FundKite executives watched the small-business lending sector evolve – and determined that the trend of mobile point of sale providers offering loans and cash advances was limiting the market.
The likes of Square and PayPal have been using their mobile point of sale devices as both a measure of creditworthiness and a means of repayment. Square Capital, for example, bases its offer on the revenue it observes being collected through Square hardware; it then collects repayments as a portion of future Square payments. FundKite looked at this model and asked: What about the merchants who don’t want to limit themselves to the funding options of a single mPOS provider?
Deploying a network of more than 1,000 independent sales organization partners to reach small merchants, FundKite operates under the premise that these brick-and-mortar businesses need an option to obtain funds quickly without any strings attached as to what devices or marketplaces they are using. Otherwise, its merchant cash advance and repayment model isn’t very different from what Square and PayPal offer.
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