In its earnings report on Thursday, Block reported that Square Capital did 142,000 loans totaling 1.45 billion in Q2 of 2024. That number is an increase of 32% year over year, an impressive figure.
This is because more merchants are subscribing to their services as Block reported a gross profit increase of 27% this quarter at $1.5 billion.
Square for Restaurants and Square for Retail were up 21%. This is important because it indicates why square loans have increased. The more merchants subscribe to these services the more opportunities for loans.
I said this recently in a post referencing embedding lending, but it should be emphasized again, that a small business owner needs to integrate embedded lending options into their operations.
That means if they can process with Square, Paypal or Stripe then do it. If they can bank with Bluevine or Novo, use Quickbooks for accounting, or Shopify for their website builder platform (among others), it's worth it for the lending options. They all offer some form of lending options that could be advantageous on short notice or simply provide the best lending option, all things considered.
This is one of the reasons why Square is doing so well in that business segment.
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