iZettle opens up cash advances to small business owners
Card payment company has entered alternative finance market with service which will enable merchants to get advances on future card sales
Mobile card payment specialist iZettle has made its “first foray” into alternative funding with the launch of a cash advance service aimed at small businesses across Europe.
Set to tackle start-up cashflow worries, iZettle Advance will allow merchants to receive cash advances “within days” which they pay back as a “fraction” of daily card sales with the ablility to set up their own payback terms.
The cash advance will require a fixed fee but there are no additional fees if the payback takes longer than expected and repayments will be fully automated.
The news coincides with the mobile payment company's announcement of a €60m Series D round of funding which it will use to develop and expand the ‘advance' service.
Carl-Richard Häggman, iZettle's chief risk officer, said of the launch:
“We have aimed to build a financing service that's completely tailored to the needs of small businesses. The service allows for small businesses to make the necessary investments in their operations, on their own terms and with minimal administration.
iZettle CEO and co-founder, Jacob De Geer, added: “We want small companies to thrive, and with iZettle Advance we're applying the exact same logic as when we started iZettle five years ago, and completely overhauled card payments acceptance for small businesses.”