Who needs banks? How tech companies are taking a bite out of financial services

Who needs banks? How tech companies are taking a bite out of financial services

Tech companies moving to create ‘frictionless’ experience so small businesses can get access to money quickly

In early August, Montreal-based Lightspeed POS Inc. announced it would start offering loans of up to US$50,000 per retail location to merchants in the United States that already use its point-of-sale software.

In the announcement, Lightspeed said merchants will, in most cases, get the funds deposited into their account one day after applying.

The company’s customers tend to be mid-sized retailers such as jewelry stores and sporting goods retailers, not the big national chains, but bigger than an independent storefront.

Chief executive Dax Dasilva said such financing might be particularly good for buying inventory, or for launching a new marketing campaign, but he also expects that the speed of the loans could open up new opportunities that merchants haven’t been able to take advantage of before.

Source: Financial Post

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