As a business owner, you’re always looking for ways to grow and expand your company. But sometimes, traditional loans can be tough to qualify for. That’s where QuickBooks Capital comes in.
QuickBooks Capital is a loan program offered by Intuit (the company behind QuickBooks) that’s specifically designed for small businesses. In this QuickBooks Capital review, we’ll take a look at how the program works, what you need to qualify, and whether it’s right for your business.
What is QuickBooks Capital?
QuickBooks Capital is a small business lending program offered by Intuit. The program offers loans of up to $250,000 with terms of up to three years.
To qualify for a QuickBooks Capital loan, you must be an existing QuickBooks Online customer in good standing. You also need to have a minimum annual revenue of $50,000 and be in business for at least one year.
Once you’re approved for a loan, the funds will be deposited into your bank account within two business days. There are no origination fees or prepayment penalties.
How Does QuickBooks Capital Work?
QuickBooks Capital uses data from your QuickBooks Online account to assess your creditworthiness. This data includes information like your revenue, expenses, and number of customers.
Based on this data, QuickBooks Capital will give you a loan offer with terms and conditions that are specific to your business. If you accept the offer, the funds will be deposited into your bank account within two business days.
To repay your QuickBooks Capital loan, you can choose to have payments automatically deducted from your bank account each month. Or, you can log into your QuickBooks Online account and make manual payments.
What Are the Benefits of QuickBooks Capital?
There are several benefits of using QuickBooks Capital to finance your small business:
- Quick and easy application process: Applying for a QuickBooks Capital loan is quick and easy. You can apply directly from your QuickBooks Online account.
- No collateral required: QuickBooks Capital loans are unsecured, which means you don’t need to put up any collateral to qualify.
- Fast funding: If you’re approved for a loan, the funds will be deposited into your bank account within two business days.
- Flexible repayment terms: QuickBooks Capital offers repayment terms of up to three years. This gives you flexibility in how you repay the loan.
- No prepayment penalties: There are no prepayment penalties if you choose to pay off your loan early.
What Are the Drawbacks of QuickBooks Capital?
There are a few potential drawbacks to using QuickBooks Capital to finance your small business:
- Limited loan amounts: QuickBooks Capital loans are limited to $250,000. If you need more funding than that, you’ll need to look elsewhere.
- High interest rates: QuickBooks Capital loans have relatively high interest rates. The APR on a QuickBooks Capital loan ranges from 9.99% to 29.99%.
- Short repayment terms: QuickBooks Capital offers repayment terms of up to three years. This is shorter than what’s offered by some other lenders.
- Requires QuickBooks Online: To qualify for a QuickBooks Capital loan, you must be an existing QuickBooks Online customer. If you’re not using QuickBooks Online, this loan program isn’t for you.
Should You Use QuickBooks Capital?
QuickBooks Capital is a good option if you’re an existing QuickBooks Online customer and you need a small business loan. The application process is quick and easy, and you can get funding within two business days.
However, QuickBooks Capital loans have relatively high interest rates and short repayment terms. If you’re looking for a long-term loan with low interest rates, you may want to consider other financing options.