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Square Falls on Concerns Over Financing Business-Loan Program

  • Profit margin on hardware sales not favored by investors
  • Company cites `challenging credit market conditions' on loans
Bloomberg business news

Why Investors Are Worried About Square's Loan Program

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Square Inc. shares fell as much as 20 percent on concerns about financing for its small-business customer-loan program, a service that had been viewed as a growth area for the digital-payments company.

The company said Thursday in its first-quarter earnings report that it extended $153 million in loans and advances, a 4 percent increase from the previous quarter. Square said it faced “challenging credit market conditions” and cited delays signing new investors to help back its lending business.