A stellar credit score was once the only way to obtain business financing. And, requirements for qualifying for a business loan have only become even more stringent over the last five years. However, thanks to Kabbage, a growing number of online, and now offline businesses are getting working capital from QuickBooks account data.
How to Get a Business Loan with Quickbooks
Kabbage, the provider of alternative financing for both online and brick and mortar stores is now leveraging QuickBooks data to approve businesses for loans. Thanks to an integration with QuickBooks, Intuit’s small business accounting software, Kabbage is able to provide many new business owners with working capital that can be used for purchasing inventory, equipment or for hiring help. It is Kabbage’s goal to be able to underwrite and provide capital to all small businesses.
Getting a loan from QuickBooks account data is different than applying for a traditional bank loan. Kabbage doesn’t solely rely on traditional credit scores and models for making a decision on whether to advance funds. Rather, it uses real-time data from QuickBooks, along with other online sources such as eBay, UPS, and social media channels to determine whether a business is credit-worthy.
The application process that Kabbage uses for getting working capital from QuickBooks account data is much quicker than working with a bank, too. Utilizing real-time data accessed through Intuit’s partner platform, Kabbage can quickly make a decision and offer lines of credit in amounts ranging from $500 to $100,000. Fees for Kabbage loans vary depending on a variety of factors.
How Using More Loan Data Helps Small Businesses
Now that Kabbage is using this data from QuickBooks, they have the ability to offer lines of credit to offline businesses. This is because they have a better data picture of their customers that don’t have active online sales.
Data that is reviewed to determine the amount to be offered includes buyer feedback ratings, customer traffic, and inventory. Credit scores are checked, too but, they are only one factor used to determine creditworthiness. Once approved for getting a loan from QuickBooks account data and the other sources of information required, funds can be transferred into a business’s PayPal account in just minutes.
This funding is helping businesses in a variety of interesting ways. For many businesses, “Kabbage Kash” can be a great way to invest in merchandise, hire additional staff, or purchase equipment like computers. It can also be used for launching marketing initiatives and expanding into new types of products or services.
Why Alternative Financing Could be Right for You
Because Kabbage offers alternative business loans and not traditional loans, there is no accruing interest. The cost for the business loan typically ranges from two to 10 percent, based on a business’s monthly revenue and Kabbage score.
Business owners who are getting a loan from QuickBooks account information are not charged hidden fees unlike those doled out by many traditional banks. Return amounts can be paid in equal monthly transfers from a payment account, and the funds can be paid back early to save on costs. There is no additional fee for paying back funds early.
With now over 4 million small businesses using QuickBooks, Kabbage expects to substantially increase the number of loans it is offering.