August 23, 2016
Accounting is one reality that no business can escape. There are already a lot of companies out there that make accounting and invoicing software and some of them, like Intuit, are billion-dollar companies with brands that have a high level of name recognition, like TurboTax and QuickBooks. ZipBooks is making that case that there is room for at least one more. With ZipBooks $2M seed round funding, it seems that investors are sitting up and taking notice.
While the Sage Financial Capability Survey found that more than half of small businesses owners recognize that cash flow is the aspect of financial management that is most critical to their business’ success, most businesses do not have the tools to resolve a short-term cash crunch. ZipBooks has an innovative solution that is capturing the attention of small business owners.
How It Works
Use ZipBooks’ accounting software for free and without any restrictions but pay interest on any short-term cash advances that you borrow from ZipBooks based on amounts that you invoice for your clients.
When a company opts to finance an invoice, the money hits their bank account the next day. ZipBooks automatically schedules repayment over 12 weeks charging .5% interest per week. Users are free to repay early anytime after the first week.
There is much flexibility built into the system. Depending on a company’s approved limit, account users can finance a partial invoice. While ZIpBooks is designed to make invoice financing a seamless process without adding additional steps beyond clicking the “Send and Get paid now” button, companies have the option to come back to an existing invoice and finance it after the fact.
Applying for invoice instant payments is easy. After you create a new account, you can fill out the application and the ZipBooks underwriting team will get back to you with a decision that same week. While ZipBooks invoice financing is only available in the US, products like Stripe’s Atlas are making it easier than ever to create a new business with a US bank account.
Since its launch over a year ago, ZipBooks has garnered a strong following with over 20,000 small businesses registered to date. Users are finding out about ZipBooks through searches for “free accounting software.” They are also finding ZipBooks through strategic integrations in the Google Apps Marketplace, Chrome Web Store, and Apple’s App Store.
More exciting than the free accounting software is the implication of tens of thousands of businesses storing their financial data in one place. It puts ZipBooks in the position to make sense of complex information and utilize it to better serve their users. The goal is for ZipBooks to know what financial tools you need access to and make a recommendation before cash gets tight.
ZipBooks recently hired Jaren Nichols (HBS ‘15) away from InsideSales.com to expand its ability to service the overwhelming demand invoice financing services. Previous to InsideSales.com, Jaren worked at Google, Nest, and Dropcam.
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