Square is expanding its loans offering to small businesses outside of its payments processing ecosystem. Through a partnership with restaurant management platform Upserve, Square Capital will for the first time allow businesses that do not already use its point-of-sale (POS) technology to apply for loans.
The move follows a strong second quarter for the company where it exceeded Wall Street’s revenue expectations and Square Capital increased its loan volume 123% year on year.
Through the deal Square will gain access to Upserve’s 7,000 customers as well as their data. Square says it will use the data with its own machine learning models to better understand customers and use it to make decisions on loans and follow-on funding.
The loans will be offered through Upserve’s smart management platform. Restaurants can pay them back thought a fixed percentage of their daily sales.
Upserve has raised $40.5m to date from investors including prominent names such as Index Ventures, First Round and Greylock Partners.
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