Square starts loaning cash to small businesses with ‘Square Capital’

Image Credit: Seth Anderson

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.

More information:

Square is a revolutionizing millions of everyday transactions between buyers and sellers with its free credit card reader for iPhone, iPad and Android devices. Square for iPad services as a full point of sale system for business to acc... read more »

Jack Dorsey (born November 19, 1976) is an American software architect and businessman widely known as the creator of Twitter and as the founder and CEO of Square, a mobile payments company. In 2008, he was named to the MIT Technology ... read more »

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Kim Henry
Kim Henry

Each business sometimes needs additional capital and companies experience certain difficulties when income is not able to cover such expenses. This is when loans are required and entrepreneurs look for lenders who suggest beneficial short-term loans with reasonable interest rates. If would be rather clever to turn to in such situation.

Graham Smith
Graham Smith

Because desperation and strategy look suspiciously similar

Jason Cobb
Jason Cobb

I love the attached image with this story.  Rings true.