Business Sold or Closed FAQ
We know running a business is hard work, and there may come a time when you want to sell or close your business. Here is what to expect if you are planning on closing or selling your business and your business has an outstanding loan through Square.
Selling or Buying a Business that has a loan through Square
Before selling or buying a business that has taken a loan through Square, be sure to make arrangements for the business to repay the loan balance at the time of sale.
Can I transfer ownership of my loan through Square?
The ability to transfer ownership of a Square account is currently not available for Square Loans merchants. For more information, take a look at our can I transfer ownership of a Square Account? support centre article.
If you would like us to help with linking an existing loan to a new owner or account, please contact Square Support.
If you’ve Sold or Closed your Business
I’ve already sold or closed my business, but my business hasn’t paid off its loan through Square. What’s next?
Please contact the Square Loans Team. We’re happy to chat with you about next steps.
What happens to my loan?
If you close or sell your business without repaying your outstanding loan balance, your loan will be considered in default under your loan agreement.
Upon default, Square may demand immediate repayment of the outstanding balance to be paid within a specified number of days. Additionally, we may debit any past due amounts from your business’ Square-linked bank account, and increase your repayment rate. Take a look at sections 3 and 6 of your loan agreement for more details.
We know times like this can be stressful, and we’re here to help. Keep reading to learn more about repayment options.
I want to pay off my business’ loan. How can I make a payment?
You can make loan payments online through the Loans tab of your online Square Dashboard.
For more details about these payment options, take a look at Square Loans Repayment FAQ.
What if I can’t pay the full amount now?
If your business is unable to repay the full outstanding loan balance at the time of sale or closure, contact us as soon as possible so we can get a better understanding of your situation. We may be able to provide an alternative repayment option to accommodate your circumstances.
Alternative repayment options available for sold businesses
Can the new business owner make payments on the loan?
Yes, any authorised individual associated with the business can make loan payments on behalf of the business. Before selling or buying a business with a loan through Square, be sure to make arrangements for the business to repay the loan balance at the time of sale.
If the loan is not repaid at the time of sale and the business begins processing payments through a new Square account after the sale, the repayment rate may be applied to the new Square account’s card sales until the loan is paid off.
Please contact the Square Loans Team to add the new account as a payer toward your business’s loan.
How can I authorise the new business owner to speak with Square?
Please contact the Square Loans Team to identify the individuals you wish to speak with Square about your business’s loan. These individuals will be able to take action on your loan, including making payments and agreeing to alternative payment arrangements. Consent for this authorisation will be valid until revoked by you. Please provide us with the individuals’:
First and last name
Contact email address
Which documents do I need to provide if I sold my business?
If you sold your business, we may request identifying documents such as government issued photo ID for the new business owner. Keep an eye on your inbox for an email requesting information about the new owner.
Which documents do I need to provide if I closed my business?
If your business was a legal business entity, such as a limited liability company or a partnership, please provide us with the following documentation:
The notice of dissolution that your business provided to creditors, along with all related documentation and the date the notice was sent.
Contact information for the registered agent or the person managing the winding up process.
Note: If your business was a sole proprietorship, no documentation is needed.
Additional questions? Please contact the Square Loans Team.
All loans are issued by Square AU Pty Ltd. (ABN 38 167 106 176). 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.