Questions about fees on a second loan through Square Capital

[Rockman2011]

The title of this thread has been edited from the original: Is Square Capital double dipping on fees?

So if I take out a square capital loan at $3000 and they charge a flat fee of say $399 and then when my balance gets down to around $1000 they offer me a loan for $4000 and the fees are $499.   I understand that they are going to use $1000 of the new loan to pay off the old loan but the new fee is based on the amount of $4000 so in essence, I am being charged a fee again to pay off the $1000 that I already paid a fee on in the first place.   Is anyone following me here?  Seams like I am getting double dipped on fees.

[GlassJudy]

But you are actually borrowing the whole $4,000.  If you were only borrowing $3,000, then you'd only owe $3,000.  Since you're really borrowing the higher amount, the fees should be based on that amount.  Think of it like this: if you borrowed $4,000 from someone else, you'd pay fees on that amount.  You'd then use $1,000 to pay off Square.  You'd still have $3,000 and owe Square nothing, and the other lender $4,000 - just like you will owe Square.

[Rockman2011]

Okay, makes more sense...lol  Not sure why I was not able to wrap my head around it.

Thanks!!!!

[GlassJudy]

At first I had a little bit of trouble figuring it out too.

I'm glad I could help out.