Square Loan Payments

[bradymiguel]

There should be a way to turn off Square Loan % collections once the minimum payment has been reached, and resume at the start of the next payment cycle. Every extra dollar is needed right now. And although my business hits the minimum payment early, every cycle, I could use those overpayments right now. Just an option to pause overpayments until the beginning of the next payment cycle. Doesn’t hurt Square, but helps us. 

[Storks914]

I understand the thought, but have to disagree. The loans are designed to be paid off in no more than 18 months and if you add up the minimum payments they do not cover the full loan amount in 18 months so if you just hit the minimum you will still have a balance left at the end and will get hit with a balloon payment. The minimum just alerts Sqaure if you are seriously behind due to sales volume drops.

[bradymiguel]

I guess I never did the math on it. I assumed the minimums paid off on time. But that makes complete sense. Thanks for the info. 

[Laura123 · Accepted solution]

Hi @bradymiguel, thanks for reaching out! We appreciate the feedback.

I will share your concerns about the repayment percentage with the rest of the Square Loans team. Please know that we’re constantly working to improve our products and services based on the feedback we receive from customers.

One of the benefits of a loan through Square Loans is flexible repayments—paying a fixed percentage of daily card sales allows you to pay more when you’re busy and less if things slow down. There are also minimum payment requirements. You’re required to pay at least 1/18 of your initial loan balance every 60 days. If you have fulfilled the minimum payment requirement, the hold rate will continue to be applied to your daily card sales until your loan is paid in full. Please note that your full loan balance must be repaid in full within 18 months of the acceptance date.

You can reference the loan agreement in your original Square Loans confirmation email. You can also view this information in your online Square Dashboard.

We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth so please feel free to contact us directly if you need any further assistance or if you have any other questions!