Square announced on Tuesday that it is working with Victory Park Capital to extend hundreds of millions of dolalrs to independent businesses as part of its Square Capital program.
Square Capital enables businesses to sell a specific amount of their future card sales to Square in return for a lump sum payment. Businesses automatically pay Square back as a set percentage of daily card sales. That way they pay more when sales are strong and less when they're not.
The company says it has extended nearly $50 million to over 10,000 businesses so far. With the Victory Park Capital news, it would appear that they're just getting started.
"We are pleased to be partnering with Square and believe they are uniquely positioned to serve their merchant base with another best in class product,” said Victory Park Capital partner and co-founder Brendan Carroll and managing director Dan Schwartz. “We've been tremendously impressed with Square Capital’s data-driven approach to merchant finance, and we are confident they will achieve substantial growth in a dramatically underserved market."
According to Square, merchants using Square Capital have processed over $1 billion with Square, and have used funds to buy equipment and inventory, hire employees, and add new stores.
Image via Square