QuickBooks Capital Review
Need Help Finding a Loan?
- Date Established
- December 2017
- Mountain View, CA
- Easy application process
- No origination fee
- No prepayment penalty
- Only available to QuickBooks Online users
- Limited support materials
QuickBooks is one of the biggest names in accounting software, and QuickBooks Online (see our review) 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 just launched a brand new 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 three months or six months. This means you’ll have to pay your loans back fairly quickly. With APRs of 10% to 26%, 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.
Since QuickBooks Capital launched very recently, in December of 2017, the verdict is still out on this form of financing, especially in terms of customer feedback. That said, based on the details we have, QuickBooks Capital could be an excellent source of fast funds, especially if you’re a seasonal business or young business who 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 the qualifications you must meet to be eligible for a QuickBooks Capital loan:
|Time In Business:||N/A|
|Personal Credit Score:||580|
In addition, you must:
- Be an active QuickBooks Online user
- 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).
There is no specific requirement for how long a business must be running before being eligible for QuickBooks Capital loan.
Be aware that you do not apply for a loan from QuickBooks Capital; instead, you will receive an email or notification within your QuickBooks Online software if you are eligible for a loan. Read our Application Process section below for more information.
Terms & Fees
These are the terms and fees for QuickBooks Capital:
|Borrowing amount:||$1K – $35K|
|Term length:||3 – 6 months|
|Interest rate||1.25% – 6.87%|
|APR:||10% – 26%|
QuickBooks Capital offers installment loans with 3-month or 6-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 personally eligible for will depend on your business financials, though the borrowing range is anywhere from $1,000 to $35,000. 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 from your business bank account using ACH payments. You can use QuickBooks Capital’s loan calculator to get an idea of how much your weekly payments might be.
An important thing to remember about QuickBooks Capital is that the interest rates are not annualized (the company only offers 3-month and 6-month loans). This means, to accurately compare a QuickBooks Capital loan offer with other offers, you will need to look at the APR rather than the interest rate.
If you are eligible for a QuickBooks Capital loan, you will receive an email or a notification under your Capital tab in QuickBooks. Once you receive this notification, the application process is simple.
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.
If you are an LLC, LLP, limited partnership, or corporation, QuickBooks Capital will only do a soft credit check, which won’t affect your credit score. If you are a sole proprietor or a general partnership, QuickBooks Capital will do a hard credit check of your personal credit history, which will have a small effect on your score.
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 are looking for a different type of loan (like 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 their financing service. You can learn pretty much everything you need to know about the service on their site. QuickBooks Capital is only available to QuickBooks Online users, and eligible users will be notified (see the Application Process section for more details).
Customer Service & Technical Support
QuickBooks Capital offers FAQs and phone support (call 844-848-0430). 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
Since QuickBooks Capital was only launched in December of 2017, it’s almost impossible to find reviews on this service. Intuit has a total of 61 negative reviews on BBB, but there are no negative complaints specifically about QuickBooks Capital (the majority of the complaints regard QuickBooks and Turbo Tax).
QuickBooks Capital might not be right for you:
- If you’re looking for longer term-lengths
- If you need to borrow more than $35,000
Positive Reviews & Testimonials
Similarly, there are very few positive reviews of QuickBooks Capital at this point in time. Intuit receives an A+ rating on BBB, and there are three 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 like business expansion.
It’s important to remember that QuickBooks Capital is a little different from other installment loans in that their interest rates (of 1.25% – 6.87%) are not annualized. In order to compare your QuickBooks Capital offer to offers from other lenders, you’ll need to use the APR instead. Read our complete Merchant’s Guide To Installment Loans to learn more about using APR and to understand if you’re getting a good deal.
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 longer 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.
|Lender||Borrowing Amount||Term||Req. Time in Business||Min. Credit Score||Next Steps|
|$5K - $500K||3 - 36 months||x1.003 - x1.04/mo||12 months||600||Apply Now|
|$5K - $500K||13 - 52 weeks||x1.029 - x1.1872||9 months||550||Apply Now|
|$2K - $5M||Varies||As low as 2%||6 months||550||Apply Now|
|$20K - $500K||1 - 4 years||7.99% - 29.99% APR||2 years||660||Apply Now|