Intuit launched QuickBooks Capital, a loan product aimed at small businesses, and in particular new small businesses. The product joins a growing pool of small business loan options accountants can offer their clients.
The lending solution is currently funded by small capital from Intuit, but the company is exploring other models for funding small business loans, according to Rania Succar, head of QuickBooks Capital, at QuickBooks Connect 2017.
To power QuickBooks Capital, Intuit created a credit model built from 26 billion data points collected from small businesses that already use QuickBooks, Succar said. “Because of the trust small businesses place in QuickBooks, we have access to the most powerful small business data repository,” she explained.
Succar said QuickBooks Capital “gets to the heart of one of the biggest unsolved problems facing a small business, which is working capital. If you’re a small business, you may have created an opportunity for yourself. amazing to get your product into Whole Foods or Ace Hardware, but there’s a catch: it takes $25,000 in working capital to pay for materials and packaging, which you don’t have. a lot of companies don’t pursue these opportunities”
Intuit is particularly focused on helping new businesses, Sasan Goodarzi, executive vice president and general manager of Intuit’s Small Business Group, told the conference because of their high failure rate. According to data from the Federal Reserve, 70% of new small businesses need financing to grow, but only 23% get the financing they need – and more than half of small businesses fail within the first five years. mainly due to a lack of cash.
Despite all of this, small businesses are the main drivers of the economy, which is why Intuit wants to focus on their success, Goodarzi said.