaround, competitive interest rates, and helpful customer support. Customers appreciate the seamless integration with their existing QuickBooks software, making it convenient to manage finances and access capital when needed. Many users also praise the transparency in terms of fees and repayment terms, allowing them to make informed decisions about their borrowing.
Negative reviews for QuickBooks Capital often highlight issues with the application process, such as long wait times for approval and strict eligibility requirements. Customers have expressed frustration with the company’s lack of transparency in the decision-making process and limited communication.
Some users have also reported high interest rates, leading to unexpected costs. Additionally, there have been complaints about customer service, citing unhelpful representatives and difficulty resolving problems.
QuickBooks Capital may deny your application for several reasons. Common issues include low credit scores, insufficient transaction volume, or out-of-date accounting information.
If you receive a denial, it is essential to review the reasons carefully. Understanding why your application was not approved can help you improve future attempts. If the denial letter doesn’t explain the reasons for the denial, or if you need more information, contact QuickBooks Capital directly.
Fortunately, there are many business lenders to consider if QuickBooks Capital doesn’t work for you, either because you don’t use the accounting software or are not eligible for its loans. Many online lenders offer business term loans.
In addition, you could potentially get an unsecured business line of credit with a higher credit limit than what QuickBooks Capital offers. You might also be interested in invoice factoring if you’re trying to solve cash flow gaps from unpaid invoices.
You may also be interested in one of the following small business loans:
QuickBooks Capital offers a quick and convenient solution for business funding if your company already uses the accounting software. However, consider a different lender if you don’t use QuickBooks or need more significant amounts.
Small business owners with urgent funding needs can benefit from QBO financing. More established businesses with good to excellent credit can likely qualify for less costly financing options. Even so, QuickBooks Capital provides a straightforward financing process.
Based on the available information, we rate QuickBooks Capital as a 3.2 out of 5. It can be a viable solution for QuickBooks users seeking modest loan amounts, but the lack of other funding products, limited marketplace options, and requirements hold it back.
Disclaimer: The QuickBooks Capital trademark is owned by Intuit Financing Inc., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Intuit Financing Inc.
Fraud Disclosure:
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