topic Re: Quickbooks Term Loan Approval - $45k in Business Credit

Quickbooks Term Loan Approval - $45k

isik — Fri, 14 Feb 2025 06:03:31 GMT

My LLC is about 1.5 years old and because of that I was struggling to find financing for equipment I want to purchase. I needed to borrow at least $25000. I tend to stay away from online lenders because of their high APRs and fees, and in my opinion misleading to maybe even sometimes illegal policies, but because of my LLC's age I had to pick a lender like that.

Shopify has been bugging me with their MCA program, but it adds up to a really high APR when you factor in how long it'd take to pay it back (9 months). They charge a finance fee so paying back early doesn't help. Only upside is no personal guarantee. Similarly, PayPal keeps sending emails for their term loan program, but they also charge a finance fee, which would add up to a very high APR and no advantage of prepaying.

Quickbooks is also another company sending me a million emails a day about their term loan. The number keeps changing but the last pre-approval email was for "$13000 or more", and when I clicked it, it was "$20000 or more". I've seen it as low as "$6000 or more", so they're all over the place. I'm not a fan of Intuit, but it felt like the best option because they (issued by WebBank) charge interest and not a finance fee, which likely means APR will end up being lower. No prepayment penalties either. They asked for my bank, which was already linked (not a fan of sharing this but whatever), asked for my name, SSN, business name and address. I think that's it. It took a minute, and came back with a approval for up to $45000. No personal inquiry, but I believe they said they'd soft pull it.

The APR is quite high though as you'd expect. Depending on the term length you pick, seemed to be between %16-18. Max term length for my offer was 24 months. I didn't accept it at first but waiting another half a year for better financing offers will actually be worse for my business than paying the high APR, so the next day I agreed to borrow $40000 at 18% with a 24 month term. About $2000 a month payment. I'm hoping to pay this back early, as soon as I can, because of the APR. Accepting didn't result in a HP either.

Last year my revenue was barely in 6 digits, but with a huge spike in the last few months. If that keeps up, mid-6 figures isn't unrealistic for this year. I'm sure this was a factor in their decision making for the high approval and for the high APR. I didn't enter any estimates or personal income, they based it on the linked account and books.

Re: Quickbooks Term Loan Approval - $45k

Dcowboy08 — Fri, 14 Feb 2025 14:02:38 GMT

Grats on the loan. Keep us updated on the ease of working with them, receiving your funds, and other goodies.

I've been using QB's for my design/build firm for 9 years. Some things I love, others find me screaming at the monitor. I've received the offers, like you, forever, but never pulled the trigger.

Thanks for posting...

Re: Quickbooks Term Loan Approval - $45k

sccredit — Fri, 14 Feb 2025 16:07:00 GMT

Don't blame you on some of the online lenders. A lot of them advertise equipment financing and then will try to flip you into a merchant cash advance. I would talk to local business loan brokers, try googling like "equipment loans near me". There are a number of true equipment lenders that would have written that loan for 10%-12% based on just your last 3-4 bank statements. Unfortunately most don't write loans directly for the business, they only deal with brokers. Can also try googling "app only equipment financing".

Agreed that once you hit 2 years time in business your options open up.

Congrats on the QB loan, the terms definitely seem more advantageous than some others.

Re: Quickbooks Term Loan Approval - $45k

GZG — Fri, 14 Feb 2025 17:40:40 GMT

congrats on the loan approval!!

Re: Quickbooks Term Loan Approval - $45k

SouthJamaica — Fri, 14 Feb 2025 17:47:35 GMT

Yeah I was offered a merchant cash advance the other day. When I did the math it came to about 280% APR

Re: Quickbooks Term Loan Approval - $45k

sccredit — Fri, 14 Feb 2025 18:08:07 GMT

@SouthJamaica wrote:
Yeah I was offered a merchant cash advance the other day. When I did the math it came to about 280% APR

There are so many alternatives that I don't understand why people still take them. Frankly, I find that it is mainly the desperate. They didn't plan ahead and need cash NOW so they'll take whatever they can get. With a 600 credit score and decent revenues I can get someone into a 2 year term loan for around 14% vs 200%+. Or 650+ I can put them into a line of credit at 15%. No, it's not prime bank rates but SBA 7(a) loans are all over 10% right now. With a 700+ credit score and tax returns showing a profit I can a borrower into a 10 year SBA 7(a) loan at 10.5%.

Re: Quickbooks Term Loan Approval - $45k

SouthJamaica — Fri, 14 Feb 2025 18:28:59 GMT

@sccredit wrote:
@SouthJamaica wrote:
Yeah I was offered a merchant cash advance the other day. When I did the math it came to about 280% APR
There are so many alternatives that I don't understand why people still take them. Frankly, I find that it is mainly the desperate. They didn't plan ahead and need cash NOW so they'll take whatever they can get. With a 600 credit score and decent revenues I can get someone into a 2 year term loan for around 14% vs 200%+. Or 650+ I can put them into a line of credit at 15%. No, it's not prime bank rates but SBA 7(a) loans are all over 10% right now. With a 700+ credit score and tax returns showing a profit I can a borrower into a 10 year SBA 7(a) loan at 10.5%.

Yeah no one should take them, but probably it is done out of desperation.

But even if one is desparate, there's no point in signing on to something that will make your situation worse, not better.

Re: Quickbooks Term Loan Approval - $45k

cashorcharge — Sat, 15 Feb 2025 16:35:34 GMT

Congratulations on your approval without a PG or HP.

Business options with decent rates aren't as prevelent as they used to be.

I have been playing the Balance Transfer game with a few business cards to rotate debt at 0% for a while and thankfully, I think the usage and taking the offers, actually motivates them to continue to send them to me.

If you can't pay it down quickly....perhaps look at US Bank for a business card...they will make you PG the card but the BT offer may help you

Re: Quickbooks Term Loan Approval - $45k

albertino399 — Tue, 31 Mar 2026 08:35:24 GMT

Catching this late, but I took that same $45k boat last year and the "real-time" underwriting is definitely a double-edged sword. It’s great for speed, but those rigid repayments don't care if you're having a slow week, I got to the point where I was terrified to even check my bank balance.

To deal with the stress, I reached out to Delancey Street. They actually stepped in and got the lender to stop the daily withdrawals immediately, then negotiated a monthly payment I could actually afford so I didn't have to close my doors. Having a real person handling the legal side is a huge relief when the automation starts working against you.