This follows a trend we’ve seen elsewhere in the online payments realm — Square has offered Square Capital to U.S. businesses for some time, while PayPal has been doling out loans to small businesses, too.
iZettle says that there are no payback deadlines, and the automated repayments vary in accordance with the merchant’s sales. The company says the advance comes with a fixed fee attached to it, rather than a percentage interest rate, though it hasn’t divulged what that fee is.
““We have aimed to build a financing service that’s completely tailored to the needs of small businesses,” explains Carl-Richard Häggman, iZettle’s chief risk officer. “The service allows for small businesses to make the necessary investments in their operations, on their own terms and with minimal administration.”
Part of the company’s new $60 million cash influx will be used to help support the rollout of iZettle Advance, as well as fueling the company’s overall business.
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