Square confirmed that it is bringing its lending program to the small business clients operating in Canada. Square Loans utilize transaction data to proactively offer customized services to the eligible sellers, without the need for any paperwork, and money is delivered as soon as the next business day.
Businesses have a single upfront loan fee that is automatically paid back as a set percentage of daily card sales with Square. Since its launch in Australia and the United States, Square Loans has offered at least USD$9 billion in financing to over 460,000 businesses, with an average loan size of USD$6,750.2.
It is now moving its operations into Canada, where, based on a Square-commissioned survey, 46% of SMEs are bootstrapping by relying on personal credit cards and 92% find the traditional loans process intimidating.
The owner of Plant Goals, Désirée Kretschmar, said:
“Square Loans is so easy. Everything is laid out and it’s presented in an approachable way, as opposed to… the rigmarole another financial institution might put you through.”