Fintech Square Inc Set to Launch Lending Program for Australian SMEs

Card payments and fintech company Square announced that it is set to launch Square Loans in Australia. Square Loans is a program formulated to help small and medium enterprises (SMEs) grow by providing them simple and quick access to funds. 

According to Square, Australia will be the first country outside of the U.S. where it plans to expand its small and medium business loans to. 

SEE ALSO: UK-based Fintech Gro Raises $7.1 Million from Northzone VC

How will it work?

Square intends to utilize historical transactional data and create a relatively simple process. The process will involve no paperwork and applicants will get access to their money as early as the next business day. 

The US-based company explained that small businesses will be charged with an upfront loan charge. This can be repaid effortlessly as a fixed portion of card sales on Square. 

As a result of this model, companies will be able to repay more money when sales are doing well, and pay less when the business starts to slack. 

According to Samina Hussain-Letch, Head of Industry and Payments, Square Australia, said that typically, small businesses have faced difficulties while accessing different forms of funding. Square Loan will address this challenge. 

Square’s loan business in the U.S.

Before venturing into Australia, Square’s loan business has achieved success in the U.S. 

According to Square, the company has assisted with an upward of $8 billion in financing more than 4,35,000 small businesses. 

Square is confident that it will meet with the same fate in Australia as small businesses are increasingly turning to the platform for financial aid. 

Australia’s lending market

Australia’s lending market has witnessed considerable activity over the past year particularly due to the COVID-19 pandemic. 

Small business financing has continually faced several challenges in the past across Australia. However, the arrival of new financing alternatives is gradually transforming the landscape.

As per research conducted by Square, more than 50% of the small businesses in Australia have faced the repercussions of the COVID-19 pandemic. 

Besides, as the country gradually recovers from the pandemic, Square believes that around 20% of small to medium-sized businesses are likely to apply for a loan in the upcoming months. 

Image Source: Square

Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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