Even if you have the initial cash that you need to establish your company, you might need to tap into some extra capital as your venture grows, so that you can afford to take advantage of new opportunities.
For most small businesses, the only option will be a business loan. If you’ve ever tried to apply for small business loans before, you’ll know just how tough that can be. Banks and credit unions don’t always trust businesses, particularly when a startup is small or new.
Fortunately, if you already have a history using Square, one of the most popular POS systems on the market, then you could consider turning to this company for support instead.
With Square Capital, companies can access the business financing solutions that they need to help their venture grow, without having to worry about huge interest rates or fees.
What is Square Capital?
The company launched with a mission of giving companies and service providers the easy-to-access transaction systems that they needed to run pop-up shops, retail locations, and restaurants around the world. With square, you can get the daily payments you rely on from your customers without having to worry about overly complicated technology and tools.
Square was one of the first companies to roll out a wide range of mobile-friendly payment solutions for modern vendors, including an EMV compliant chip reader for credit and debit cards.
Square also gives users access to things like their own mobile paydayloanstennessee.com/cities/loudon/ wallet, digital inventory management, and more. As a pioneer in their field, it’s no surprise that Square decided to expand their adventures in payment systems even further, by entering the world of business loans and business financing.
So, what on earth can you expect from a Square Capital loan, and how beneficial are these financing options for business owners?
In 2014, Square began experimenting with financing options in the form of merchant cash advances – a type of non-loan financing option where Square collected the payments owed by deducting a percentage of each of your sales.
The mobile POS recently converted their Square Capital product to a “loan” service. However, in practice, the fees and payment strategy are precisely the same as they were before. Ultimately, you’re still getting a merchant cash advance; it just comes with the “loan” title.
Square Capital’s rates and fees are all customized according to your daily card sales over the Square POS system (read our Square POS review). This means that you need to be a merchant with Square to access their working capital offering. Additionally, all loans need to be paid within a maximum of 18 months.
Square Capital Review: Eligibility
One of the most important things you need to consider when choosing any “working capital” option for your business loan, is what kind of eligibility requirements the company has in place.
As mentioned above, the most critical restriction for Square Capital is that it’s only available to merchants that use Square POS. You might be able to sneak your way into the system if you’re using a POS that has a partnership with the Square brand too.
Because Square already has a payment processor to offer merchants, it’s in an excellent position to collect and process information on your business finances. If you’re already signed up with Square, that also means that you don’t have to worry about a complicated repayment process or lengthy loan application.
Square Capital takes a unique approach to small business loans by not allowing users to apply for their own cash. Instead, the company will extend an offer to you if you’re active on the Square merchant services platform, and you’re earning enough money.