After years of offering small business accounting products like QuickBooks and TurboTax, Intuit is looking to enter the lending market. In speaking with Intuit’s head of QuickBooks Capital Rania Succar, TechCrunch learned about the company’s overall strategy to offer competitive rates and loan amounts to its potential clients, that being to lean on its access to data. According to TechCrunch, Intuit’s “credit model is based on 26 billion QuickBooks data points” and will be used to offer businesses loan options. Once accepted, Intuit will be able to track the payment process of the small business and learn from it, offering better terms and options in the future.
Today, companies using QuickBooks Capital, “can now get access to small business loans up to about $35,000 for up to six months right from inside their bookkeeping software.” Succar stressed during their interview that the model will offer conservative options, but if a businesses is seeking more funding, it may grant a counter offer if deemed necessary.
Intuit’s use of data and move towards the fintech market where no one corporation has taken a lead is brilliant. In today’s tech market utilizing your user base to expand your services is a great way to increase revenue. The big issue is the payment terms and lack of experience however. But the payoff if done right could be enormous. For companies like mine, looking for new funding options, Intuit’s offering couldn’t have come at a better time. Keep an eye out for Intuit, and if you’re already using Quickbooks give it a try to see if it fits your company.