Square Launches Small Business Loans

Square offering small businesses in Canada “quick and simple access to funds and eliminating another major pain point associated with running a business.” By using transaction data, Square Loans proactively surfaces customized offers to eligible sellers, providing them with a straightforward application process, where no paperwork is needed, and delivering funds as soon as the next business day. Businesses have one clear, upfront loan fee, which is automatically paid back as a set percentage of daily card sales with Square – so sellers pay back more when sales are strong and less during slower times. The loan fee never increases for the seller, so the amount they owe is always clear. Since the initial launch in the U.S. and Australia, it has provided more than US$9 billion in financing to more than 460,000 businesses, with an average loan size of $6,750.