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Selling or Closing a Business with a Square Loan

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 Square Loan

Before selling or buying a business that has an active loan through Square, be sure to make arrangements for the business to repay the loan balance at the time of sale.

If you have already completed the sale, please contact the Square Loans team. We’re happy to chat with you about next steps.

Can I transfer ownership of my Square account when I have a loan through Square?

No, you can’t transfer ownership of a Square account that has a Square Loan at this time. For more information, take a look at our Transfer Ownership of Your Square Account.

If you would like us to help with linking an existing loan to a new owner or account, please contact the Square Loans team.

Can the new business owner make payments on the loan?

Yes, the new business owner can make payments. Before selling or buying a business that has a loan through Square, be sure to make arrangements for how the loan balance will be repaid .

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 authorize the new business owner to speak with Square about my loan?

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 authorization will be valid until revoked by you. Please provide us with the individuals’:

  • First and last name
  • Contact email address
  • Phone number

Closed business with a Square Loan

I want to pay off my business’s 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 loan 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.

Do I need to provide any documents if I close my business?

If your business was a legal business entity, such as a limited liability company or a partnership, we may request 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.

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