QuickBooks Capital Continues Momentum in Delivering Innovative Capital Options for Small Business Lending
October 17 2018 - 8:30AM
Business Wire
QuickBooks Capital Lends $140M in Loans to
QuickBooks Small Businesses in First Year
Just one year post-launch, Intuit Inc. (Nasdaq: INTU) today
shared the continued momentum of QuickBooks Capital, an innovative
lending product that helps millions of QuickBooks small businesses
get access to the capital they struggle to get elsewhere. Since
launching, Intuit found 60 percent of QuickBooks Capital customers
would likely not get a loan elsewhere, and 46 percent have never
applied for a loan before. With these findings, QuickBooks Capital
has funded $140M in cumulative loans to worthy small businesses by
leveraging leading edge data science to create a breakthrough
credit model. Intuit also announced increased lending limits and
access to a business’ credit core to help small businesses gain a
better understanding and better manage their cash flow.
Working capital loans through products like QuickBooks Capital
are especially important to underserved, young small businesses who
often struggle to get access to traditional loans. Other lenders
often rely on manual underwriting processes, which make it
unprofitable for the companies providing the loan but more
importantly often make the young small business under two years
less eligible to apply for the loan. In fact, according to a recent
Federal Reserve study, 70 percent of businesses younger than five
years need funding to grow, but only 23 percent of them get the
funds they need. Additionally, 90 percent of QuickBooks Capital
customers said the funds they received helped them grow their
business, and 41 percent that without a loan from QuickBooks
Capital, they would not have expanded or improved their
business.
Increased Loan Amount and Free Access to Business Credit
Score and Report
When Intuit initially announced QuickBooks Capital in 2017, the
product offered loans up to $35,000 for small businesses. Today,
Intuit shared that QuickBooks Capital now offers loans of up to
$100,000 to small businesses up to twelve month terms.
Additionally, QuickBooks Online customers can now access their free
business credit score and credit report through a new partnership
with Dun & Bradstreet, the global leader in commercial data and
analytics. “It was great to find my business credit score right in
QuickBooks. Having utilized QuickBooks Capital, the score helped me
understand how I can better manage my business,” said Itohan Ellis,
Owner and Principal Designer of Red Orchid Designs.
By allowing eligible small businesses access their free Dun
& Bradstreet Business Credit Score, Intuit hopes to help
QuickBooks customers gain greater access and insight into their
small business’ financial standing, empowering them to have a
better handle on their finances and management of cash flow as they
grow their business.
“When we first began working on QuickBooks Capital, we knew that
we were uniquely equipped to solve cash flow problems that so many
small business owners deal with, especially when they’re just
starting out,” said Luke Voiles, Director of QuickBooks Capital at
Intuit. “QuickBooks Capital invests in QuickBooks customers, and to
help them make their data work for them. We lend off the strength
of their books to power prosperity and are proud of the $140M in
cumulative loans we have funded in just one year. In fact, 90
percent of customers said our loan had a direct impact on the
growth of their business and we are honored to champion the small
businesses we serve.”
The QuickBooks Capital Experience
The experience of QuickBooks Capital customers has been
overwhelming positive, with 96 percent of customers saying they
were “surprised and delighted” by the product. QuickBooks Capital
removes the friction from the traditional loan application process
because it’s a seamless part of the QuickBooks experience. In fact,
99% of QuickBooks Capital customers said it was “easy to apply”
because Capital already had the relevant information, and 97
percent said they trusted QuickBooks with their financial
information. The product also emphasizes transparency by always
displaying annual percentage rates (APRs) and other metrics to
borrowers unlike many other lenders. Other than interest cost,
there are no origination fees or prepayment penalties, and 98% of
customers agreed, saying “Capital showed them the total cost of
funding upfront with no surprises.” Additionally, the majority of
QuickBooks Capital users (84 percent) plan to apply for another
loan from QuickBooks Capital in the future.
QuickBooks Capital Customers
Since launching, QuickBooks Capital primarily serves three key
segments of small businesses – young businesses less than five
years old, rural businesses and microbusinesses. The majority of
QuickBooks Capital customers are growing businesses that are
operating at a profit (67 percent) with 70 percent having $500k or
less in annual revenue. Customers average 2.9 traditional, full
time employees, and 78 percent of customers were microbusinesses,
or businesses with fewer than four full-time employees. Overall, 65
percent of QuickBooks Capital customers were less than five years
old and 28 percent of QuickBooks Capital funding went to businesses
in rural areas.
Customer Case Study
“My company, The Butchers Guild relies on several different
revenue streams and there was a stretch of time this past year
where we really needed capital,” said Tia Harrison, Co-founder and
President, The Butchers Guild. “The QuickBooks Capital loan popped
up when I was working in QuickBooks and it was absolute perfection,
it felt like a miracle. Applying was simple, fast, and the
repayments are automatically deducted weekly so repaying the loan
feels painless! I would recommend QuickBooks Capital to any
business owner; I wish this funding source was available
sooner.”
About Intuit
Intuit’s mission is to Power Prosperity Around the World. Our
global products and platforms, including TurboTax, QuickBooks, Mint
and Turbo, are designed to empower consumers, self-employed and
small businesses to improve their financial lives, finding them
more money with the least amount of work, while giving them
complete confidence in their actions and decisions. Our innovative
ecosystem of financial management solutions serves approximately 50
million customers worldwide, unleashing the power of many for the
prosperity of one. Please visit us for the latest news and in-depth
information about Intuit and its brands and find us on social.
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Intuit Inc.Danielle Ernst,
650-944-2391Danielle_Ernst@intuit.comorAccess CommunicationsJen
Garcia, 415-844-6244Jeng@accesstheagency.com
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