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.
Intuit will use QuickBooks data to identify borrowers with good credit and likely to need financing. Intuit, PayPal and Square already know how much money millions of small businesses are bringing in each day. Now these tech firms are stepping up efforts to mine that data to get into the lending business. 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.”