The introduction of Square Loans offers Canadian companies quick and easy access to funds
46% of Canadian SMBs are bootstrapping by relying on personal credit cards; 92% find the traditional lending process intimidating and 84% find it complicated
TORONTO, April 28, 2022–(BUSINESS WIRE)–Today, Square announced the launch of Square Loans in Canada to provide small businesses with quick and easy access to funds and to eliminate another major problem associated with running a business.
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Désirée Kretschmar, the owner of Plant Goals in Peterborough, Ontario, said Square Loans offers easily accessible financing to help it grow its business. (Photo: Business Wire)
By using transaction data, Square Loans proactively displays tailored offers to qualified sellers, offers them a hassle-free application process that requires no paperwork, and delivers funds the next business day. Businesses have a clear upfront credit fee that’s automatically paid back as a set percentage of daily Square card sales — so sellers pay back more when sales are strong and less when sales are slow. The credit fee never increases for the seller, so the amount owed is always clear.
Désirée Kretschmar, owner of plant targets, a thriving plant shop in Peterborough, Ontario, said Square Loans offers easily accessible financing to help it grow its business. “Our shop was only 85 square meters, I could reach out and touch both walls. We grew super fast 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 up and running ever since, offering online in-person sales and delivery,” said Désirée, who has since accessed Square Loans to buy more plants and supplies to keep up with the to keep up with strong demand from customers who want to make their homes greener.
“Square Loans is so easy. Everything is laid out neatly and presented in an accessible way, unlike… the rigamarole that another financial institution might put you through,” explained Désirée, who says she also encountered skepticism when she visited a traditional business financial institution in the city, before you decide on square loans.
92% of Canadian business owners who have received traditional credit find the process intimidating
A newly released poll commissioned by Square1 shows that approximately 7 in 10 Canadian small business owners have never resorted to traditional financing and prefer to “boot alone”. According to the survey, 46% admitted they were forced to rely on personal credit cards; while one in five has in the past resorted to loans from friends and family to keep their business afloat.
Although small and medium-sized businesses are often touted as the backbone of Canada’s economy, they make it to the 60% of the country’s jobs, Access to affordable finance is an unmet need that Square Loans was created to address. The survey found that 92% of business owners who had obtained traditional business financing found the process “intimidating,” while 84% said traditional business lending was overly “complicated.” Overall, 72% said they were dissatisfied with the traditional loan repayment process.
83% of small business owners say the pandemic has made access to business credit more critical
A third of Canadian small business owners reported that running their business has been “challenging” during the pandemic, but they are “proud to have made it so far”. More than eight in 10 entrepreneurs surveyed (83%) said the pandemic makes accessing business credit more important than ever, while 51% said the current business climate is a top concern when considering traditional loan repayments.
“It’s no secret that small and medium-sized businesses face enormous barriers when it comes to accessing finance to help them transition and grow. Now more than ever, as the pandemic subsides and Canadian business owners look to the future, they need help to move forward,” said Luke Voiles, GM Business Banking at Square.
“From the start, Square has focused on creating easy-to-use tools and services that enable entrepreneurs to be successful on their own terms,” said Alyssa Henry, Square’s director, adding that 48% of surveyed entrepreneurs say that they feel positive entitled to easy, next-day access to a business loan with flexible repayments. Almost a third of respondents (29%) believe moving forward and trying to grow their business long after the pandemic would help them feel less stressed.
Since launching Square Loans in the US and Australia, Square has provided more than $9 billion in financing to more than 460,000 companies with an average loan size of $6,7502. In Canada, business owners can learn more and apply for Square Loans by visiting square.ca/loans.
1 A survey was conducted by Leger of 300 Canadian small business owners/decision makers between March 22 and March 27, 2022 using an online panel. The survey has an error rate of ±7.4%.
2 The numbers include merchant cash advances and business loans Square made to sellers in the US and Australia between May 2014 and March 2021.
Square helps sellers run and grow their businesses more easily with its integrated ecosystem of commerce solutions. Square offers purpose-built software for complex restaurant, retail, and professional services businesses, versatile e-commerce tools, embedded financial services, buy now and pay later capabilities via Afterpay, human resource management and payroll capabilities, and more—all working together to deliver sellers save time and effort. Trusted by millions of sellers around the world to grow their business and help them thrive in business. Square is part of Block, Inc. (NYSE: SQ), a global technology company focused on financial services. For more information visit www.squareup.ca.
Safe Harbor Declaration
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 forward-looking, including, without limitation, statements regarding expected benefits of square loans for clients. Risks that contribute to the uncertainty of forward-looking statements include, among others, risks and uncertainties related to Block, Inc. (the “Company”), which are listed from time to time in the Company’s filings with the Securities and Exchange Commission or (the SEC), including the company’s most recent annual report on Form 10-K or 10-Q on file with the SEC. All forward-looking statements are based on information and estimates available to the Company as of the date of this press release. Except as required by law, the Company assumes no obligation to update the statements in this press release.
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