The Problem with QuickBooks Loans
Intuit is making borrowing money incredibly easy for businesses. That doesn’t mean it’s a good idea
Good morning!
Here are today’s highlights:
Have you asked ChatGPT whether it’s likely to recommend your brand?
LinkedIn is becoming more essential and less of a corporate wasteland.
The Economist reports that President Trump’s tariff chaos is likely to get worse this year.
Private employer hiring has been in low gear since April.
FINANCE
Ami Kassar takes issue with an accounting platform offering high-interest loans: “Tools like QuickBooks are supposed to be neutral infrastructure, something that works quietly in the background while owners focus on running their businesses. That’s why it caught my attention when Intuit, the company behind QuickBooks, began leaning more heavily into small business lending. Through QuickBooks Capital and its lending partners, Intuit originated $1.3 billion in loans in a single quarter and $3.5 billion over the most recent fiscal year, nearly double the year before. That level of activity signals something important: lending is no longer a side offering. It’s a significant part of the business.”
“To be clear, small businesses need access to capital, and there’s nothing inherently wrong with lending. The concern is how and where these offers are being made. QuickBooks sits at the center of a business’s financial life. It sees cash flow, invoices, payroll, and taxes. When financing offers appear inside that same system, they feel less like marketing and more like guidance — even when they’re not.”
“I wanted to understand what this looks like from a business owner’s perspective, so I tested it myself. My company qualifies for a traditional bank line of credit at roughly 8 percent interest. We’re not desperate for capital, and we have options. When I asked QuickBooks about financing options, I was shown a very different picture.”
“One offer was for $100,000, repaid weekly, with an APR just under 36 percent, resulting in nearly $20,000 in interest over one year. Another was for $250,000, also with an APR close to 36 percent, weekly payments, and more than $74,000 in interest over 18 months. If I wanted to pay it off early, I would still owe 75 percent of the remaining interest.”
“If you’re a small business owner in need of capital, here’s the simple takeaway: Don’t confuse the Intuit or QuickBooks brand with a stamp of approval. If a loan shows up inside your accounting software, it doesn’t mean it’s reasonably priced or the best loan for your business.” READ MORE
