QuickBooks Capital: What It Is and How to Compare It

What financing inside accounting software means

Some accounting platforms use data from your books to offer loans to eligible customers. You see the offer in your dashboard instead of filling out a long application.

The idea is simple. If your bookkeeping lives in one place, the platform can see sales, expenses and cash flow. A financing partner can use that information to decide whether to extend an offer. That cuts paperwork and can speed up approvals.

The convenience has a tradeoff: you usually see one offer, from one provider, on that provider's terms. Eligibility, amounts and pricing may not be available to every user. This article does not state any current terms because they change; verify them directly with the provider before you decide.

What to check in any in-software offer

Check the total repayment, fees, repayment schedule, how payments are collected, any early-payoff rules and what happens if revenue drops.

Ask for the details in writing and run through this list:

1. Total cost. How many dollars do you repay on the amount you receive? See total cost of a business funding offer.
2. Fees. Is there an origination or other fee deducted from the proceeds?
3. Payment schedule. Daily, weekly or monthly? Convert to a monthly equivalent with this method.
4. Prepayment. Do you save money by paying early, or owe the full cost anyway?
5. Collateral and guarantees. Is a personal guarantee required? Read how guarantees work.
6. Reporting. Does the provider report payments to business credit bureaus?

Pros and cons of using software-based offers

The benefits are speed and low paperwork. The risks are limited choice, possible bias toward the provider's own terms and a temptation to accept without comparing.

Possible advantages

• Pre-qualification based on data you already keep
• Fast application with fewer documents
• Funds delivered to a linked account, and payments tracked in your books

Possible drawbacks

• You see only one provider's offer
• Eligibility depends on your account activity and history, not just your credit
• Amounts may not match the size of the project you need to fund
• Convenience can discourage you from shopping around

None of these is a reason to avoid the offer. They are reasons to compare it with at least one other quote before accepting.

Alternatives to compare

Compare against a bank term loan, an online line of credit, working capital, revenue-based financing or an SBA loan, depending on your need and timeline.

Read about each at working capital, business line of credit and SBA loans.

How to compare two offers fairly

Put each offer on one sheet: amount received, total repayment, term, payment amount and monthly-equivalent payment. Then test the payments against a slow month.

Create a short table with the same fields for each offer. Include the amount you actually receive after fees, the total you repay, the length of the term and the payment converted to a monthly figure. Then compare the cost to what the money will produce.

Illustrative example: Offer A gives you $50,000 and requires $56,000 back over 12 months. Offer B gives you $50,000 and requires $54,500 over 9 months. Offer B costs $1,500 less in total, but its monthly payment is higher. If your cash flow can handle it, B wins. If not, A may be safer. Our compare two funding offers worksheet walks through the steps, and the stress test checks risk.

Getting a second quote from ROI Funder

Applying with ROI Funder takes a few minutes, uses a soft credit pull and does not obligate you to accept. You can then compare our offers with any other you hold.

ROI Funder works with a network of funders and matches each file to funders that fit it. Funding ranges from $5,000 to $5,000,000, with 500+ FICO, 6+ months in business and $20,000+ monthly revenue considered. A complete file is the application plus 3 months of business bank statements, and approved, complete files can be funded the same business day.

We start from what the money will produce and show true cost, payback period and monthly-equivalent payments before you sign. That makes it easy to line our offer up beside the one in your software. If it is better, you gain. If it is not, you lose nothing but a few minutes. Begin on the application page. ROI Funder is not affiliated with or endorsed by any accounting software provider.