Square Capital Funded $318M in Q2

Square’s small business lending arm, Square Capital, issued 49,000 business loans for a total of $318 million in Q2, according to their earnings report. That’s a quarter-over-quarter increase of 26.7% and slightly more than half the loan volume that their rival OnDeck originated in Q1. That statistic is significant because Square is a payment processor first and a lender second while OnDeck is only a lender.

Square had a net loss of $16 million in the second quarter on $552 million in revenue. The stock price has nearly doubled year-to-date, according to the deBanked Tracker.

32% of Square Capital users say they are using the funds to purchase equipment or open a new store. 31% say they are using it to purchase inventory while 23% say it’s to fund day-to-day general & administrative expenses and marketing expenses.

In December 2016, deBanked received a $35,000 loan from Square, the experience of which was detailed in the Jan/Feb Magazine issue.