Intuit Unveils New SME Lending Product, QuickBooks Capital
EXCLUSIVE – Business software provider Intuit today launched its first loan product through QuickBooks called QuickBooks Capital.
Users will be able to access the product in the homepage of their existing accounts with QuickBooks. These products are short term working capital loans ranging from $5,000 to $35,000 over a period of three to six months. The average loan amount is $15,000, according to Raina Succar, head of QuickBooks Capital at Intuit. The loan is aimed towards companies five years or younger.
The goal of this new product is to help young small businesses across the country gain access to short term loans, according to Succar. With this launch, Intuit joins PayPal, Square and others leveraging their customer data to offer capital.
“With the data we have, we could see that about 60% of our customers are not likely get the loan elsewhere,” Succar told Bank Innovation. “The purpose of the product is to serve that underserved section. They can use that money for things like investing, marketing, buying inventory or raw materials, payroll, or growth opportunities.”
To apply for a loan with QuickBooks Capital, a user can just click on the tap called “Capital” in their homepage. The loan form will already be prepopulated with the applicant’s information that QuickBooks already has on file.
“We want to change the game for small businesses,” Succar said. “Not just by providing loans to this market but also by removing all the friction associated with the application process.”
The applicant can always see how much they are eligible for before they apply. With the help of a loan calculator on the home page, the applicant is able to see the interest charged and the monthly repayment amount. There is always the annual percentage rates (APRs) displayed on the page as well. Once the applicant agrees to the loan amount, the money will be transferred to their account within two business days.
There are no origination fees or prepayment penalty fees, just the interest rate, the company said. QuickBooks has been piloting the product since February this year. It is currently live in 43 states, and ultimately aims to make it to all 50 states.
“The concept is at the heart of a broader innovation plan that QuickBooks has to be at forefront of powering small businesses,” Succar said.
Succar, of course, declined to disclose details of that plan.
