Square Secures Credit Deal
The mobile payment processor, Square, has secured a credit deal that will help the 5-year startup grow.
According to CNBC, the revolving credit facility, which was led by Goldman Sachs, and counted Morgan Stanley, JP Morgan Chase, Barclays and Silicon Valley Bank as participants, has net Square $200 million.
Founded by ex-Twitter CEO Jack Dorsey in 2009, Square has quickly risen up the ranks thanks to major funding, and a trending increase in processed payment volume.
Why does Square need the money? According to a Square spokesperson, “Securing access to low-cost capital always makes financial sense, even for a well-capitalized company like Square.”
It’s likely the funding was established on good terms, and securing additional capital is a wise choice even for a major payments industry player like Square.
It was also recently reported in February that Square was mulling over an IPO sometime this year, but unmet revenue expectations put that on hold indefinitely.
Other big name tech companies, such as Twitter, Facebook, and Dropbox, previously secured similar credit financing prior to their own IPOs.
Square has been valued at $5 billion, and is expected to process $30 billion in payments thanks to its iconic hardware and partnership with Starbucks to power its mobile payments program.