Last year Square Capital last year, the company has issued $100 million in loans to 20,000 small businesses.
Square charges 2.75% per swipe on their payments platform. With Square Capital, there’s no interest applied to the amount its businesses pay back. Instead, it’s paid back as a daily percentage of sales.
Since bursting onto the payments scene in 2009, Square Inc. has been widely recognized for its mobile and point-of-sales payment system for small businesses. But the company has quietly built an entire close-looped ecosystem where businesses — and Square — can thrive. A little less than a year ago, Square announced Square Capital, a way to offer certain merchants a cash advance to help grow their business. Today, Square Capital has dished out approximately $100 million to 20,000 merchants. For comparison, On Deck Capital Inc. ONDK, +0.24% a small-business lender that went public in 2014, has serviced upwards of 30,000 businesses since opening in 2007.