Square announced on Tuesday that it had struck a deal with Victory Park Capital, a firm that has backed several alternative lending companies, to expand its own merchant cash advance program Square Capital. The deal will see Square give up a cut of the revenue it generates from cash advance fees in exchange for getting the capital from Victory Park to be able to offer cash advances to more Square business customers. Through Square Capital, businesses get a lump sum cash advance from Square in exchange for a specified cut of daily transactions made with credit or debit cards. Square said it had already provided about $50 million in cash advances to around 10,000 businesses.
Square Gets Money to Expand Square Capital Merchant Cash Advance Program
Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.
This article originally appeared on Recode.net.
