Square Banking Launched for Small Businesses

Square, providers of tools designed to empower small businesses, has launched a new suite of financial products designed to help small businesses manage cashflow and grow their business.

Known as Square Banking, the suite is aimed at providing small businesses with affordable and accessible automation banking tools to help them streamline operations and compete with larger businesses.

Square Banking Launched

The suite comprises of three products, Square Savings, Square Checking and Square Loans. Square Loans is an FDIC-insured deposit account designed to make depositing funds quick and easy. Square Checking provides merchants with an FDIC-insured account with instant access to their sales. Square Loans refers to Square’s existing lending capability, offering eligible businesses financing options.

Managing and Building Cash Reserves

The financial solutions offered by Square Banking provide small businesses with a simpler, more efficient way to manage cashflow and start or continue to build their cash reserves. Such financial management proficiency is even more important today as small businesses continue to recover following the immense disruption caused by the pandemic.

Christina Riechers, Square Banking’s Head of Product, commented on the need for small business owners and entrepreneurs to have access to the right financial support:

“Small businesses are the heartbeat of our communities and our economy. From our earliest days, Square has focused on building easy-to-use tools and services to empower entrepreneurs to succeed on their own terms.

“Historically, small businesses have had to contend with numerous hurdles while trying to access vital financial services that are often readily available to larger companies. With Square Banking, we’ve reimaged the financial system for small business owners with their cash flow needs at the center.

“We’re introducing fair, accessible financial services that connect directly with our sellers’ payments, helping them unlock instant access to their sales, automate their savings, and receive personalized financial offerings,” Riechers added.

Managing Cashflow with Greater Ease

Trying to stay on top of managing cashflow can be a challenge for many small businesses. Powered by Square Financial Services, Square Savings automates savings, thereby removing the many obstacles of setting funds aside.

The feature allows businesses to save a percentage of every Square sale they make. Merchants can also create customizable folders, which they can use to save for specific priorities or goals. Such goals might be to have the money to use on marketing campaigns or for purchasing new equipment – items and projects that can help nurture growth.

Building Banking Tools with Square Checking

Square Checking builds on Square’s existing banking tools for businesses, including the Square Debit Card. In partnership with Sutton Bank, the Square Checking solution offers sellers an FDIC-insured checking account. With the account, businesses have access to the card sales they process via Square instantly. Via Square Checking, merchants can spend their funds with the Square Debit Card. They can also use their balance to pay teams with Square Payroll, thereby making processes more efficient and streamlined. Businesses can also move funds between their Square Savings and Square Checking accounts at no extra cost.

Credit with Square Loans

Having access to credit is crucial to help small businesses get off the ground, grow and succeed.  Despite the need for cash injections, less than half of small businesses say their credit requirements are met, as reported by the Federal Reserve.

Square Loans – formerly Square Capital – provides small businesses with financial support via small business loans and Paycheck Protection Program loans.

Square’s new Square Banking suite is aimed at helping small businesses navigate the many unforeseen challenges that inevitably occur when running a business through the right financial support and lending.

Image: Depositphotos

This article, "Square Banking Launched for Small Businesses" was first published on Small Business Trends