This week global fintech company SumUp announced that it has entered into a US$100 million credit facility with Victory Park Capital, an alternative investment firm specialising in private credit.
Founded in 2012, SumUp is the financial partner for more than 4 million small merchants in over 35 markets worldwide, helping them start, run and grow their businesses.
Through its Super App, SumUp provides merchants with a free business account and card, an online store, an invoicing solution, and in-person and remote payments seamlessly integrated with SumUp’s card terminals and point-of-sale registers.
Cash advances help businesses accelerate operations and deal with emergencies
SumUp Cash Advance helps merchants finance their operations and seize growth opportunities for their businesses. The advances (of up to £20,000) are based on merchants’ payment history and are paid back incrementally with a transparent, fixed fee for access to cash advances.
The advances can be used for purposes such as upgrading machinery and equipment, procuring vital inventory in anticipation of busy periods, supporting transformative renovations to revamp facilities or capitalise on strategic growth prospects.
Or the cash advance product can also be used to deal with emergencies, such as unforeseen equipment break-downs, helping to alleviate short-term pressures.
The credit facility will enable SumUp to provide advance payments to merchants based in the UK in the immediate term and in other European markets soon.
Marc-Alexander Christ, Co-Founder at SumUp, said:
“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.
We are thrilled to partner with Victory Park Capital, further enabling our mission of simplifying business operations for our merchants.
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. Feedback has been positive to date; merchants appreciate the simplicity of the product, the speed of payout, and its convenient way of paying back the cash advance via card reader sales.”
Jason Brown, Partner at VPC, said:
“We are dedicated to supporting forward-thinking, innovative companies that enable wider access to financing solutions for small businesses.
SumUp is a global fintech leader with a data-driven approach and product suite that matches the needs of modern businesses. 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.”
Take a look at our interview with Marc-Alexander Christ, co-founder and CFO of SumUp, celebrating a decade of business and an earlier €590 million debt/equity financing round at a €8 billion valuation.
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