TORONTO–(BUSINESS WIRE)–Today, Square announced the launch of Square Loans in Canada, giving small businesses quick and easy access to funds and eliminating another major problem associated with running a business.
Using transaction data, Square Loans proactively delivers personalized offers to eligible sellers, providing them with a simple, paperless application process and delivering funds the next business day. Businesses have a clear, up-front loan fee, which is automatically repaid as a set percentage of daily card sales with Square – so sellers repay more when sales are strong and less during slower times . Loan fees never increase for the seller, so it’s always clear how much they owe.
Désirée Kretschmar, the owner of Factory Goals, a thriving plant store in Peterborough, Ontario, said Square Loans offers easy-to-access financing that helps her grow her business. “Our store was only 85 square feet, I could reach out and touch both walls. We grew very quickly in those first few months and signed a lease to move to a bigger location; the next day the pandemic hit, but we’ve been running headfirst ever since – offering in-person, online sales and delivery,” said Desiree, who has since accessed Square Loans to buy more plants and accessories to keep up. strong demand from customers looking to green their homes.
“Square Loans is so easy. Everything is laid out and presented in an accessible way, as opposed to… the fun that another financial institution might give you,” explained Désirée, who says she also faced skepticism when she visited a traditional financial institution in town, before opting for Square Loans.
92% of Canadian business owners who have received traditional loans find the process daunting
A recently published survey commissioned by Square1 shows that about 7 in 10 Canadian small business owners have never had access to traditional financing, preferring to “start it alone”. According to the survey, 46% admitted that they were forced to rely on personal credit cards; while one in five have accessed loans from friends and family to run their business in the past.
Although small and medium-sized businesses are often hailed as the backbone of the Canadian economy, creating up to 60% of the country’s jobs, access to affordable financing is an unmet need that Square Loans was designed to address. The survey found that 92% of business owners who had received traditional business financing found the process “daunting”, while 84% said traditional business loans were too “complicated”. Overall, 72% said they were unhappy with the repayment process for traditional loans.
83% of small business owners say the pandemic has made access to business loans more critical
A third of small business owners in Canada said managing their business through the pandemic has been “challenging”, but they are “proud to have succeeded so far”. More than eight in ten entrepreneurs (83%) surveyed said the pandemic has made access to business loans more critical than ever, while 51% said the current business climate was a top concern when considering traditional loan repayments.
“It’s no secret that small and medium-sized businesses face huge hurdles when it comes to accessing funds to help them transition and grow. As the pandemic subsides and Canadian business owners look to the future, they need help moving forward more than ever,” said Luke Voiles, GM Business Banking at Square.
“Since our inception, Square has been focused on creating easy-to-use tools and services to empower entrepreneurs to succeed on their own terms,” said Alyssa Henry, head of Square, adding that 48% of entrepreneurs surveyed say they are happy to be eligible for easy, next-day access to a business loan with flexible repayments. Almost a third of respondents (29%) believe it would help them feel less stressed as they move forward and seek to grow their business long after the pandemic.
Since the initial launch of Square Loans in the US and Australia, Square has provided over $9 billion in financing to over 460,000 businesses, with an average loan size of $6,750.2. In Canada, business owners can learn more and apply for Square Loans by visiting square.ca/loans.
1 A survey was conducted by Leger among 300 Canadian small business owners/decision makers, between March 22-27, 2022, using an online panel. The survey has a margin of error of ±7.4%.
2 Figures include merchant cash advances and business loans granted by Square to US and Australian sellers between May 2014 and March 2021.
About Square
Square helps sellers manage and grow their businesses more easily with its integrated ecosystem of commerce solutions. Square offers purpose-built software to manage complex restaurant, retail and professional services operations, versatile e-commerce tools, integrated financial services, buy-it-now, pay-later functionality through Afterpay, personnel management and payroll, and much more. work together to save sellers time and effort. Millions of sellers around the world trust Square to power their business and help them thrive in the economy. Square is part of Block, Inc. (NYSE: SQ), a global technology company specializing in financial services. For more information, visit www.squareup.ca.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact may be deemed to be forward-looking, including but not limited to Limit thereto, statements regarding Expected Benefits of Square Loans to Customers. Risks that contribute to the uncertain nature of forward-looking statements include, among others, the risks and uncertainties relating to Block, Inc. (the “Company”) listed or described from time to time in the Company’s filings with the Securities and Exchange Commission. (the SEC), including the company’s most recent annual report on Form 10-K or 10-Q, which is filed with the SEC. All forward-looking statements are based on information and estimates available to the Company at the time of this press release. Except as required by law, the Company assumes no obligation to update the statements contained in this press release.
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