Manage a loan for a sold or closed business
About managing a loans for a sold or closed business
There may come a time when you want to sell or close your business that has an outstanding loan. To pay off your remaining loan balance, you can make payments online through Square Dashboard, by mail using a check, cashier’s check or money order, or by phone using a debit card.
Learn how to Repay your loan.
Before you begin
If you close or sell your business without repaying your outstanding loan balance, your loan will be considered in default under your loan agreement. Upon default, Square Financial Services may demand immediate repayment of the outstanding balance to be paid within a specified number of days.
Square may debit any past due amounts from your business’ Square-linked bank account, and increase your repayment rate. Take a look at sections 3 and 6 of your loan agreement for more details.
If your business is unable to repay the full outstanding loan balance at the time of sale or closure, contact us as soon as possible so we can get a better understanding of your situation. There may be an alternative repayment option to accommodate your circumstances.
Review required actions for your business
If you sold your business, after contacting us we may request identifying documents such as a social security card or government issued photo ID for the new business owner. If additional information about the new owner is needed, a request will be sent via email.
If you’ve closed your business and your business was legal business entity, such as a limited liability company or a partnership, after contacting us you may need to provide the following documentation:
- A notice of dissolution that your business provided to creditors, along with all related documentation and the date the notice was sent.
- Contact information for the registered agent or the person managing the winding up process.
If your business was a sole proprietorship, no documentation is needed.
Review alternative repayment options for sold businesses
Any authorized individual associated with the business can make loan payments on behalf of the business. Before selling or buying a business with a loan, make arrangements for the business to repay the loan balance at the time of sale.
If the loan is not repaid at the time of sale and the business begins processing payments through a new Square account after the sale, the repayment rate may be applied to the new Square account’s card sales until the loan is paid off.
Please contact us to add the new account as a payer toward your business’s loan. The individuals are able to take action on the loan, including making payments and agreeing to alternative payment arrangements. Consent for this authorization will be valid until revoked by you. We’ll need the following information about the new owner:
First and last name
Contact email address
Phone number
Review change of ownership details
The ability to transfer ownership of a Square account is currently not available for businesses with a Square loan. If you have an active Square loan, you can transfer your account 10 days after your loan balance is fully paid off.
If you have a pending application, you can cancel it to transfer your Square account. Visit the Loans tab in Square Dashboard to manage your loans.
Note: Loan offers will be disabled for 30 days after transferring the ownership of your Square account.