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$209.43 -11.2  -5.1%

Last Trade - 4:35pm

Sector
Industrials
Size
Large Cap
Market Cap £71.05bn
Enterprise Value £71.11bn
Revenue £9.32bn
Position in Universe 122nd / 6853

Square extends lending arm to Australian small businesses

Wed 14th April, 2021 5:01am
April 14 (Reuters) - Square Inc  SQ.N  will begin providing
loans to small businesses in Australia, the payments firm said
on Wednesday, where it will compete with the country's big banks
in lending to small and medium enterprises in a tight market.
    National Australia Bank  NAB.AX  is currently the country's
biggest SME lender, followed by Commonwealth Bank of Australia
 CBA.AX . However, the banks' loans often require to be backed
by security.
    "Many small-business advocates have acknowledged that
traditional lending processes in Australia aren't flexible
enough for small businesses," said Samina Hussain-Letch, head of
industry and payments, Square Australia.
    "Overly onerous and lengthy processes from big banks will
act as a deterrent to small businesses and will force many to
borrow from less secure means. What we're bringing to market
solves that issue."
    Square Loans would use transaction data to allot quick loans
as early as the next day, with one upfront fee repaid
automatically based on a percentage of daily sales, the company
said.
    Square did not disclose its market share of payment
terminals in Australia but said as of December 2020, the number
of active sellers using its platform in the country had grown at
an average of 92% annually since it began offering payments in
2016.

 (Reporting by Arundhati Dutta in Bengaluru; Editing by Shailesh
Kuber)
 ((Arundhati.Dutta@thomsonreuters.com))
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