Intuit’s SMB Loans Relatively Flat Year-over-Year

Intuit originated $279M worth of term loans to small business for the fiscal quarter ending October 31. This is down from the $314M originated over the same time period last year.

“As of October 31, 2023 and July 31, 2023, the allowances for loan losses on term loans to small businesses were not material,” the company wrote in its earnings report.

Further, Intuit said that “In August 2023, we entered into a forward flow arrangement with an institutional investor. Pursuant to this arrangement, we have a commitment to sell to the institutional investor a minimum of $250 million in participation interests in unsecured term loans purchased or made to small businesses over the next 18 months, subject to certain eligibility criteria.”

Intuit did not raise its term loan program on its earnings call nor did analysts ask about it.

Here’s how Intuit’s flat SMB loan originations stacks up against some of its direct competitors:

Square Loans – Steady

PayPal – Significant pullback

Shopify Capital – Significant increase