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Home>Square Loans FAQ

Square Loans Eligibility FAQ

For eligible Square sellers, Square Loans offers exclusive access to business loans to grow your business. You can check your business’ eligibility by going to the Loans tab of your Square Dashboard and keeping an eye on your email inbox.

Numbers are for illustrative purposes only

How do I check if I am eligible?

If you don’t see an offer in your Square Dashboard, your business isn’t currently eligible to apply for a Square loan. But keep in mind that Square accounts are reviewed for eligibility on a daily basis. Offer eligibility is based on a variety of factors related to your Square account, including payment processing volume, account history and payment frequency. The more you use Square, the more likely you are to become eligible for a loan offer. You may be able to access more information about your eligibility in the Loans section of your Square Dashboard.

What happens now?

Keep processing with Square – and consider the eligibility factors below as you process. There’s no need to contact us or request an eligibility review. The review is automatic, and we will let you know via your Square Dashboard and by email if you are eligible for an offer – saving you time so you can focus on your business. Note: Square is unable to manually generate or predict offers; all merchants must qualify based on eligibility criteria.

How is eligibility determined?

There are many factors that may affect your eligibility, and accounts are evaluated as a whole. This means that meeting one or more eligibility factors doesn’t guarantee that you’ll be eligible for a loan offer – your business needs to satisfy all criteria to be eligible.

Your business’ Square processing volume is just one of many considerations used to determine eligibility. Here are a few examples of the things that are considered when evaluating your business for an offer:

Square processing volume

In general, businesses that have processed at least $10,000 or more in a year are more likely to be eligible for an offer.

Square payment frequency

The frequency of card payments you process through Square matters. If you consistently take payments, you’re more likely to get noticed. To us, a steady pattern of taking payments shows that you have a healthy business.

Your customer mix

A good mix of new and returning customers shows us that you’re growing in different ways. You can use Square’s analytics tools to better understand your customer base.

A healthy, growing business

The size of your loan offer is generally shaped by how much you process through Square.

Why is my business not eligible for a loan right now? 

While your business needs to satisfy the above criteria to be eligible for Square Loans, the below factors also impact eligibility:

Chargeback history

A chargeback happens when a customer disputes a charge from your business and contacts the card issuer to reverse it. Swiping chip credit cards is one way to increase your chargeback risk. Switch to a Square Reader or learn how to better monitor payment cards to prevent chargebacks.

Multiple Square accounts

If you have multiple Square accounts or locations with outstanding Square loans, make sure that they are all processing consistently and current with loan repayment.

Failed debits

Your Square account is reviewed for failed debits due to insufficient funds. Please be mindful of the amount of funds available in your linked bank account to avoid failed debits.

Prior loan applications

All Square loans are subject to credit approval. Being declined recently for a loan may impact your eligibility.

Account reviews

To ensure the security of your account, Square periodically reviews Square accounts. If your account has been under review recently, it may affect your eligibility as we evaluate accounts as a whole.

Looking for another loan offer?

All Square accounts – including accounts with an active loan – are reviewed for eligibility on a daily basis. If your business is currently repaying a loan, you may become eligible for another offer. You do not need to contact us or provide any additional information to become eligible for a subsequent loan offer. Simply keep doing business as usual.

Time frame

We can’t predict when your business will be eligible for another loan offer, and offers are not guaranteed. Square will automatically re-evaluate your business’s offer eligibility, but there is no magic number for when another offer will be available. Remember each business is different and all accounts/locations are reviewed independently. Each loan offer is specific to the business and account evaluated for the offer.

Loan offer details, as well as the timing of eligibility, may differ from your current loan, as each loan offer is unique and evaluated separately. Additionally, we are unable to manually create offers. You will need to have an offer already available on your Square Dashboard to apply for a loan.

Loan Offer Notification

If your business is eligible for another loan offer, you’ll be notified by email and your loan offer will appear in the Loans tab of your online Square Dashboard. Remember to check your Square Dashboard that’s where we primarily communicate with you about offers.

Will I be eligible for a new loan if I pay off my current loan early?

Making an extra payment or paying off your loan early will not increase your chances of getting another loan offer through Square. Eligibility for another offer is not guaranteed, regardless of whether you prepay your current loan. Also, keep in mind that making a loan payment through the Square Dashboard will expire any existing loan offers.

Prepayments of your existing loan with a mid-plan offer

If you have chosen to prepay your existing loan by accepting a Square Loans mid-plan offer, your existing loan balance will be paid off with a portion of the proceeds of your new Square loan. Any remaining proceeds from the new loan will be deposited into your linked bank account. 

For Example:

  • $10,000 new loan

  • $11,300 total owed ($10,000 new loan + $1,300 fixed fee)

  • $1,250 remaining balance on current plan

The total amount deposited in your bank account will be $8,750 ($10,000 new loan – $1,250 remaining balance). The total amount owed will be $11,300 ($10,000 new loan + $1,300 fixed fee). 

Mid-plan offers are subject to approval and may be available to sellers based on Square processing history and loan repayment history. Accepting a mid-plan offer is completely optional and voluntary, and sellers are under no obligation to accept it. However, if you change your mind, you can cancel your new loan within 2 business days of your origination date by going to your Square Dashboard or replying to this email.

If you prefer to repay your current loan first, you can choose not to accept the mid-plan offer. You can check your eligibility at any time by visiting the Loans tab of your Square Dashboard and keeping an eye on your email inbox.

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