Square today formally announced “Square Capital,” a selective cash advance program for merchants already using Square’s payment services.
The program, which leaked back in February, signals a curious shift for Jack Dorsey’s Square. The cash advance business often carries negative connotations, yet Square has decided to jump head-first into the game to simplify interest rates and collect repayment automatically by way of its payment systems. Square has already advanced “tens of millions to small companies” through its pilot program, Time reports.
It’s noteworthy, however, that Square Capital is not taking applications from businesses. The only way to receive an advance from Square, at this time, is to use other Square services and hope the company reaches out with an offer.