Square Loans Originated $1.01B in Q2

Square Loans originated $1.01B in the second quarter, up from $756M in Q1. During the earnings call, Block (formerly Square) CFO Amrita Ahuja said that the company is using the discipline it maintained on risk with Square Loans with other growing segments of its business. The fact that its business loans are short duration has been key to that success, the company said.

“The unique structure of our products is really designing our products to simplify access to capital for customers and to make it easy to pay them back,” Ahuja explained. “These products are generally short duration, and they have a simplified repayment process, including, for some products, being first in that payback priority. And these generally are short-duration. Square Loans is well less than a year in terms of duration.”

The company trumpeted a loss rate on Square Loans that has remained under 3%.