Apply for and manage a Square loan
About Square loans
Square Loans are business loans which are designed to help you grow your business, and there aren't any hidden fees or lengthy applications to fill out. Because each business is unique, eligible Square sellers are extended loan offers that are personally tailored and customized. Upon approval, funds are deposited as soon as the next business day so you can increase inventory, buy equipment, hire more employees, or whatever you need to help your business grow and succeed.
Loans can range from $100–$350,000, and loan offers are based on a variety of factors, including payment processing volume, account history, and payment frequency. Accounts are reviewed on a daily basis and you’ll be notified if your business is eligible.
All Square loans are issued by Square Financial Services, Inc., a Utah-Chartered Industrial Bank.
Before you begin
Loan offers are available for a limited time. We are constantly evaluating your account, even if you have an active offer. Your offer may change or expire as your payment processing fluctuates or business changes.
There are no ongoing interest charges. Instead, you pay one fixed loan fee to borrow the loan. The fixed fee is the difference between the total owed amount and the initial loan amount. The fixed fee will never change, regardless of how quickly or slowly the loan is repaid.
Once you’ve selected an offer, the loan amount can’t be changed.
Applying for a Square loan doesn’t affect your credit score, and collateral isn’t required. However, we collect consent on the application to access your personal credit report for evaluating your business for future credit offers. If you want to opt out of giving Square Financial Services, Inc. access to your credit score for evaluating your loan offer, contact us and clarify that you’re requesting to opt out of a credit check.
Loan repayment starts 2 days after your funding date, and minimum loan payments are due approximately every month or 2 months (depending on your repayment schedule) ending on the loan maturity date communicated in your loan agreement.
Your loan must be fully repaid by your loan maturity date.
You’re required to repay a certain amount every month or every 2 months (depending on your repayment schedule) until your loan is paid back in full, and the amount is disclosed in your loan agreement. A percentage of daily card sales are deducted automatically for repayment.
If you don’t meet the minimum payments through your daily card sales, we may debit any remaining amount from your Square balance or your linked bank account if there’s insufficient funds.
Your loan repayment rate applies in addition to Square’s processing fees for transactions and can’t be adjusted.
If declined for a loan, review the email notice you received about your loan request for more information on reasoning. We regularly review accounts for eligibility, and there’s no specific timeframe for when your business will be eligible for a loan. If your business becomes eligible again, you’ll be notified by email and in Square Dashboard.
Apply for a loan
If eligible, sign in to Square Dashboard and click Banking > Loans to view your loan offer.
Click and drag the slider bar to select the loan amount that’s right for your business. As you slide across different loan amounts, the fee and hold rate will adjust accordingly. The lower the loan offer size you select, the lower the percentage of daily card sales used to repay your loan.
Complete the application by filling out your personal and business information. When applying for a loan, we’re required by law to collect information about both you and your business for identity verification purposes. Information about your business such as your EIN (if your business has one) as well as information about you such as your SSN or ITIN, date of birth, and full name is required. There isn’t a way to apply without providing information about you such as a valid SSN or an ITIN.
If your business is an LLC, S Corp, C Corp, Partnership, or a Cooperative, provide additional information regarding the control and ownership of your business. We are required by law to collect this information. You will also need to provide information about any Beneficial Owners of your business (individuals that directly or indirectly own 25% or more of the business).
Review and click I accept to submit your application and accept the terms of your loan.
Additional information regarding loan applications:
Business Managers: A Business Manager is someone who has significant responsibility to control, manage, or direct the business applying for the loan, including but not limited to, a President, Chief Executive Officer, or other senior manager. If you’re not a Business Manager, you’re required to submit additional identifying information on behalf of the Business Manager, as well as your business role or title.
Beneficial Owners: A Beneficial Owner is someone who directly or indirectly owns 25% or more of the business applying for the loan. If you’re not a Beneficial Owner, you’re required to submit additional identifying information on behalf of the Beneficial Owners. We won’t contact any listed Beneficial Owners or ask them to review your request for a loan.
All loan applications are subject to credit review. Once you’ve submitted your application, your request is sent over to our team for review. If additional information is requested from you during the review process, you’ll be notified in your Square Dashboard and via email. We will notify you via email when there is a status update on your application.
If approved for a loan, you’ll receive funds into your linked external bank account in 1-3 business days or into your Square Checking account instantly. If you opt to have funds sent to your bank account, the time it takes for your funds to be available depends on your bank’s processing speed. It can take up to three business days to process a deposit.
If your loan is deposited into your Square Checking account, you can access and spend your funds through your Square Debit Card.
If you want to opt out of giving Square Financial Services, Inc. access to your credit score for evaluating your loan offer, contact us and clarify that you’re requesting to opt out of a credit check.
Review and upload loan application documents
When applying for a Square Loan, your business name and taxpayer information will be used to verify you and your business. Typically, you’ll be notified of your application status within one to three business days. If you don’t receive a decision within this timeframe, additional information may be required to verify personal or business details. If so, you’ll be contacted through your Square Dashboard and via email to provide additional documentation.
If additional documentation is requested for your loan application, the information is needed in order for your application to move forward. Your loan application cannot be reviewed if the request is incomplete.
Complete the request in full to the best of your ability. If the submitted information isn’t sufficient, you will be contacted via email and your Square Dashboard with additional details.
You have until the date specified in the email notification to complete the information request. If you don’t provide all of the requested information on time, your application will be canceled.
For more information, please visit the Review and upload loan application documents article.
Cancel your loan application
You can cancel your loan application while it’s still processing. After approval, you can cancel within 2 business days of your funding date. If you cancel your loan, a subsequent offer isn’t guaranteed. To cancel your loan application:
Sign in to Square Dashboard and go to Banking > Loans.
Within the application details, click the (•••) icon.
Select Cancel loan request or Cancel loan and confirm cancellation.
If you need assistance canceling your loan during the cancellation period, please contact us.
Review loan repayment details
Your repayment rate increases when business is strong or decreases if things slow down and applies to gross card sales, including tips and taxes paid by your customers using a credit or debit card, ACH payments, invoices and QR code payments made with Cash App. Your repayment rate will continue to be applied to your daily sales until your loan has been repaid, even if the minimum payment is met. Any overpayments will apply to your next minimum payment period.
The cadence of your minimum payments (monthly or every 2 months) is determined by your offer and cannot be changed. Please reference your loan agreement in your Square Dashboard for the specific repayment details including the repayment rate, the minimum payment (monthly or every 2 months), the term length, and maturity date.
If your daily sales cannot cover the minimum payment, your Square balance and/or linked bank account may be debited the remaining minimum payment. If the debit fails, your daily sales will be applied to any past due amount first. Any remaining past due amount will be added to your next minimum payment debit.
Here’s a loan repayment example:
Amount deposited in your bank account: $16,200
Total Borrowing Cost: $1,800
Total loan repayment due: $18,000
Term: 16 months
Percentage of daily card sales that go towards loan repayment: 10%
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Minimum Payment Requirement (monthly or every 2 months):
Monthly: $1,000
Every 2 months: $2,000
Your entire loan balance must be repaid in full within the repayment time specified in your loan agreement. If the loan hasn’t been repaid in full at the end of this time, the remaining loan balance will be due in full.
Daily repayment example:
Numbers are for illustrative purposes only.
Submit a loan payment
You can submit prepayments any time at no additional cost. The total cost of your loan does not change by making prepayments. To submit a loan payment:
Sign in to Square Dashboard and go to Banking > Loans.
Click Make a payment.
Specify the loan payment amount, or choose to pay the current balance in full.
Review and confirm your payment.
Prepayments are first debited from your Square Balance, and any remaining amount is debited from your linked bank account.
Once you fully prepay your loan, your loan eligibility will be re-evaluated, but we can’t guarantee that you’ll receive a new offer. It can take up to 10 business days for payment confirmation and for your account to be evaluated for new loan offers. During this time you won’t have any loan offers in Square Dashboard.
Square Loans are underwritten and issued by Square Financial Services, Inc. a Utah-Chartered Industrial Bank.