Square, the credit card processor that fits into your smartphone has been an easy to deal with supplier to small businesses. Many of whom have had difficulty in the past getting credit card merchant accounts.
Square, the Silicon Valley payments company, is expanding its loan program to small businesses. The company announced on Tuesday that Square Capital, its loan-making division, has raised an additional investment from previous backer, Chicago-based Victory Park Capital (which tripled its original investments) and new investor Colchic Capital.Square, co-founded by Twitter’s Jack Dorsey, says that its Capital arm has been growing at a fast clip. It has loaned more than $100 million to more than 20,000 businesses over the past year. In April, Square Capital advanced nearly $25 million in capital.
This is big news for small businesses but also serves to highlight the magnitude of the small business lending opportunity that I explore in my book Invest Local.
If you forget how merchant cash advance works, check out this video from last fall.