Fundbox is a new lending service that gives you a loan based on the invoices you generated. We covered it here. Recently, Intuit announced a tighter integration with Fundbox, a partnership offering a new product, “QuickBooks Invoice Financing powered by Fundbox,”
As part of this announcement Intuit is releasing a new research report, “Financing Small Business Success” which shows how online lenders are reshaping the small business financing market.
Small Businesses Use Financing To Fuel Growth – The average small business loan is $83,000, and the top three uses of financing are: purchasing new equipment (35 percent), working capital (29 percent), and new production or service space (13 percent).
Traditional Application Process Relies on Personal Credit History– Only a third (34%) of small businesses can access all of the funding they need from the traditional financing system, which relies on outdated methods of measuring credit strength. For example, 83% of businesses with fewer than 11 employees rely on their personal credit history to apply for a business loan.
The Online Lending Process is Faster and More Efficient – Alternative lending streamlines the application process by enabling small businesses to use data from sources such as QuickBooks Online to apply for loans with the click of a button. 77% of small businesses say they would use a loan application system that makes the process easier by pulling data lenders need directly from their accounting solution.
Online Lending to Small Businesses Projected to Grow Dramatically – The study projects that online lending to small businesses will grow from an existing base of $9 billion in 2015 to $83 billion by 2020, moving from a mere 1.3% of the small business credit market to 10.5% in five years.