Square expanded its reach last week with the launch of Square Capital, a new program aimed at helping businesses grow by providing them with a source of funding.
Businesses enrolled in the program give up a set percentage of future daily card sales, in addition to normal processing fees, to pay towards their balance.
Fees are adjusted to the individual merchant, and the amount owed never changes—the company notes that funding through Square Capital is not a loan because there is no associated interest rate. No application is required, and businesses may receive requested funds as soon as the next day.
According to Square, the pilot program has already provided millions in capital to enrolled businesses. The company said businesses used the funds to purchase new equipment and inventory, increasing hiring and open new locations.
Businesses eligible to enroll in the program will be invited through the Square Dashboard and via the email provided during registration.