The mobile payment company Square is famed for disrupting the credit industry by helping small businesses accept payments through their phones. Now the San Francisco-based company is at it again. This time, taking on the banks.
ABC News' chief business and economics correspondent Rebecca Jarvis, who also hosts the hit digital show "Real Biz," met up with Jack Dorsey, CEO of Square and chairman of Twitter at Café Grumpy in New York's Grand Central, to talk about Square's latest announcement.
Dorsey's next billion-dollar idea is called Square Capital, a cash advance for small companies. Dorsey explains he is solving the complicated process of getting capital to growing businesses. "The biggest blocker for any seller is access to capital to grow. Square Capital cash advance is fixed, fair and transparent." And, Dorsey explains, it's a much more affordable alternative to getting a traditional bank loan.
"A company borrowing $10,000 from Square Capital would pay back $11,000. Another merchant cash advance you'd pay $18,000 back." Square Capital's payback system is also flexible with your business. The more your company earns, the higher the payment and faster you pay back the money; if your business is slow, your payment amount drops.
Dorsey is showing no signs of slowing down. With two billion-dollar startups in the bag, Twitter and Square, Dorsey says he's in it for the long haul, and has no plans to sell Square.
Here's a "Real Biz Rapid Fire" with 7 Things You Need to Know About Jack Dorsey:
1. What book is on your night stand?
"Leaves of Grass" by Walt Whitman
2. Who is your Twitter must-follow?
3. What's your guilty pleasure?
4. Should Mark McGwire be in the hall of fame?
"Yes. He was a Cardinal."
5. Do you drink Budweiser?
No. Jack's not a fan of drinking any brand of beer
6. Who would you prefer to have lunch with: Jeff Bezos, CEO of Amazon, or Tim Cook, CEO of Apple?
"Both. I think they are both fascinating people."
7. Do you have cable TV?
Jack has never had cable TV and couldn't name a favorite show