One of the biggest issues small businesses face is the need to access working capital. While many small businesses may have large amounts of accounts receivables, having a robust cash flow is important for growing businesses looking to expand. Square Capital, the lending arm for payment processing company Square, has partnered with eBay to offer lending options for small businesses. “Starting in the third quarter, merchants on the site can apply for a loan as small as $500 and up to $100,000 to help with everything from payroll and inventory to equipment and marketing.”
The focus will be on underserved businesses in need of capital by offering “U.S. sellers a “seamless funding experience.”” This is according to Jacqueline Reses, the head of Square Capital. According to CNBC, as many as 70 percent of small business merchants didn’t receive the funding they wanted in 2017. The new option from Square Capital will look to help an industry with solid revenue metrics, but struggles in the operating and wages expenses.