SumUp Introduces Point-of-Sale Cash Advances to Aid Merchants Amid Rising Costs of Business

SumUp, a global fintech company, has launched a new cash advance product aimed at assisting merchants in managing the increasing costs of running their businesses, as reported by FinTech Magazine News. The innovative offering, named SumUp Cash Advance, allows merchants to access funds based on their payment history and then repay the advances through transactions conducted using SumUp’s card readers.

This move marks SumUp’s venture into merchant financing, a step it has taken with the support of a substantial US$100 million credit facility from Victory Park Capital (VPC), an alternative investment firm. The credit facility is expected to bolster the rollout of the SumUp Cash Advance, which will provide much-needed financial relief to merchants grappling with economic challenges.

Under this new scheme, eligible merchants can obtain cash advances of up to £20,000, tailored to their payment history. The repayment process takes place through their daily card reader sales, negating the concern of accumulating monthly interest fees. This streamlined approach is intended to offer a transparent and manageable solution to businesses seeking financial support.

SumUp Co-Founder Marc-Alexander Christ commented on the significance of the cash advance product in meeting evolving merchant needs. He stated, «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.»

Jason Brown, a Partner at VPC, echoed this sentiment, highlighting their commitment to backing forward-thinking companies that provide accessible financing solutions to small businesses. Brown expressed enthusiasm for partnering with SumUp and supporting their efforts to offer clear and equitable short-term financing in a challenging market environment.

The SumUp Cash Advance arrives as one among several fintech solutions addressing the cost-of-living crisis, catering to both individuals and businesses. This product launch aligns with a broader trend of offering financial tools and resources to navigate economic uncertainties.

As merchants grapple with unexpected expenses and seize growth opportunities, SumUp’s innovative cash advance product could provide a lifeline, aiding them in maintaining business continuity and expansion.