"Victory Park has been a great partner for us in every sense of the word. They are collaborative, creative and eager to help us find solutions. I would gladly recommend them to any company looking for a strategic capital provider to help grow their business."
– Al Goldstein, CEO
Avant Credit Corporation
SAN FRANCISCO, August 19, 2014 — Square has secured an investment from Victory Park Capital to significantly expand Square Capital. This small business financing program helps businesses grow by giving them access to funds in a quick and simple way. The investment will allow Square to extend hundreds of millions of dollars to tens of thousands of additional sellers who need capital to grow.
Square has extended nearly $50 million to more than 10,000 independent businesses. Square’s data offers a unique and holistic understanding of a business’ sales history, growth, cash flow, and financial needs, enabling it to effectively offer capital to a wide array of companies.
The opportunity for continued growth within the small business financing space is significant. More than a third of merchants who have completed their first Square Capital advance have renewed for a second round of capital to make additional investments in their business.
"We are pleased to be partnering with Square and believe they are uniquely positioned to serve their merchant base with another best in class product,” said Brendan Carroll, partner and co-founder, and Dan Schwartz, managing director with Victory Park Capital. “We've been tremendously impressed with Square Capital’s data-driven approach to merchant finance, and we are confident they will achieve substantial growth in a dramatically underserved market."
Square Capital merchants have already processed more than $1 billion with Square and have used funds from the program to buy equipment and inventory, hire more employees, and add new stores. San Francisco’s Follicle Hair Salon used Square Capital to move into a larger space and add 12 new salon chairs, which each chair bringing in between $5,000 to $8,000 a month.
With Square Capital, businesses sell a specific amount of their future card sales to Square and in return the seller receives a lump sum payment. Businesses automatically pay Square as a set percentage of daily card sales, so they pay more when sales are strong and less if things slow down. Square leverages its data-driven understanding of each business to develop unique offers for businesses with the expectation that sellers will complete their advance in approximately 10 months, although there is no set time frame. The cost to the seller never changes, regardless of how long it takes to pay Square.
Square helps anyone take care of their business. Square's complete register service is a full point of sale with tools for every part of running a business, from accepting credit cards, to sales and inventory tracking, to small business financing. Customers also use Square Cash, the easiest way to send and receive money, and Square Order, a new way to pre-order food and drinks for pickup. Founded in 2009 and headquartered in San Francisco, Square is currently available in the United States, Canada, and Japan. firstname.lastname@example.org
Victory Park Capital (VPC) is a privately held registered investment advisor dedicated to alternative investing through the management of private investment funds. As specialists in credit and private equity investments, VPC focuses on middle market companies across a diversified range of industries. Whether as a lender or a control investor, VPC seeks to identify opportunities where it believes the potential for reward outweighs the risks entailed. Founded in 2007, VPC is headquartered in Chicago with additional resources in Boston, New York, Los Angeles and San Francisco. Media Contact: Taylor Trovillion, 312-240-2908, email@example.com