Intuit QuickBooks Adds Invoice Financing, Line of Credit
Intuit QuickBooks has added an invoice financing and line of credit offering to the small business lending options available through its platform.
The new QuickBooks Line of Credit enables small businesses to access funding from $1,000 to $50,000 and tap into the funding when and how they need it, the company said in a Thursday (March 28) press release. The loans are issued by WebBank.
“Expanding lending options for small businesses to include a line of credit gives customers another seamless funding option integrated with the QuickBooks platform, simplifying access to capital so they can focus on what matters most: their business,” David Hahn, vice president of product, QuickBooks Money, said in the release.
The QuickBooks Line of Credit is designed to enable business owners to draw from their available credit limit to support business growth, pay expenses or get an advance on eligible unpaid invoices, according to the release.
Eligible customers can apply for a credit limit within QuickBooks, with no extra documentation required; receive a decision within as few as 30 seconds; and, if approved, have the cash draws or invoices advances deposited in their business bank account in one or two business days, the release said.
There are no origination fees, late fees or prepayment penalties, and small businesses only pay interest on the amount borrowed, per the release. Loans can be repaid in 12 monthly installments. For invoice advances, customer invoice payments can be automatically applied to the business’ loan balance.
The application delivered through QuickBooks is designed to replace the time-consuming process required by banks and investors, which typically involves collecting two or three years of data, according to the release.
“With QuickBooks’ near real-time insights on small business cash flow, customers benefit from the greatervisibility into credit worthiness, especially the most underserved small businesses,” the release said.
PYMNTS Intelligence has found that 90% of small and medium-sized businesses (SMBs) have used at least one type of borrowing in the last year.
When choosing borrowing tools, 75% of SMBs prioritize the accessibility and availability of funds, emphasizing their need for flexible financing solutions, according to “SMB Borrowing Dynamics: Trends, Tools and Decision Drivers,” a PYMNTS Intelligence and U.S. Bank collaboration.
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