Global fintech SumUp has secured a $100 million credit facility from Victory Park Capital which it will use to provide advance payments to UK-based merchants in the immediate term.
Eventually, SumUp will expand its merchant cash-advance product to other European markets.
SumUp ‘Cash Advance’ offers advances of up to £20,000, based on merchants’ payment history, for which merchants pay a fixed fee.
Merchants then pay back advances in increments through payment acceptance with SumUp card readers.
Marc-Alexander Christ, co-founder of SumUp, said since launching 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,” he added.
“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,” Christ said.
Jason Brown, partner at Victory Park Capital, added: “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.”