SumUp secures $100m credit facility for new cash advance product
The new product will support merchants in the UK first before being rolled out in Europe.
Fintech unicorn SumUp has secured a $100m credit facility to expand its advance payments to merchants.
With the credit facility from Victory Park Capital (VPC), which shared just yesterday that it gave credit card fintech Petal a $200m debt facility, it will introduce the new product first to the UK and then to other European markets.
‘SumUp Cash Advance’ will help merchants finance their operations and act on growth opportunities.
The advances will be up to £20,000 and be based on merchants’ payment history, with merchants paying back advances through payment acceptance with SumUp card readers, according to the company.
“Since SumUp launched in 2012, we have witnessed a transformative evolution in merchant needs. In response, we have continually invested in new, sector-leading innovations, from pioneering hardware to cutting-edge software solutions,” SumUp co-founder Marc-Alexander Christ said.
Christ said that feedback has so far been positive, with merchants appreciating the product’s simplicity and payout speed.
“Our cash advance product can support business growth in a transparent and fair manner, enabling merchants to continue doing what they do best, without having to worry about accessing funds,” he added.
Merchants will pay a fixed fee to access cash advances, which could be used for a range of cases, from upgrading equipment to stocking up on inventory ahead of busy periods to supporting renovations.
“SumUp is a global fintech leader with a data-driven approach and product suite that matches the needs of modern businesses,” VPC partner Jason Brown said.
“We are delighted to partner with SumUp as they expand their offering and provide merchants with fair and clear, short-term financing amidst a challenging market climate.”