iZettle — the Swedish-based mobile payments company that serves Europe and Latin America — has launched iZettle Advance to help small businesses across Europe gain access to capital with an advance on future card sales.
This launch comes at the same time the company announced it has closed a $67.5 million (€60M) funding round, led by Intel Capital and Zouk Capital. The funding will be used to support the development/expansion of its new product, and enhancements to its existing platform.
“Small companies have persistently been underserved by the traditional finance industry. We want small companies to thrive, and with iZettle Advance we’re applying the exact same logic as when we started iZettle five years ago, and completely overhauled card payments acceptance for small businesses,“ says Jacob de Geer, iZettle’s CEO and co-founder.
iZettle Advance marks a new milestone that aligns with iZettle’s goal to broaden its service offerings beyond card acceptance.
“We have aimed to build a financing service that’s completely tailored to the needs of small businesses. The service allows for small businesses to make the necessary investments in their operations, on their own terms and with minimal administration,” said Carl-Richard Häggman, iZettle’s Chief Risk Officer.
Features of iZettle Advance include:
iZettle Advance will enable iZettle users to streamline the financing process since they are already pre-assessed. Once approved, those small business owners will see the capital in their accounts within days, the company said, and explained that payback occurs automatically. This means that “when sales vary, payback varies with it,” iZettle noted.
Citing a small business who is already eligible for iZettle Advance, the company shared the story of Jaime Morales, who runs and owns Chilimundo, a grocery store in Stockholm.
“As a small business, your cash-flow is often uneven and, until now, there have been no good financing alternatives to smoothen things out. iZettle Advance has allowed me to quickly ramp up the size of my product range, as well as to advertise on social media and radio,” Morales said. “This has had a positive impact on my sales, no doubt about it.”
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