US-based financial services firm Square has launched its loan offering for small business owners in Canada.
The proposition, called Square Loans, uses transaction data to provide bespoke offers to eligible customers.
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Square says the loan application process is simple, does not require paperwork and funds can be transferred as early as the next business day.
Customers are charged an upfront loan fee, which is automatically deducted based on the daily card sales with Square.
According to a survey commissioned by Square, seven out of ten small business owners in Canada have never accessed traditional funding.
The survey also revealed that 92% of business owners who had accessed funding from traditional sources, found the process “intimidating” and 84% said traditional business loans were overly “complicated”.
Square GM business banking Luke Voiles said: “It is no secret that small and medium-sized businesses face tremendous barriers when it comes to accessing funds to help them transition and grow. As the pandemic eases and Canadian business owners look to the future, they need help moving forward now more than ever before,” said
Square Loans, which already has a presence in the US and Australia, is said to have offered over $9bn in loans to more than 460,000 clients till now.
In August 2021, Square brokered a deal to buy Australian buy-now pay-later (BNPL) firm Afterpay in a deal valued at approximately $29bn.
Square is part of Block, a technology firm, which is focused on offering financial services.
