I recently received an email from Square Capital, a new pilot program by Square. The new program is designed to assist small business owners by giving business owners a chance to secure cash against their future credit card transactions. In short, Square Capital is a merchant cash advance program.
I received the pilot program invite for one of my three SquareUp accounts.
About Square Capital Merchant Cash Advance
Based on the email I received from Square Capital, there are three different options that business owners can choose from. Here’s a look at the three tiers offered by Square;
- 4% of credit card sales
- 7% of credit card sales
- 10% of credit card sales
As I mentioned previously, the %’s above would be guaranteed from the business’s future daily credit card transactions. The % that the business agrees to would be taken from future cc transactions until the loan is paid in full.
In addition to the daily %, there is a one time fee for borrowing money from Square Capital. The fee is also based on which cash tier the business owner decides to borrow.
On the Way Out
As much as I appreciate the pilot program invite from Square, I’m not into loans against future business transactions, so I won’t be testing the Square Capital program first-hand.