Square Loans FAQ

Square Loans provides access to funds to grow your business, with no hidden fees or lengthy applications to fill out. Upon approval, funds are deposited as soon as the next business day – so you can invest in your business immediately to increase inventory, purchase equipment, hire employees and more.

Your loan must be fully repaid within 18 months.

Learn how to download your loan agreement in our navigating your Square Loans Dashboard support centre article.

Yes, you’re required to pay at least 1/18 of your initial loan balance every 60 days to make consistent repayment progress. For most Square Loans merchants, regular processing volume will cover the minimum payment.

Note: If you just make the minimum payment, you will only pay down half your total owed balance of your loan. You will owe the remaining balance upon the maturity date of your loan, and may be debited for that amount.

There are no ongoing interest charges. Instead, you will pay one fixed loan fee to borrow the loan. The loan fee is the difference between the total owed amount and the initial loan amount. The loan fee will never change, regardless of how quickly or slowly the loan is repaid.

Additionally, there are no application, prepayment or late fees.

Upon approval, funds will be deposited as soon as the next business day.

However, please know that the time that it takes for those funds to be available to you will depend on your bank’s processing speed. It can take them up to three business days to process this deposit. For more information about your bank’s processing speed, please contact your bank.

You can cancel your loan application while it is still processing, or within two business days of loan origination. For more information, view our cancelling your Application or Loan through Square support centre article.

Once you have selected an offer, we’re unable to change the loan amount. If you’d like to cancel your loan after it has been funded, you can do so before a decision is made on your application or within two business days of funding. Please note, if you cancel your loan, a subsequent offer is not guaranteed.

You are not able to adjust your repayment rate after you apply for your offer. The repayment rate is tied directly to your loan offer size and is based on a number of factors, including your business’s history with Square, as well as payment processing volume.

Applying for a loan through Square doesn’t affect your credit rating. Additionally, we don’t require collateral for business loans of $75,000 or less, and we never require a personal guarantee. Learn more about Your Credit Rating and Square Loans FAQ.

The loan fee is GST exempted.

This information is general in nature and is not tax advice. For more specific information on tax reporting, please consult with a tax advisor.

We do not require collateral for loan amounts of $75,000 or less. For loan amounts over $75,000, we take a security interest in your business assets and file a secured interest on the Personal Property Security Register (PPSR).

A security interest filing is a publicly available record that provides notice of a security interest in certain property of a debtor. Security interests are filed on the Personal Property Security Register (PPSR), and can be filed for several reasons. For example, Secured Interests are sometimes filed when a lender makes a secured loan to a business.

After you have finished paying off your loan, the Square Loans team will discharge the secured interest. If you have completed paying off your loan, yet find that the secured interest has not been discharged, you can contact the Square Loans team with a request to remove the registered secured interest. Please note that we only file secured interests on loan amounts above $75,000.

Sometimes, institutions may not successfully discharge a previous registered secured interest on the Personal Property Securities Register (PPSR). If you are unsure, best practice is to reach out directly to the secured party for confirmation.

Square does not ask for a personal guarantee on your loan.