If you use QuickBooks, you now have easier and cheaper access to online small-business loans through a new Intuit and OnDeck initiative.
The companies on Thursday announced they had partnered to create a new $100 million lending fund for small businesses that use Intuit QuickBooks.
The new Quickbooks Financing Line of Credit will target established small businesses with strong credit. As a result, the financing would also generally be cheaper — 9% to 20% APR — than OnDeck’s traditional lines of credit and small-business loans, whose average annual percentage rate is 47%.
OnDeck has typically been a good option for small-business owners with bad credit and those who need fast cash. But the lender also wants to extend capital to a wide range of small-business borrowers. OnDeck Chief Executive Noah Breslow told NerdWallet in a recent interview that the company has “continued to move up market” since its founding.
How to apply for QuickBooks financing
Here’s how it works: Go to the QuickBooks Financing page to get started.
Previously, this was simply a referral page where you’d find different financing options, including OnDeck’s. (Read our OnDeck review to learn more about the lender’s small-business loans, terms and cost. To compare a range of options, check out our small-business loans page.)
With the new partnership, the process will be faster and more seamless.
OnDeck will be able to access your QuickBooks information rapidly and let you know within a day if your loan application is approved, says Intuit spokesman Steve Sharpe.
The decision-making still lies with OnDeck, he tells NerdWallet. But with fast access to your QuickBooks data, OnDeck should immediately get a sense of the strength of your business and make a decision more quickly.
Would you qualify?
Sharpe says this financing option is best suited for the “most creditworthy and most established businesses” using the QuickBooks platform. These include small businesses that:
- Have been operation for more than two years.
- Have been using QuickBooks regularly and have a “robust set of data” that paint a clear picture of the small business’ finances.
The APR range of 9% to 20% is lower than that of other OnDeck products, which range from 9% to 99% on term loans and 13% to 40% on lines of credit.
“It’s the combination of low rates and the speed that’s the magic of this offer,” Sharpe tells NerdWallet.
He also says Intuit is “making a material contribution” to the small-business-loan fund, though the company is not disclosing the amount.
OnDeck, one of several online small-business lenders, is known for the speed and convenience of its application process. OnDeck loans, however, can be costlier than other financing options, especially traditional bank loans or SBA loans.
To compare OnDeck to other alternative lenders, use NerdWallet’s small-business loans page. We gauged lender trustworthiness and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.
Benjamin Pimentel is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @benpimentel
Image via iStock.
This post was updated April 14, 2017. It was originally published Sept. 17, 2015.