Square Loans Repayment FAQ
| In Quebec? Visit our Square Funding FAQ. |
Repayment of your loan is easy and convenient. We automatically apply a portion of your business’s daily Square sales for the purpose of loan repayment. You may also repay your loan early through your Square Dashboard.
Numbers are for illustrative purposes only
Loan repayment overview
Loan repayment begins on the Repayment Start Date specified in your loan agreement. A fixed percentage of your business’s daily card sales is automatically deducted and applied toward your loan balance until your loan is repaid in full.
You’ll repay your loan through a fixed percentage of each card transaction processed through Square. Your repayment rate remains the same, and the amount you pay each day is tied directly to your card processing — you’ll pay more when business is strong, and less if things slow down. The repayment rate will be applied to your gross card sales, including tips and taxes paid by your customers using a credit or debit card, ACH payments and QR code payments made with the Cash App. Please note that your repayment rate applies in addition to Square’s processing fees for these transactions.
You’re required to pay at least 1/18th of your initial loan balance every 60 days so that you make consistent repayment progress. The repayment rate will continue to be applied to all card transactions, even when the minimum payment is met. Also, your full loan balance must be repaid in full within 18 months of the origination date.
Here’s an example:
- Amount deposited in your bank account: $10,000
- Total borrowing cost: $1,400
- Total loan repayment due: $11,400
- Percentage of daily card sales that go toward loan repayment: 14%
- Minimum amount due every 60 days for 18 months: $633.33
Your entire loan balance must be repaid in full within 18 months of loan approval. If the loan hasn’t been repaid in full at the end of 18 months, the remaining loan balance will be due in full.
Numbers are for illustrative purposes only.
Yes, if you would like the repayment rate to be applied to one or more of your Square accounts for purposes of repaying your Square loan, please contact us. Linking Multiple Square Accounts with Square Loans
Please relink your bank account as soon as possible. You can relink by following these instructions. If you wish to make a payment by phone or other means, contact our payments solutions team and schedule a time to speak with us before your minimum payment due date.
You can prepay your loan through your Square Dashboard in four easy steps. Here’s how:
- Visit the Loans tab of your Square Dashboard
- Click on Make a Payment
- Specify a partial payment amount you would like to make, or if you want to pay the current balance in full
- Review and confirm your payment
That’s it. And remember, there are never any additional fees for paying your loan back early.
Note: Prepayments cannot be made on merchant cash advances. If you have a merchant cash advance, please contact us to discuss your repayment options.
Repayment Relief
If you just make the minimum payment of 1/18th of your initial loan balance every 60 days, you will only pay down half your total loan balance in 18 months. You will owe the remaining balance upon the loan maturity date, which is the date your loan is due in full. At that point, we may increase your repayment rate or debit your Square-linked bank account for your remaining balance. Note: loan maturity is 18 months from origination.
Take a look at Square Loans Fixed Payback Rate and Minimum Payment Requirement for more information
If your daily sales cannot cover the minimum payment, your Square-linked bank account may be debited the remaining minimum payment and your repayment rate may be increased until the minimum payment is met.
If a payment is submitted the same day that you are debited for your minimum payment, the debited funds will be applied to the overdue balance and the payment you initiated will be applied to your remaining loan balance. Note: All payments are final and will not be refunded.
No, the percentage of daily card sales used to repay your loan remains fixed until you have fully repaid the loan. This helps your business stay on track to pay on time.
We can help! If you have any issues regarding your upcoming payment, please contact us at least five business days before your minimum payment due date.
Please contact us if you have sold or closed your business.
Credit reference and refinance
Yes! Please contact us if you would like us to send you a payoff statement. You may also sign into your Square Dashboard to view your outstanding balance. To find out how to view your outstanding balance and loan details, check out Navigating your Square Loans Dashboard.