QuickBooks Capital Review
- No extra fees
- No prepayment penalty
- The application process is fast and easy
- Website advertising is clear and informative
- Financing isn’t available in some states (Nevada and Alaska)
- Only available to QuickBooks Online users
- No long-term financing options available
- Customer service is inconsistent
QuickBooks is one of the biggest names in accounting software, and QuickBooks Online is regarded by Merchant Maverick (and many others) as the best accounting software for small businesses. QuickBooks Online is an easy-to-use, cloud-based software that offers robust features, strong accounting, and time-saving invoice automations. To make a great product even better, QuickBooks Online launched a built-in lending feature called QuickBooks Capital.
QuickBooks Capital is a lending service available to QuickBooks Online users. Operating much like PayPal Working Capital or Shopify Capital, QuickBooks Capital uses your QuickBooks Online information to determine whether you’re eligible for a loan; in fact, it speeds up the application process by automatically filling in your existing information.
QuickBooks Capital offers installment loans (also commonly known as term loans) with term lengths of six months, nine months, or 12 months. That means you’ll have to pay your loans back fairly quickly. With APRs of 12% to 32%, QuickBooks Capital’s rates are on par with those of other online lenders, but there are no closing fees or origination fees — a definite advantage over the competition.
QuickBooks Capital is still relatively young, having been launched in December of 2017, so the verdict is still out on this form of financing, especially in terms of customer feedback. That said, QuickBooks Capital could be an excellent source of fast funds, especially if you have a seasonal business or a young business that may not be approved elsewhere.
Keep reading to see if QuickBooks Capital is right for your business!
Table of Contents
QuickBooks offers installment loans (also commonly called term loans). These are loans that grant the borrower a lump sum of cash. In exchange, the borrower has to repay the amount borrowed, called the principal, plus interest within an agreed timeframe. Payments are made on a regular schedule called installments.
These are the qualifications you must meet to be eligible for a QuickBooks Capital loan:
|Time In Business:||6 months of activity on a QuickBooks account|
|Personal Credit Score:||620|
In addition, you must:
- Be an active QuickBooks Online user
- Have primary business bank accounts connected to QuickBooks Online
- Have had no bankruptcies in the past two years
QuickBooks Capital also enforces a prohibited industry list. This list is not available online, but you can contact customer support directly to see if your industry is prohibited (see our Customer Service & Technical Support section for contact options).
QuickBooks Capital is available to applicants in 48 states. Residents of Alaska and Nevada are not eligible to apply, presumably for regulatory reasons.
There is no specific requirement for how long a business must be running before being eligible for a QuickBooks Capital loan. However, a clear picture of your business is needed, so at least six months of QuickBooks activity is required to qualify.
Terms & Fees
These are the terms and fees for QuickBooks Capital:
|Term Length:||6-12 months|
QuickBooks Capital offers installment loans with six-month, nine-month, and 12-month term lengths. Interest rates vary, depending on the length of the loan, your credit history, and the loan amount. The dollar amount your business is eligible for will depend on your business financials, though the borrowing range is anywhere from $5,000 to $100,000. QuickBooks Capital does not require collateral but does require a personal guarantee: a promise that you personally will pay the business loan back should your business declare bankruptcy.
Since QuickBooks Capital offers installment loans, you can save money on interest costs by paying off your loan early. There are no prepayment penalties. Payments are debited weekly or monthly from your business bank account using ACH payments. You can use QuickBooks Capital’s loan calculator to get an idea of how much your payments might be.
QuickBooks Capital loans are originated directly through Intuit, QuickBooks’ parent company.
You can kick off the application process by visiting the Capital tab in QuickBooks. QuickBooks Capital uses information from QuickBooks Online to autofill the majority of the application. All you have to do is verify that the information is correct and fill in any missing data. Most often, you won’t need to provide any additional documentation. You will typically hear back from QuickBooks Capital in two to three days.
QuickBooks Capital will only do a soft credit check, which won’t affect your credit score. However, there may be a small impact on your business credit history when you apply for a loan.
If you are approved, you can choose from a range of borrowing amounts. After that, it will usually take two days for funds to be deposited into your bank account.
If you are not approved by QuickBooks Capital, or you’re looking for a different type of loan (such as a line of credit or an SBA loan), you can check the QuickBooks Capital marketplace to see other lending partners that integrate with your QuickBooks Online account.
Sales & Advertising Transparency
QuickBooks Capital has a well-designed website with many details about its financing service. You can learn pretty much everything you need to know about the service on the QuickBooks Capital website, although you may have to click around the various FAQs to find the info you’re looking for. QuickBooks Capital is only available to QuickBooks Online users, and you must log in to your QuickBooks Online account to apply.
Customer Service & Technical Support
QuickBooks Capital offers FAQs and phone support. There is also a live chat feature that can be accessed directly from within QuickBooks Online.
Customer service has never been QuickBooks’ strong suit. The company is notorious for long wait times, and representatives often vary in knowledge and helpfulness. Luckily, QuickBooks Capital’s phone support team has much shorter wait times and more helpful representatives. Time will tell if this branch of QuickBooks breaks the chain of poor customer support or not.
QuickBooks also has an extensive community forum where you may find a few questions regarding QuickBooks Capital.
Negative Reviews & Complaints
Intuit has an A+ rating with BBB, and a total of 1,405 complaints closed within the last three years, but the site doesn’t isolate complaints about QuickBooks Capital. In fact, very few of the complaints address QuickBooks Capital at all and instead are addressing issues with QuickBooks and TurboTax.
QuickBooks Capital might not be right for you:
- If you’re looking for more extended term lengths
- If you need to borrow more than $100,000
- If you aren’t a regular QuickBooks Online user
Positive Reviews & Testimonials
You can find customer stories on the QuickBooks Capital website. Here are some of the reasons these users like QuickBooks Capital:
- It’s easy to apply and get approved
- Funds are delivered quickly
- Provides a good business growth opportunity
Since there are so few customer reviews out there, we’d love to hear from you! Have you accepted a QuickBooks Capital offer? What was your experience like? Leave a message in the comments below.
QuickBooks Capital is a good option for existing QuickBooks Online users looking for an easy application and fast funds. QuickBooks Capital loans are ideal for inventory purchasing and working capital but may not be ideal for long-term needs, such as business expansion.
QuickBooks Capital’s rates are competitive with other lenders. If you’re a QuickBooks Online user looking for a short-term loan, QuickBooks Capital is definitely worth considering. However, if you’re looking for a loan with more extended term lengths or larger borrowing amounts, you’ll need to look elsewhere. Check out some of our other top-rated lending providers to explore all of your financing options.