mPOS player Square is extending its small business cash advance financing programme after securing investment from Victory Park Capital.
The Square Capital programme is aimed at small businesses using its Square Register technology, meaning they do not have to go through an application process. Instead, Square analyses the processing volume and history data it holds on its users to determine when and how much to give to them.
Square will extend its cash advance service
Businesses receive 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. Square says that it expects sellers to pay back the loan in around 10 months, although there are no penalties if it takes longer.
The service opened in May and has already been used to extend nearly $50 million to more than 10,000 businesses. Square says that the undisclosed Victory Park investment will enable it significantly enlarge the programme, extending hundreds of millions of dollars to tens of thousands of additional sellers.
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