When putting it all in perspective, new deal with Fundbox, along with its other financing partnerships, all aspires to make life easier for small business owners, who already fight enough. At the end of the day, for the small business owner, we see time again in Pro Back Office: They are just so busy, and they’re trying to converge on improving sales and on their obsession for growing the business overall
With all of the availability of financial data that QuickBooks has to provide an organization or an individual, it is no doubt why the accounting platform can connect with other lending partners to provide a selection of financing alternatives to its small business users. But as per Jeff Kaufman, QuickBooks Financing’s project leader, there was something lost. “We definitely noticed a gap in terms of invoice financing,” he told PYMNTS.
In an announcement, QuickBooks Customer Support announced that it would be filling that hole through the assistance of Fundbox. But the service is not a traditional tool. Kaufman described how, and why, QuickBooks go with Fundbox to tap into this kind of lending service for SMEs. QuickBooks Support first went to Apps.com, its website used to assist app developers create new products that can integrate into the QuickBooks platform. Fundbox was the highest rated invoice financing tool on the site.
“By having a line of credit in place where, in the background, small businesses know they have availability of working capital if they need it – it’s a great option,” Kaufman said. “Where I think the invoice receivable is key is in this day-to-day working capital space.”
So while SMEs may have a lasting loan to fund main purchases for, for example, equipment, these companies can still access funding based on their changing daily requirements. But SMEs can access working capital on the fly if it is not provided to them in a likewise quick fashion. QuickBooks Online Suppport found that, when going the traditional way for financing, small business owners spend an average of 33 days gathering all of the data essential to apply – and an extra week-and-a-half until a choice is made.
” he said, adding that an integration into QuickBooks – in company with all of the financial data that comes with it – makes the small business application process far more automated.
Kaufman explained that small business can assess the data being sent to Fundbox earlier. “This capacity to have access to the data and literally make business information the spotlight of the loan decision is critical,” he added. In any kind of business, speed is key factor and this one factor defines whether one can succeed or not. And that is the only reason why late payments on small business invoices is such a headache, Kaufman said.
“It’s an issue in the U.S., and it has become an even bigger trouble,” he said. “A large portion of huge companies pay late because they can, and it enhances their working capital. We see with small businesses working with larger companies, or even midsized ones, that their days sales outstanding are growing and growing.”