Save time with QuickBooks, Fundbox
QuickBooks has announced that it will be teaming with Fundbox in order to help small businesses with covering invoices until they are paid.
“We definitely noticed a hole in terms of invoice financing,” Jeff Kaufman, QuickBooks Financing’s project leader, told PYMNTS, a website focusing on commerce and payments.
Kaufman said QuickBooks first went to Apps.com, its own website to help app developers create products that can integrate into the QuickBooks platform. Fundbox, according to Kaufman, is the highest-rated invoice financing tool on the site.
He said that high user rating and the way Fundbox treats small-business invoices made it the way to go for QuickBooks.
“We love the fact that when using the Fundbox product the small business customer retains direct contract with their own customer, whether their billing or payment information changes,” Kaufman said. “It’s really great that the small businesses still get to manage their invoices, but at the same time they’re unlocking that working capital.”
He said the ability for small- and medium-sized enterprises to maintain ownership of invoices sets Fundbox apart from other factoring services. Others feel that way too. Fundbox recently secured $50 million in new financing from Spark Capital Growth and other investors. Fundbox has doubled its revenue every quarter for seven consecutive quarters, according to company officials, although they have not released exact numbers.
Kaufman said Fundbox draws SMEs with its invoice financing tool. Working capital is the top issue for small- and medium-sized businesses, he said, and Fundbox addresses that.
With Fundbox, Kaufman said, users “are able to get the cash, then start the repayments cycle, and once an invoice gets paid off they can completely repay.”
He said the invoice financing tool creates a seamless experience for business owners needing working capital.
Kaufman added that faster short-term financing can supplement a business’ existing long-term loans.
“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.”
Kaufman said while SMEs may have a long-term loan to cover major purchases like equipment, firms can still need to access funding based on changing daily needs.
According to Kaufman, QuickBooks found that when going via traditional routes for funding, small-business owners take an average of 33 hours gathering all of the data they need to apply. He noted there is an additional 10 days before a funding decision is made.
“This whole 33 hours and the week and a half is resulting in lost opportunities for these small-business owners,” Kaufman said.
He said an integration of QuickBooks – and all the fiscal data which that encompasses – can speed up that loan application process.
Kaufman said through QuickBooks, business owners can review data being sent to Fundbox ahead of time.
“This ability to have access to the data and really make business information the focus of the loan decision is critical,” he said.
Kaufman noted that late payments on small-business invoices continues to be an issue.
“It’s a problem in the U.S. and it’s becoming an even bigger problem,” he said. “A large portion of large companies pay late because they can and it improves their working capital. We see with small businesses working with larger companies or even midsized ones, that their days sales outstanding are increasing and increasing.”
With SMEs waiting longer to see their payments, Kaufman said, the QuickBooks deal with Fundbox means that business owners can finance the invoice in just 15 days. He said with DSO on the rise, the market is going to need more invoice financing options.
Sansone Accounting & Tax is a provider of QuickBooks services. Sansone is known for guiding clients through planning and preparation decisions to minimize tax liabilities and help increase their business efficiency. Whether it is accounting regulations or questions about QuickBooks, the firm prides itself on being available to play a major role in supporting financial, record-keeping and tax-planning issues.