Small businesses often struggle to secure loans for a variety of reasons. According to the Federal Reserve’s 2017 Small Business Credit Survey, roughly 70% of small merchants did not receive the funding they requested last year. Moreover, big banks approve just one-quarter of the small business loan applications they receive.

Fintech is coming to the rescue.

Mobile payment device, Square, and eBay have come to the rescue of many individuals hoping to finance their dream idea, innovation or passion project. Through Square Capital, the lending arm of Square that launched in 2014, eBay sellers can apply for loans to help expand their business operations. Commercial banks and lending platform historically ignore small merchants. The partnership between eBay and Square Capital will provide loans up to $100,000 based on a merchant’s sales history.

Other fintech companies are also providing services to small businesses, like PayPal and Amazon.

Owners are mainly turned down by commercial banks for having no credit history or a low credit score. Banks look at not only a business’s credit history but the owner’s history as well. If the individual has poor credit, banks will look unfavorably on the requested loan.

Another reason why small business loans aren’t approved is that lending to these firms is seen as risky by banks. After the 2008 financial crisis, commercial banks raised their lending standards and regulations, which pushed out small businesses. They have little collateral to offer to reduce the risk and may not have sufficient cash flows to cover monthly loan payments.

Square Capital’s loans will be as small as $500 to eBay merchants to assist from a range of areas including inventory, marketing, and manufacturing equipment.