Square now offering cash advances to small businesses

Mobile payments processor Square yesterday announced Square Capital, a merchant cash advance service for small businesses.

The service offers cash advances, rather than traditional loans. Already, the company has extended "tens of millions of dollars" to thousands of customers, a Square spokesperson told Fox Business.

Through the service, Square charges a flat fee on the amount of cash extends, but not interest. An example provided by the company called for a $1,000 fee for a $10,000 cash advance.

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