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Have you been Declined for a Loan through Square?

We appreciate your interest in Square Loans. If you were recently declined for a loan through Square, the following information may help you better understand the credit review process.

Why was I declined after receiving an offer?

After you apply for a loan through Square, your application goes through underwriting and verification processes to determine whether your business qualifies for the loan you requested. The specific reasons your application was declined can be found in the email notice you received from Square Loans.

We understand being declined for a loan through Square can be disappointing, and we’d like to do our best to increase transparency in this process.

How can I become eligible?

Square Loans is an invitation-only program for eligible Square merchants. If you received a loan offer in your Square Dashboard, you are eligible to apply for a loan. Please keep in mind that each loan application is subject to credit review, and being eligible to apply for a loan does not guarantee that your application will be approved. You can learn more about eligibility by reading our Square Loans Eligibility FAQ.

What are the reasons for being declined?

There are various requirements that must be met in order to qualify for a loan. Some of the reasons for decline include but are not limited to:

Your business has had unusual payment processing activity recently

When we review your account after you submit your application, we look at your payment history with Square. If you have been declined for this reason, it means that your recent Square account payment history seems unusual.

Your business has taken fewer Square payments recently

If you have been declined due to payment history, we have reviewed your account and determined that your sales through Square have decreased relative to your prior payment history.

Your business has recent chargeback claims from sales through Square

To protect your business from chargebacks, be sure to have receipts or invoices to prove you provided your goods or services. Square may decline your loan application if your business has received too many chargeback claims while using the Square Point of Sale app. To find out more about chargebacks and proper documentation, visit the Town Square Blog: Chargebacks 101.

Your business is connected to another loan through Square

When your business is connected to another loan through Square, it is important to keep the connected account current and processing consistently. If you have one or more accounts that don’t meet this criteria, your new loan application may not be approved.

Your business has had transactions that are considered to be cash advancing

Cash advancing includes swiping your own credit or debit card or those of family members, friends or associates. This conduct is prohibited by Square’s Terms of Service. Square’s Point of Sale service is designed to process payments for the sale of goods or services. It is not designed to process person-to-person transfers or to facilitate payments between companies owned by the same individuals/groups of individuals or within companies.

Your Square account has experienced failed debits

Your Square account is reviewed for failed debits due to insufficient funds. It’s important to Square that loans are originated responsibly. We are here to help you grow and succeed. We want to make sure that your business can support the minimum payment requirement for your requested loan. Please be mindful of the amount of funds available in your linked bank account to avoid failed debits.

Is my credit rating affected?

No, 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.


Why was I declined for an additional loan?

We review every loan application on a case-by-case basis, independently from any previous loan. Even though your most recent request for a loan through Square has been declined, it does not prevent you from becoming eligible for a loan through Square Loans in the future. We routinely review eligibility of our sellers and if your business becomes eligible to request a loan again, you will see loan offers in your Square Dashboard. Offers are based on a variety of factors including payment processing volume, account history and payment frequency.


When will I be eligible again?

We are unable to predict when your business will be eligible for another loan. However, depending on your decline reason, we may be able to provide an estimated timeline for when your account may be eligible for re-evaluation.


© 2021 Squareup Pte Ltd (Singapore) and Square, Inc. (US).
Square, the Square Logo, Square Loans, and others are trademarks of Square, Inc. or its subsidiaries.

All loans are issued by Square AU Pty Ltd. 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.


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