Square has launched Square Loans in Canada, giving small businesses streamlined access to funds by creating customized offers to eligible sellers and giving them a straightforward application process, according to a Thursday (April 28) press release.
The revamped process is free of paperwork and delivers funds as quickly as one business day with an upfront loan fee that’s automatically paid back as a percentage of daily card sales with Square, per the announcement. That allows sellers to pay back more when sales are strong and less during slower times and with a constant loan fee.
More than 9 out of 10 Canadian businesses (92%) that went through the traditional loan process find the process intimidating, according to the press release. A survey commissioned by Square shows that about seven in 10 Canadian small business owners have never accessed traditional funding.
Almost half (46%) say they rely on personal credit cards, while 1 in 5 have accessed loans from friends and family to keep their business going.
The survey also shows that 84% said traditional business loans were overly “complicated,” according to the business owners who applied for them. Almost 3 out of 4 (72%) reported they were not happy with the repayment process for traditional loans.
“It’s no secret that small and medium-sized businesses face tremendous barriers when it comes to accessing funds to help them transition and grow,” Luke Voiles, GM business banking at Square, said in the press release. “As the pandemic eases and Canadian business owners look to the future, they need help moving forward now more than ever before.”
Since the launch of Square Loans in the U.S. and Australia, Square has provided more than $9 billion in financing to more than 460,000 businesses, with an average loan size of $6,750, according to the press release.
Related: Square Launches Loyalty, Marketing Products in Ireland
In March, Square launched Square Marketing and Square Loyalty, a pair of software products that will help businesses in Ireland increase their sales and build customer loyalty in a few clicks.
Square Marketing “allows businesses to create, send and track email marketing campaigns in minutes,” ranging from one-time email campaigns to personalized automations. The tool will help businesses to expand their customer reach and use analytics to secure business insights.
Square Loyalty “can help turn one-time visitors into regulars and increase repeat visits,” the company press release said. It includes a customized loyalty program that rewards customers both in-store and online.
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