Learn more about Autobooks Capital

Autobooks Capital provides quick access to short term capital advances, enabling businesses to grow without cashflow obstacles.

Autobooks Capital provides your customer access to a line of credit that lives within the Autobooks application. It offers a way for a small business to smooth out cashflow by providing a cash advance on anticipated future receivables. 

Picture your customer that owns a small business: they are gearing up for a busy summer season, where they'll make the bulk of their revenue. To get ready for the season, they need to purchase about $10,000 worth of supplies and materials but their account balance is at its lowest of the year until summer arrives. With Autobooks Capital they'll be able to draw an advance to cover these upfront expenses, then repay the advance on a set schedule (or repay it in full once summer revenue starts coming in). The business can draw on their capital advance line as needed; their job schedule can continue without any cashflow bumps.

Recent surveys of small businesses show that over 60% of respondents identify cash flow as the biggest challenge they currently face. Other platforms like Square, QuickBooks, and Stripe offer similar products to Autobooks Capital. When your small business customer uses an outside source for cash advance, the dollars may not reach the checking account with you. And outside platforms also offer bank accounts and other banking products to your customer, putting your customer retention at risk.

Like all other Autobooks features, Autobooks Capital isn't transferrable if the business leaves your financial institution. This increases your customer retention when you offer such a desirable product. And since advance dollars are deposited to the business DDA, deposit activity will increase.

How it works

Your customer will access Autobooks and accept our terms of service. At that point, we will pre-qualify the customer for an Autobooks Capital advance line (this pre-qualification is separate from our approval process for accepting digital payments). Autobooks Capital is not a loan but a line of credit that can be drawn on, paid down, and used again.

The customer will manage their advances and repayments within the Autobooks application, in a tab labeled Capital.

Customer eligibility

Customers that use Autobooks must meet a few minimum requirements of their primary checking account to qualify for a capital advance line:

• 20+ transactions in the account within the last 90 days
• 4+ deposit transactions in the last 90 days
• 1 or more deposit transactions in the last 30 days

A customer will be evaluated for pre-qualification eligibility once they accept Autobooks terms of service. If they qualify, the customer will see their cash advance offer details within our application in the Capital tab (qualification evaluation takes approximately 60 seconds once terms of service is accepted). Autobooks will make the customer aware of their pre-qualification offer via email as well.

If the customer is not eligible, they won't see the Capital tab in our application. Even if the customer is not immediately eligible, we'll reevaluate eligibility each time the customer logs in to Autobooks (up to one time every 24 hours).

Approval process for Autobooks Capital

The application process for Autobooks Capital is in addition to meeting the pre-qualification eligibility requirements above. It is also separate and distinct from our application to process digital payments.

• If the customer has completed the Autobooks application process to accept digital payments, then the application for capital advance is triggered merely by accepting the Capital terms of service.
• If the customer has not completed our application to accept digital payments, we will display the same application questions to the customer within the Capital application process.

For the Capital application process, a soft credit pull will be performed. This soft credit pull does not impact the SMB's credit score. The approval is issued on the basis of revenue trends within the DDA. Approximately 90% of Capital applicants will be approved for an advance line.

If a customer is denied, they may reapply after 90 days from the initial application.

Determining Capital advance terms

The average limit of a Capital advance line will range between $22,000 and $35,000. The final dollar amount is dependent on the financial institution market demands.

The advance line limit is determined by a combination of DDA activity and revenue history for the business.

Advance availability

Customers that actively take advances on their line will retain access to the feature as long as they continue that activity.

If an approved advance line is dormant, the customer will retain access to the available funds between one and three years (depending on the risk level of the business type).