Square Loans offers access to fast, simple, and transparent small business loans to help you grow your business. There is no burdensome paperwork to apply, qualified sellers can get funds as soon as the next business day, repayment happens as a fixed percentage of your daily card sales, and the cost of the loan is a fixed dollar amount that never changes.
Here’s what to expect during the life of a loan through Square Loans, using a fictional seller example:
- How do I qualify?
- How can I learn more about my loan offers?
- How do I accept my offer?
- How do I make and monitor my payments?
- Can I get another loan?
- What if I have more questions?
How do I qualify?
Meet Kaitlyn, new Square seller and the owner of Arden Home. She wants to purchase inventory to help grow her business’ sales. After a couple of months with Square, Kaitlyn establishes Arden Home as a healthy, growing business. To be eligible for a loan through Square Loans, a variety of factors are considered, including payment processing volume, account history, and payment frequency, to determine her loan eligibility.
Tip: Learn more about how to get noticed for a loan through Square Loans.
How can I learn about my loan offers?
Kaitlyn receives an email telling her she’s eligible to request a loan. She logs in to the Loans tab of her Square Dashboard to view her offer details.
Let’s suppose Kaitlyn may only need $5,000. She decides to click the “Customize your loan offer” button below her three preset offers to choose a different loan amount. As she views the different loan offers, the fee and hold rate update accordingly.
Kaitlyn evaluates her offer (here are four things you might look at when evaluating a loan offer). She realizes:
- With a loan through Square Loans, the total payback amount is clear upfront. The total cost of the loan is the fixed fee, and the total amount owed is simply the loan amount requested plus the fixed fee. There are no ongoing interest charges on the loan. There are also no application, prepayment, or origination fees.
- Upon approval, funds are deposited within one to three business days.
- She’ll repay the loan through a fixed percentage of her daily card sales.
Tip: Payments are made through a fixed percentage of your business’s card sales. This percentage is not an interest rate. We know you think in terms of cash flow and we want to ensure that our product fits that.
Kaitlyn decides to do a little more research by reading the Square Loans FAQ. She also learns Square Loans has provided access to more than $1 billion in funding to over 100,000 other sellers. 💰
How do I accept my offer?
Kaitlyn returns to the Loans tab of Dashboard and clicks “Request $5,000.” She confirms her personal and business information with just a few clicks and submits her application.
In most cases, approved sellers receive funds within one to three business days. Sometimes Square Loans requests additional documentation through an Information Request Form (IRF) to verify a business. (Learn more about information request forms.) A Square Loans team member then manually reviews the responses (yes, we read each response).
Tip: If we send you an IRF, your loan application will not be reviewed unless this form is completed. If you do not have all the requested information, please fill in with whatever you have available.
How do I make and monitor my payments?
Starting the next day, Kaitlyn begins automatically repaying her loan through the fixed percentage of her daily credit card sales. (Learn more about repayment.) At any time, she can also monitor her repayment progress through:
- The Loans tab of her Square Dashboard
- The Daily Square Loans payment summary email
- Her downloaded Square Deposit CSV
Fast-forward a few months later: Her business has generated extra cash and she decides to make a partial prepayment. To do this at any time at no additional cost, all she has to do is:
- Log in to the Loans tab of her Dashboard.
- Select Actions in the top-right corner.
- Select and confirm the payment amount.
Can I get another loan?
Once Kaitlyn’s loan is close to repaid, her account is automatically reevaluated to determine if she’s eligible to receive another offer. This timing helps to ensure a significant portion of her new loan can be used to reinvest in her business directly rather than going toward repaying her existing loan balance. If she’s eligible, she receives an email and can view her offers in her Dashboard.
Each set of loan offers is unique and evaluated separately so they may differ as your business changes. Square Loans automatically reviews all seller accounts to determine loan eligibility and we’ll notify you if you become eligible.
Tip: If a manual payment is used to pay toward your total outstanding loan balance, it may take up to two weeks for your account to be reevaluated for a new loan offer through Square Loans. Once the payment has been successfully processed, you will be notified directly through your Square Dashboard and via email if you become eligible for a new loan offer.
What if I have more questions?
If you ever need assistance, please post here in the community, reach out to our Support team, and check out the Square Loans FAQ.
The Fine Print
Square Loans, LLC is a wholly owned subsidiary of Square, Inc. All loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank. Member FDIC, located in Salt Lake City, Utah. Loans are not issued to borrowers in ND. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Actual fee depends upon payment card processing history and loan amount. 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. All loans are subject to credit approval. Numbers are for illustrative purposes only.
