Block on Trump's Asylum Ban Upheld by Supreme Court
Square, the mobile payment company used by many small businesses to process credit card transactions, is looking to help out small businesses in an entirely new way.
The San Francisco company has launched Square Capital, which will advance cash to small businesses who need it.
There's a catch, however.
As reported by Mashable, the new Square Capital service won't be taking applications for cash advances. Rather, the service will be contacting businesses that already use Square's payment technology that the tech company feels may be in need of a cash infusion. Using the data provided by the companies' Square sales, Square Capital will offer each company a unique loan offer with payments to be taken from future Square sales.
Square Capital joins a growing list of ways to finance a small business. And unlike many of the more traditional forms of financing, like bank loans, Square Capital isn't afraid of a risky venture. As Square engineer Gokul Rajaarm told Mashable, most of the companies involved in Square Capital's pilot program were turned down for loans from banks. By relying on their own internal figures, Square Capital plans to service those businesses that may not look so hot on paper, but are primed for growth.
Square Capital is just the latest attempt by Square to capitalize on their thriving, but low-margin mobile payment business. Square Cash, announced last year, allows individuals and businesses to send money to one another online.
However, like many other tech companies, as Square has ventured into other sectors of finance, it has encountered some unforeseen legal troubles. Square has also had its fair share of failures, including the recently shuttered Square Wallet.
According to Square, 85 percent of the businesses involved in the Square Capital pilot program reported that they would recommend the service to a friend.
Follow FindLaw for Consumers on Google+.
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
Sign into your Legal Forms and Services account to manage your estate planning documents.Sign In
Create an account allows to take advantage of these benefits: