25 March 2017
visit nextgenbanking.co.uk

Square scores investment to extend cash advance service

19 August 2014  |  6130 views  |  0 Square logo

Square is ramping up its small business financing programme after securing investment from Victory Park Capital.

Square Capital is aimed at small businesses that face a tough time going through the arduous process of getting capital from traditional lenders.

Because the service is only open to merchants that use the Square Register technology, there is no application process - Square bases its decision on whether and how much to advance on the processing volume and history data it holds on its users.

Firms get the money as soon as the next day and it is then automatically paid back - along with a flat fee - as a set percentage of daily card sales. Although Square says that it expects sellers to pay back the loan in around 10 months, there are no penalties if it takes longer.

After a major pilot, the service opened up in May and has already been used to extend nearly $50 million to more than 10,000 businesses.

Square says that the unspecified Victory Park investment will enable it significantly enlarge the programme, extending hundreds of millions of dollars to tens of thousands of additional sellers.

The cash advance service is just one way in which Square has been looking to move beyond its payments roots in recent months. Earlier this year it emerged that, despite revenues of $550 million, the firm posted a loss of around $100 million in 2013 as it struggled with the thin margins on the 2.75% fees it charges merchants.

Last week, in the wake of Amazon's move into its core mPOS market, Jack Dorsey's firm went on the defensive, posting a widely derided blog defending itself against "myths" about its services and financial health.
KeywordsFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Square gets defensive about 'totally bogus' myths

Square gets defensive about 'totally bogus' myths

15 August 2014  |  8057 views  |  0 comments | 4 tweets | 5 linkedin
Amazon undercuts Square and PayPal with mPOS launch

Amazon undercuts Square and PayPal with mPOS launch

13 August 2014  |  12399 views  |  0 comments | 16 tweets | 34 linkedin
Square buys food delivery outfit Caviar

Square buys food delivery outfit Caviar

05 August 2014  |  3931 views  |  0 comments | 1 tweets | 1 linkedin
Square gears up for US EMV switch with chip card reader

Square gears up for US EMV switch with chip card reader

30 July 2014  |  8378 views  |  0 comments | 10 tweets | 11 linkedin
Square moves into small biz lending

Square moves into small biz lending

28 May 2014  |  7657 views  |  0 comments | 13 tweets | 13 linkedin
Square to open New York office to house 350 employees

Square to open New York office to house 350 employees

25 April 2014  |  4472 views  |  0 comments | 5 tweets | 4 linkedin
Square denies it discussed sale to Google

Square denies it discussed sale to Google

22 April 2014  |  5659 views  |  1 comments | 12 tweets | 8 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit abe-eba.euParticipate in the surveyVisit capgemini.com

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
56991 views comments | 15 tweets | 35 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8379 views comments | 23 tweets | 37 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
7683 views comments | 39 tweets | 24 linkedin
Westpac wants to take over your messaging keyboardWestpac wants to take over your messaging...
7004 views comments | 4 tweets | 10 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
6778 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job