Why Square Capital can provide financing simply by entering taxpayer information?

[piro937]

Why Square Capital can provide financing simply by entering taxpayer information? What do they know from taxpayer information? Also, is identity verification unnecessary?

[Regina_B]

Hey @piro937 ! Thanks for posting. In order to be eligible for a loan through Square Capital, Square sellers must qualify based on our proprietary model which evaluates based on various criteria (more information avaliable here). When a Square seller requests a loan through Square Capital, we have a duty to verify that the individual/business information is correct. We use your EIN/Tax ID, and personal identifying information to verify you and your business so that we can process your Square Capital request.

Update - I noticed that you are located in Japan. Square Capital is currently only available to sellers in the US at this time. 

[piro937]

It’s very smart.

When I live in Japan, I have to receive physical mail to identity verification to use such a finance service. It is regulation of AML law.

In US, is that not necessary?

[piro937]

@Regina_B 

It’s very smart.

When I live in Japan, I have to receive physical mail to identity verification to use such a finance service. It is regulation of AML law.

In US, is this process not necessary?