Hey Seller Community,
Today we’re happy to announce the launch of Square Loans in Australia!
Square Loans offers eligible sellers the ability to apply for a business loan through Square. Once your Square account meets certain eligibility criteria, Square will notify you of the offer and you’ll be able to apply for a loan within pre-set values from the Loans tab on your online Dashboard.
Square Loans work a little differently to ones you might be used to seeing through banks and other financial providers.
Loans are automatically paid back via a fixed percentage of your card payments processed through Square each day, which means repayment amounts will match your businesses inbound cash flow.
You’ll need to make a minimum repayment of 1/18th of the loan every 60 days and you’ll also need to repay the entire loan balance in full within 18 months of loan approval.
The total amount owed (loan amount + loan fee) never changes. You can find your tailored repayment rate in the loan agreement, but here is an example for a $10,000 loan with a 14% repayment rate:
- Loan amount: $10,000
- Total borrowing cost: $1,400
- Total loan repayment due: $11,400
- Percentage of daily card sales that go towards loan repayment: 14%
- Minimum amount due every 60 days for 18 months: $633.33
If you’re offered a loan we’ll give you the resources you need to work out what your repayment rate and minimum due amounts will be prior to accepting the loan, via your online Dashboard.
Read more about fixed repayment rate and minimum repayment amounts.
FAQ
How does my business become eligible for a loan?
Square takes into account a number of different factors when determining eligibility for a loan, including, but not limited to Square payment volume and frequency.
While we don’t publicise the exact eligibility criteria, you can read our dedicated FAQ on Square Loans eligibility for more information.
Does my credit rating impact my eligibility for a Square Loan?
No, offers through Square Loans are based on your Square processing and account history. Furthermore your Square loan will not impact your credit rating.
Can I pay off my loan early?
Yes you can, and there are no additional fees for paying back your loan early. Keep in mind that the total cost of your loan won’t change whether or not you make pre-payments or pay it off early. Read more at our repayments FAQ.
Visit our Support Centre for more information about Square Loans.
All loans are issued by Square AU Pty Ltd. Valid Australian bank account is required. Actual fee depends upon payment card processing history, loan amount and other eligibility factors. A minimum payment of 1/18th of the initial loan balance is required every 60 days and full loan repayment is required within 18 months. Loan eligibility is not guaranteed. Eligibility criteria include consistent and continuous payment card processing through Square. All loans are subject to credit approval. Terms and conditions apply.