Working Capital Management

QuickBooks Capital Marketplace: What Is it and How Does it Work?

As any small business owner knows, having access to working capital is key, and can often make the difference between being a successful business and one that shutters. But, getting access to funding your business needs isn’t always easy. There’s qualification requirements you’ll need to meet, as well as often lengthy application processes. And if you’re a newer business, getting the cash you need to cover off everyday expenses and take on growth opportunities can be especially challenging. 

The good news is that if your business accounting is run through the popular accounting software QuickBooks, you have access to the QuickBooks Capital Marketplace

What Is the QuickBooks Capital Marketplace?

The QuickBooks Capital Marketplace is basically a one-stop shop for small businesses looking to access their available funding sources, offering a range of funding options including short-term funding, medium-term loans, and more. A lending marketplace, if you will. 

How Does the QuickBooks Capital Marketplace Work?

The QuickBooks Capital Marketplace works by letting you find financing options for your business within the QuickBooks platform. The system leverages information from your QuickBooks account in order to find you the best funding options from various QuickBooks partners. 

You can apply using your QuickBooks data – the system pre-fills any request with information from your QuickBooks account, in just a matter of minutes. Using that information, QuickBooks shows you customized offers for your business from multiple financing partners. You can then choose the option that’s best for your unique business situation, and complete the application process through the partner. With your permission, QuickBooks forwards your information for you. Once confirmation of funding or loan approvals are made, financing partners will deposit funds directly into your bank account.

Common reasons a business leverages additional cash flow sources include:

  • Business expansion
  • Cover everyday expenses
  • Less reliance on personal loans
  • Unblock slow receivables
  • Ease seasonal strain
  • Having access to consistent cash flow

Quickbooks Marketplace Borrower Requirements

QuickBooks Marketplace helps you determine if you’re eligible (and for how much) quickly. The decision to extend an offer for financing, and the terms of any such offers, depend on the credit and underwriting criteria used by a given financing partner. 

Some general factors that a funding partner will want to see when considering business financing include: 

  • Number of years in business
  • Annual business revenue, revenue history, revenue per month
  • Ability to repay
  • If a personal guarantee is required, personal credit score and history
  • Business and/or personal bankruptcies and other negative events (such as late payments, previous defaults, or tax liens)

Quickbooks Capital Marketplace Costs

There is no cost to use the Quickbooks Capital Marketplace and to compare your financing offers between lending services or partners. The cost of whatever funding offer you go with will depend on the loan term lengths and various conditions set by that particular business lender partner. 

If you opt for a short-term loan through the QuickBooks Capital loan program, the costs are pretty standard. The pricing details for QuickBooks Capital Marketplace loan amounts include an APR between 9.99-34%, which is influenced by your business history and credit profile, as well as the terms of the funding. There are no other fees associated with QuickBooks financing aside from the interest – no maintenance fee, origination fee, prepayment penalties, closing fee etc.

QuickBooks Capital Application Process

Seeing available funding offers within the QuickBooks Capital Marketplace is fast. The entire process takes just a few minutes, unlike complicated business loan applications or line of credit applications at a traditional bank. The seamless integration of your QuickBooks account with QuickBooks Capital Marketplace makes the application process quick and easy. To apply for a cash flow boost via the QuickBooks Capital Marketplace, you’ll: 

Step 1. Apply using your QuickBooks data. Go to the Capital tab in your QuickBooks Online dashboard. QuickBooks pre-fills your request with information from your QuickBooks account. The process takes just a few minutes.

Step 2. Compare available offers. You’ll be able to easily compare customized offers for your business from multiple financing services – including FundThrough.

Step 3. Select your offer. Choose the option that’s best for you and complete the application process through the partner. With your permission, QuickBooks forwards your information to help speed up the application process.

Step 4. Receive funds. The financing partner you choose to work with will deposit funds directly into your business bank account, often in as little as a few business days.

What Role Does QuickBooks Capital Play?

QuickBooks offers financing through their product QuickBooks Capital, offered by Intuit Financing Inc. When it comes to the role QuickBooks Capital plays within their Marketplace, they essentially help small businesses navigate the financing process by partnering with other online lenders to provide offers with transparent terms. 

Additionally QuickBooks Capital will share some of the information you provide (with your consent, of course!) with financing partners to help speed up and streamline the application process. QuickBooks Capital also shows available business financing offers side-by-side, making it easier to compare competitive rates and terms. 

If QuickBooks Capital is unable to match you with an offer from one of its financing partners, don’t be discouraged. You can always work with them directly to secure working capital, although it may require getting together some additional documentation for your application.

Does QuickBooks Capital Impact My Credit?

No! Comparing your options on the QuickBooks Capital does not impact your personal credit history or your business credit score in any way. This is because QuickBooks only does a soft pull of your credit in order to show you available financing options – a soft credit check does not affect your business credit score.

Pros of QuickBooks Capital Marketplace

There are a number of benefits when it comes to using the QuickBooks Capital Marketplace to secure funding for your business. 

Streamlined application process. Because you can compare offers from within your QuickBooks account before submitting an application, it takes just a few minutes to see if you qualify for funding. If you decide to move forward with a funding application, QuickBooks can share some of the information you provide (with your consent, of course!) with financing partners to help speed up and streamline the application process.

Transparent financing offers. Unlike many other funding options, offers on the QuickBooks Capital Marketplace don’t include additional fees, hidden or otherwise. You’ll know exactly how much you’ll pay upfront before agreeing to an offer, along with how much your monthly or weekly repayments will be.

Multiple types of business financing options. QuickBooks Capital Marketplace helps small businesses connect with a lending partner who offers other financing options that suit their unique situation. These options may include short-term or long-term loans, invoice factoring, installment loans, capital loans, peer loans, business lines of credit, and even SBA loans.

Cons of QuickBooks Capital Marketplace

The only real downside of the QuickBooks Capital Marketplace is that the options are somewhat limited. You may be able to access other forms of financing for your small business by working with a provider directly. And, keep in mind that even though they’re partnered with QuickBooks, those listed in the Marketplace all come with their own applications and eligibility requirements your business may or may not satisfy.

One other potential downside to the QuickBooks Capital Marketplace is that you need some business credit history in order to qualify for offers from partners. Most want to see at least 12 months of your QuickBooks accounting history in order to provide you with offers and gauge your creditworthiness. Even though access to credit through the QuickBooks Marketplace is faster than applying through many traditional lenders, you can’t simply set up an account and apply for funding.

Learn More & Get Started

If you’re a business owner interested in learning more about the QuickBooks Capital Marketplace, our A-to-Z Guide on QuickBooks Financing is chock full of information, and answers some of the most popular questions QuickBooks users have about the QuickBooks Capital Marketplace.

Ready to get started invoice financing in Canada and the United States? FundThrough can help. See if you qualify for our invoice funding solution, or connect your QuickBooks account to FundThrough to get started.

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