Square's Loan Offer: What's The Catch?

Square offers small business loans with no long forms, lengthy applications, or hidden fees. The loan amounts range from $100 to $350,000, with funds deposited as soon as the next business day. Eligibility is based on various factors, including payment processing volume, account history, and payment frequency. Square loans are exclusive to Square sellers and are invite-only, with no impact on credit scores. Repayments are made automatically through daily Square sales, with no ongoing interest charges. However, a fixed percentage of card sales is deducted, which can impact take-home revenue. Square loans provide accessible financing for businesses, especially those that banks may be reluctant to invest in.

Square Loans are business loans designed to help you grow your business

Eligibility for a Square Loan is based on a variety of factors related to your business, including its payment processing volume, account history, and payment frequency. Square also considers your annual revenue, consumer base, and the overall health of your business. A good mix of new and returning customers reflects that your business is growing. Square's analytics tools can help you understand your customer base better.

There are no hidden fees or lengthy applications to fill out with Square Loans. Applying for a Square Loan does not affect your credit score, and Square does not require a personal guarantee for your business to take out a loan. Square Loans are deposited instantly in a Square Checking account, and repayments are made automatically through your daily Square sales. The percentage you pay stays the same, but the amount adjusts to match your cash flow. There is also no interest, so your balance never grows.

You can check your business's eligibility by going to the Loans tab of your Square Dashboard. If your loan application is approved, you'll receive funds in your external linked bank account in 1-3 business days, or into your Square Checking account instantly.

There are no hidden fees or lengthy applications to fill out

Square Loans are business loans designed to help you grow your business. There are no hidden fees or lengthy applications to fill out. The application process is straightforward and can be completed in just a few minutes.

Square Loans are offered by invitation only, and eligibility is determined by an automatic review of your business's real-time data. This includes factors such as your time using Square, processing volume, account history, and payment frequency. If you are eligible, you will be notified through your Square Dashboard and email, and you can review the loan offer details, including the loan amount, repayment terms, and eligibility criteria.

The loan application process involves submitting your personal and business information for identity verification. This includes your SSN or ITIN, date of birth, full name, and business information such as your EIN. However, Square does not require a credit check or collateral for loan amounts of $100,000 or less. There are also no prepayment penalties, and making prepayments will not change the cost of your loan.

Square Loans range from $100 to $350,000, and the repayment process is automatic through a fixed percentage of daily card sales. The loan must be repaid within 12 to 18 months, with a minimum payment of 1/18 of the initial loan balance due every 60 days. It's important to note that Square will continue to take payments even if you've met the minimum 60-day threshold amount.

Loan offers range from $100 to $350,000

Square Loans are business loans designed to help you grow your business. Loan offers range from $100 to $350,000 and are based on a variety of factors related to your business, including payment processing volume, account history, and payment frequency. The size of your loan offer is generally determined by how much you process through Square. Businesses that have processed at least $10,000 or more in a year are more likely to be eligible for an offer. Additionally, your business needs to have used Square on at least 20 days in the last year.

Square Loans are offered by invitation and eligibility is reviewed regularly and automatically. If you are eligible, you will be notified through the Square Dashboard and by email. It is important to note that loan offers are not guaranteed and cannot be manually generated or predicted. Square also claims that they do not use your credit score during their initial assessment to determine eligibility for a loan.

Once you've received a loan offer, you can log in to the Square Dashboard and select Banking > Loans to view the offer. You can then adjust the slider bar to select the loan amount that suits your business. As you change the loan amount, the fee and hold rate will also adjust. The lower the loan offer size, the lower the percentage of daily card sales used to repay the loan.

After you've selected the loan amount, you can complete the application by filling out your personal and business information. Information such as your SSN or ITIN, date of birth, and full name is required. Square Loans need to be repaid within 18 months, and the funds can be used to increase inventory, buy equipment, hire employees, or any other business needs.

Repayments are made automatically through your daily Square sales

Square Loans are designed to help small businesses grow by providing them with funds to increase inventory, buy equipment, or hire more employees. Square Loans are currently offered by invitation, with loan offers ranging from $100 to $350,000.

Repayments for Square Loans are made automatically through a fixed percentage of your daily Square sales. This means that the repayment amount is directly tied to your card processing—you'll pay more on days when your business is thriving and less on slower days. The repayment rate is applied to your gross card sales, including tips and taxes paid by your customers using credit or debit cards, ACH payments, and QR code payments made with the Cash App.

The percentage of your daily card sales used to repay your loan remains fixed until you have fully repaid the loan. This helps your business stay on track to pay on time. The repayment rate will be automatically applied to all card transactions until your loan is repaid in full, even when the minimum payment is met. A minimum of 1/18 of the initial balance must be repaid every 60 days. If your daily card sales cannot cover the 60-day minimum payment, Square Financial Services may debit the remaining minimum payment amount due from your Square balance or your Square-linked bank account.

Additionally, it's important to note that loan repayment starts two business days after loan origination, and the exact date is reflected in your loan agreement. Once your loan has matured, the outstanding balance is due in full.

Applying for a Square Loan does not affect your credit score

Square Loans are business loans designed to help you grow your business. They range from $100 to $350,000 and are based on a variety of factors related to your business, including payment processing volume, account history, and payment frequency. There are no hidden fees or lengthy applications to fill out, and upon approval, funds are deposited as soon as the next business day.

Loan eligibility is based on a variety of factors related to your Square account, including payment processing volume, account history, and payment frequency. A good mix of new and returning customers reflects that your business is growing in different ways. You can use Square's analytics tools to understand your customer base better.

To apply for a Square Loan, log in to your Square Dashboard and select Banking > Loans to view your loan offer. Complete the application by filling out your personal and business information. 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.

Frequently asked questions