I recently got an email from Intuit QuickBooks asking me if I wanted a loan. Loans range from $1,500 to $200,000 and a decision is made by the next day, often times. QuickBooks has more “true” business info than your bank does and can make a decision fast.
It’s important to have access to financing options that can help you grow and manage your business. One such option is QuickBooks, the popular accounting software that offers small business loans. However, before you decide to take out a loan from QuickBooks, it’s important to weigh the pros and cons and consider all your options. In this post, we’ll explore whether getting a loan from QuickBooks is the right fit for your small business needs.
QuickBooks gives these three reasons to consider it
Fast & flexible: After accepting the offer, approved loans typically fund in 1-2 business days.
Simple: Save time—apply for and manage funding right from your QuickBooks account.
No fees: Know the total cost of funding up front. No fees, prepayment penalties, or hidden charges.
Read the Terms and Conditions
Read the terms of the loan Before you apply for a loan with QuickBooks, it’s important to carefully read and understand the terms of the loan. Make sure you know the interest rate, fees, and repayment period. Be aware of any penalties for early repayment or late payments. It’s also important to be clear about how much you need and how long you need it for. This will help you make an informed decision and avoid any surprises down the line.
Compare other options QuickBooks isn’t the only financing option for small business owners. You can also consider traditional options such as banks or credit cards. It’s important to compare the interest rates, fees, and repayment terms of these options before making a decision. You may find that a different option is more favorable for your business needs.
Do you need the loan?
Do you really need the loan Before taking out a loan, it’s important to ask yourself whether you really need it. Consider other alternatives such as cutting expenses, increasing revenue, or exploring other financing options. A loan can be helpful, but it can also come with added stress and financial burden. Be sure to evaluate your need for a loan before making a decision.
Benefits of QuickBooks loans If you do decide to take out a loan from QuickBooks, there are several benefits. One advantage is the easy application process – you can apply online and receive a decision in minutes. The funds are also deposited into your bank account quickly, usually within 1-2 business days. Additionally, QuickBooks loans can be a good option for businesses with lower credit scores, as they may be more lenient in their lending requirements.
What are the risks?
Consider the risks Like any financing option, loans from QuickBooks come with risks that you should be aware of. Repayment can be a challenge if you’re not prepared and could negatively impact your credit score. You also need to ensure you have a solid repayment plan in place before applying for a loan. It’s important to consider the risks before deciding on a QuickBooks loan.
In conclusion, a QuickBooks loan can be a viable option for small business owners looking for financing. However, it’s important to read and understand the loan terms, compare other options, evaluate your need for a loan, and consider the risks. With careful consideration and planning, a QuickBooks loan can be a helpful tool for your small business growth.
Here’s other non-bank funding options for small business owners
- Kabbage: Kabbage offers flexible lines of credit to small businesses. Their application process is straightforward, with decisions typically made in minutes. They provide a line of credit that you can draw from as you need, paying only for what you use.
- Fundbox: Fundbox provides small businesses with access to credit through their invoices. They offer invoice financing, which lets you advance the outstanding amount on customer invoices. This can be especially useful for businesses with long invoice cycles.
- OnDeck: OnDeck provides term loans and lines of credit to small businesses. They have a quick application process, and funds can be received as soon as the same day.
- Lending Club: Lending Club is a peer-to-peer lending platform that connects investors with small businesses in need of financing. They offer business loans and lines of credit.
- BlueVine: BlueVine offers invoice factoring, line of credit, and term loans to small businesses. They are known for their quick application and approval process, and businesses can access funds in as little as a few hours.
- Prosper: Prosper is a peer-to-peer lending platform that offers personal loans which can be used for business purposes. This can be a good option for sole proprietors or new businesses that are not yet eligible for traditional business loans.