Square is expanding one of its budding products aimed at startups and small businesses, but this time it isn't a new payments app.
Square Capital, a financing program for SMBs, received an investment of its own from Chicago-based Victory Park Capital, a firm with an eye on small to mid-size businesses.
Financial terms of the investment have not been disclosed.
Despite recent speculation about the stability of Square's own bottom line pending an expected IPO (pressing Square to even issue a top 10 list aiming to debunk rumors), Victory Park Capital leaders defended "Square Capital’s data-driven approach to merchant finance."
Square Capitalas an alternative to traditional bank lending, promising far fewer hassles such as lengthy applications, turnaround wait times, and expensive fees.
The cash-enabled entry way to the business world also serves another purpose being that it can bring in more businesses onto the Square platform from the beginning of their lifecycles.
Since launching in May, Square Capital has already doled out nearly $50 million in financing to more than 10,000 independent businesses.
From there, the San Francisco-based company touted, Square Capital merchants have already processed more than $1 billion through Square's payments infrastructure while also using funds to upgrade equipment, grow their workforces, and build new stores.