London-based unicorn SumUp has picked up a $100 million credit facility from Victory Park Capital to drive the launch of a cash advance product for UK and European merchants.
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 in the near future.
SumUp intends to offer cash advances of up to £20,000, based on merchants’ payment history, with payback taken incrementally through payment acceptance with SumUp card readers. Merchants will be charged a fixed fee for access to cash advances.
Marc-Alexander Christ, co-founder at SumUp, says, “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.”