- The ability for small businesses to use their own QuickBooks data to get full credit for their business performance, historical and ongoing.
- A streamlined and transparent application process that is embedded within QuickBooks so that small businesses can access funding right inside their daily workflow, just as they need it.
- New opportunities for small business growth -- 60 percent of QuickBooks Capital customers would likely not get a loan elsewhere, and 46 percent have never even applied for a loan before.
Giving Businesses Credit For Their Past, Capital For Their FuturePowered by more than 26 billion QuickBooks data points and third party data sources, the QuickBooks Capital credit model provides a powerful view of a small business' borrowing capacity. Small businesses are empowered to use their own QuickBooks data to provide an automated, comprehensive view of what's happening with their business, including:
- Free cash flow: QuickBooks provides a comprehensive picture of cash flow because in addition to the core accounting app including payroll and payments, small businesses also connect their bank accounts and credit cards, as well as other third party apps to get a full picture of their business.
- Future income: QuickBooks data allows small businesses to get credit for open invoices, work in progress, total inventory, and ongoing projects.
- Relative performance: Because there are more than 2.3M QuickBooks users, QuickBooks makes it easy to understand how a small business stacks up against others like them.
- Trends: QuickBooks makes it easy to understand a small business within the context of individual business trends (seasonality and growth), as well as market trends.
QuickBooks Capital removes all of the friction from the application process. Small businesses that qualify for the offering can access funds from a new "Capital" tab right inside QuickBooks, where they can always see how much they are eligible to apply for based on the latest developments in their business. The working capital loans currently offered range up to $35,000, with a term between three and six months. The product also emphasizes transparency by always displaying annual percentage rates (APRs) to borrowers. Other than interest cost, there are no origination fees or prepayment penalties.Meeting the Needs of New Small Businesses QuickBooks Capital is already making a difference for hundreds of small businesses that were invited to use the product through a private beta.
- Underserved businesses are now able to access capital: 60 percent of QuickBooks Capital customers would likely not get a loan elsewhere.
- Borrowing is no longer intimidating: 46 percent of QuickBooks Capital customers had never even applied for a loan before.
- New businesses are using the capital to invest in growth opportunities: 90 percent of QuickBooks Capital customers say the loan helped their business grow. The top five uses are: (1) opportunity for additional profit, (2) inventory or raw material purchase, (3) making payroll, (4) equipment purchase, and (5) marketing.
- There is near universal satisfaction with the product: 99 percent of borrowers were satisfied with the QuickBooks Capital experience.
Even though they have become quite successful -- including selling their skis internationally -- they still struggled to get the financing they needed to expand."We've been turned down by lender after lender because we were making money just three months out of the year." This year, they had the opportunity to build a Biergarten in the back of their ski shop -- it was a great way to bring the community together, while also solving their seasonality problems. "When we logged into QuickBooks, we saw that financing was just available to us. And that's what actually enabled us to put the Biergarten together on such short notice. It was conveniently there at the right time. The nicest part of the experience is that the funding was directly linked to our finances. There was no discussion over 'How are you guys doing? Can you support this?' It was like, 'We understand where you're at. We understand what you've been doing and where you'll go with it.' QuickBooks Capital provided the solution for us to get out of the seasonal business." Have a look at this video of RMU Outdoors. Customer Stories and Quotes -- True Love Honey Anthony Tubbiolo founded True Love Honey with $212 of savings eight years ago and spent the first four years selling honey on the side of the road. He has worked diligently during this time to create growth opportunities for his business, including getting his honey into stores, now with more than 150 commercial accounts. He had tried to get a line of credit at least three times from a traditional lender and had been rejected each time. Based on the strength of his business performance, QuickBooks Capital offered his business a $10,000 loan which he used to stock up on inventory as well as to build his business credit for the future.
"We had found a beekeeper who had a couple of drums of honey that we wanted, and we didn't have the money for it, and so the loan allowed us to purchase that," explained Anthony. "That was a nice big help. You need working capital when you're talking about growth, and needing to buy extra inventory so that you can offer more to the stores, and we're not there yet. QuickBooks is in there with your business. QuickBooks Capital sees everything that I see, and I don't have to convince anybody. They simply look at it, and decide that they want to invest in your business, and if they want to, I want to."Additional Information For additional information, please look at:
- An explanation of the economic impact of QuickBooks Capital
- A video highlighting how the product works
- For QuickBooks customers - check to see if you are eligible