Square Capital Expands SMB Loan Access To Third Parties

Invoice2go and Square Capital announced late last week they inked a partnership in which Invoice2go customers can access funding from within the Invoice2go app.

In a press release, the companies said the partnership marks the first time Square Capital, the small business loan program developed by Square, has inked a partnership in which customers get embedded access to business loans via a mobile app. “By partnering with Invoice2go, via our new APIs, we can now bring the end-to-end loan application experience directly inside their mobile app,” said Nicolas Chinot, product manager at Square Capital, in the press release. “This integration enables us to meet small businesses right on the phone or tablet where they manage their business, and goes even further in taking the ‘work’ out of applying for funding.”

According to the companies, Invoice2go will be able to access loan offers ranging from $500 to as high as $100,000. With more than half of the company’s customers in building and home services industries, the partnership with Square Capital should improve access to financing for those that are working on large home improvement projects. Contractors can apply for funding to cover up-front expenses to get the jobs started quicker.  What’s more, small business owners won’t have to fill out long forms or wait long periods of time to find out if they are approved. They can start the application in the Invoice2go app and upon approval receive the funds into their accounts as soon as the next business day. Repayment is automatic, noted the companies in the press release.

“Access to capital can be the largest obstacle standing in the way of growth for many small businesses. In fact, according to a Federal Reserve survey, a staggering 70 percent of small businesses that apply for traditional loans do not receive the funding they want,” said Greg Waldorf, CEO of Invoice2go, in the press release. “Partnering with Square Capital means we can help more one and two-person businesses access the funding they need to buy equipment, invest in marketing, hire staff, or invest in anything else their business needs to grow.”



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.