Is An Online Loan Good for Your Business? How 3 Companies Used QuickBooks Financing for GrowthRamon Ray
Cash flow is a vital part of every successful small business, and a recent Intuit poll of small business owners found that almost 87% feel that managing cash flow is critical to long-term business success and survival. Over the years, innovative online lending methods have become available to small businesses to help gain access to capital to help purchase inventory & equipment and pay employees or bills. Through the power of data and new technology innovations, small businesses have been able to overcome their cash flow needs.
However, small business owners continue to be confused and uncertain about online lending. Many view online lending platforms as “too good to be true.” Before exploring a loan, small business owners should research the online lender they may be interested in – similar to how they would look into a traditional bank.
In this article, I’d like to share some stories of small business that we work with, who received loans from online lenders with help from QuickBooks Financing. I hope these stories help inspire and educate you on how access to capital can help your business grow and thrive.
How Perfect Delivery Grew Their Business with Financing
Perfect Delivery was co-founded by Paul Hodnett and Dave Kerr with the idea that they could do transportation better than a trucking company. Founded in 2010, Paul purchased four delivery trucks and together with Dave, launched their business as a transportation and delivery company.
In 2014, both business partners were faced with the challenge of seeking additional capital they needed to grow and sustain their business, purchase trucks and ensure job security for their employees and themselves. Perfect Delivery met with banks to expand their financing options – only to be turned away for being too small.
Both partners were frustrated and did not know how they would make payroll, when Paul received an email from QuickBooks Financing. With a few simple clicks, he was connected to Direct Capital, and within 24 hours and minimal paperwork, Perfect Delivery received the funding they needed.
“Having the flexibility, getting extra financial assistance, and paying it back without penalty is huge,” noted Dave.
As a result, Perfect Delivery was able to purchase new equipment and move to a larger warehouse,even during their slow period, while keeping all employees in their jobs. Today, Perfect Delivery also offers a medical plan, 401k options and paid vacation for all employees.[Tweet “How 3 #businesses used @QuickBooks #financing to save their companies.”]
10 Federal Management Became a Top Real Estate Firm with Smart Financing
Raleigh, NC-based 10 Federal Management is a property management company which was co- founded by brothers Brad and Cliff Minsley in 2010. A few years after launching their business, Brad saw an opportunity to grow exponentially by integrating some of the latest technologies available to real estate companies. “However, investment in the technology came with a price and at the time we did not have the capital needed to make the purchase,” said Brad.
When he turned to banks for help, they were adverse to provide loans to real estate firms. After receiving a letter about QuickBooks Financing, he quickly applied and they received funds within 48 hours – giving Brad and Cliff the cash needed to run and grow their business. “This was truly a 10 out of 10 experience. Everything was so easy, and I got a lower interest rate than what I had with my prior loan. Thanks to the funding, I even won $200,000 in new deals within the first 60 days,” said Brad.
Since implementing their software, their revenue growth has increased exponentially. Starting with three employees, the business has now grown to be one of the most successful real estate management companies in the region with 80 employees that are managing 11 properties (mainly apartment buildings) across the state.
Outdoor Lighting Manages its Seasonal Business with Financing
Outdoor Lighting Perspectives, a Pittsburgh-based company co-owned by husband and wife Amy and David Perlmutter, offers custom outdoor lighting and landscape design services. For 11 years, the Perlmutters have served over 3000 clients who have come to them for specialized lighting and outdoor landscaping projects.
Pittsburg’s distinct seasons impact the viability of an outdoor lighting company, limiting its operations to 4-5 months a year. As a result, they saw the need to expand their business and began to offer services in custom holiday lighting. However, a few years ago when winter extended until April, the Perlmutters sought additional financing to keep their staff employed, purchase equipment, and ensure extra flow during a slow period.
After being declined from four different banks, Amy received an email from QuickBooks Financing and decided to apply. Within a week, the Perlmutters received their $125,000 capital from OnDeck Capital. Having that cushion of the loan, in addition to the profit of the holiday lighting season helped keep the business surviving through a tough winter.
“I think we tend to be closed-minded when it comes to financing, and some people are a little more conservative about trying non-traditional avenues. I’d say keep an open mind when it comes to what you’re looking for. You never know what you will find,” said Amy.
With QuickBooks Online, customers can not only keep their finances organized, but can also use their accounting data to finding financing options through QuickBooks Financing. By using QuickBooks Financing, customers have experienced an easier application process, and in most occasions, they have been funded within 24-48 hours. Furthermore, customers can take advantage of the QuickBooks ecosystem, and all the necessary information is in one place – users can pre-fill one form utilizing their QuickBooks data, then quickly see the various offers they qualify for across a curated set of QuickBooks lending partners.
For more information on QuickBooks Financing, visit QuickBooksFinancing.Intuit.com.
Rania Succar is a strategic business leader with a proven track record in driving growth. She recently joined Intuit to build and grow the QuickBooks Financing business. Prior to that, she oversaw product commercialization and go-to-market strategy for YouTube’s multi-billion dollar advertising business in North America.