Global fintech company SumUp has entered into a US$100 million credit facility with Victory Park Capital (VPC). VPC is a global alternative investment firm specialising in private credit. The credit facility will enable SumUp to provide advance payments to merchants based in the UK in the immediate term. In addition to other European markets in the near future.
SumUp Cash Advance helps merchants finance their operations and seize growth opportunities for their businesses. The advances (of up to £20,000) are based on merchants’ payment history. It is in addition to merchants pay back advances through payment acceptance with SumUp card readers, in a flexible and incremental manner.
Furthermore, merchants pay a transparent, fixed fee for access to cash advances. As a result, they do not have to worry about encountering any hidden fees or monthly interest.
Supporting business growth
Marc-Alexander Christ, Co-Founder at SumUp, said, “Since SumUp launched 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. This supports our mission of simplifying business operations for our merchants.
“Our cash advance product can support business growth in a transparent and fair manner. This will enable 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.”
Jason Brown, Partner at VPC, suggested, “We are dedicated to supporting forward-thinking, innovative companies that enable wider access to financing solutions for small businesses. 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.”
SumUp’s cash advance product provides a wide array of applications and potential use cases. SumUp says it can be used to:
- upgrade machinery and equipment
- procure vital inventory in anticipation of busy periods
- support transformative renovations to revamp facilities
- capitalise on strategic growth prospects.
At a time when businesses are contending with a cost-of-living crisis, the cash advance product can also be used to deal with emergencies. Such as unforeseen equipment break-downs, helping to alleviate short-term pressures.
Enterprise Times: What this means for business
It’s been a busy year for SumUp. In March, the company launched its Kiosk solution designed to transform how businesses process orders. The company expects the solution to improve the speed at which merchants can process orders. The audience range from small restaurants that rely on high order turnover to stadiums which host sporting and music events.
Now the company has successfully attracted a US$100 million credit facility to drive the expansion of its merchant cash advance product and support UK-based merchants. This facility should sustain SumUp’s impressive growth path going forward.
Industry analyst SkyQuest Technology Consulting estimates the Global eCommerce market was valued at USD 14.30 trillion in 2021. The analyst has estimated the sector will reach USD 58.74 trillion by 2028. Maintaining positive cash flows will be key to enable the survival of brands and retailers in this competitive marketplace. Hence the importance of this credit facility for SumUp supporting advance payments to merchants based in the UK and Europe.
