Not sure how they actually classify it, but Square does have Square Capital, which is a product that gives loans to small businesses. It is different than many loans most are used to in that it uses a "Factor Rate" rather than an APR. You pay back the same amount, regardless of how long it takes you to pay. Daily payment is a percentage of what you process through square in a day and are automatically taken out, so you won't miss a payment.
Due to the oddity in how you pay, and the use of factor rates, it requires knowing your business really well to understand what the APR will be. And the better your business does, the higher the APR as you will pay the interest sooner. In contrast, a traditional business line of credit, you will typically have an upfront APR and doing better means you pay it off sooner and pay less interest.
edit: and to be clear, I'm confident that Square doesn't do the scammy practices in the article.
Due to the oddity in how you pay, and the use of factor rates, it requires knowing your business really well to understand what the APR will be. And the better your business does, the higher the APR as you will pay the interest sooner. In contrast, a traditional business line of credit, you will typically have an upfront APR and doing better means you pay it off sooner and pay less interest.
edit: and to be clear, I'm confident that Square doesn't do the scammy practices in the article.