Square, the popular company that assists small business owners in processing mobile payments, took the new step in supporting the business community. On May 28, 2014, Square Capital was launched. The company will now offer businesses cash advances against future sales.
Square claims that under the pilot program that preceded the official announcement of Square Capital,”thousands of merchants” were provided cash advances in the “tens of millions.” Square Capital will determine how to provide cash advances to different small businesses based around the data on how the business has performed in the past.
While this may seem like a possible fix-all to cash flow problems from entrepreneurs, they should be aware of the potential drawbacks of Square Capital. Paying back a loan of $10,000 for example, requires that you earn $11,000 or more through sales made through the app. Moreover, not all businesses will have the potential to access the loans offered by Square Capital-it is a matter of being picked and approved for a loan rather than qualifying.
Overnite Capital doesn’t have the same level of restrictions when providing the financing business owners need with flexible and fair pricing. We aim to create a positive environment for all our clients and focusing on the team-oriented mentality you want and deserve from a financial partner. Call 1-800-957-4309 or press the Contact Us button, today!