The large amount of financial data captured on small businesses has allowed new service providers to become lenders. Intuit's QuickBooks has teamed up with OnDeck, UPS has united with Kabbage, and Square has partnered with Victory Park to provide small business loans.
In the latest move, Intuit Inc., the maker of TurboTax, is expected to announce Thursday that it is teaming up with online lender OnDeck Capital Inc. to create a $100 million fund to provide loans to users of its QuickBooks accounting software. “The bottom line is that small businesses need financing,” said Intuit executive vice president Dan Wernikoff. “They are not getting it at the same levels that large businesses are.” Small business lending remains well below prerecession levels. Banks held $599 billion in small loans to businesses at the end of the second quarter, according to the Federal Deposit Insurance Corp., down nearly 16% from a peak of $711 billion in 2008.