Apply for and manage Square funding
About Square funding
Square funding is a merchant cash advance, meaning you’ll get funding upfront in exchange for a fixed percentage of future credit or debit card sales processed with Square. When you accept funding, you agree to sell Square a set amount of future card sales for the funding amount listed in your offer. There is no interest or any fees other than a funding cost.
There are no monthly payments, so the progress you make on your total balance will vary with your business. So Square less will be withheld when sales are slow, and more when they’re strong.
Before you begin
Square withholds a fixed percentage rate of your future card sales starting two days after your funding date until your balance is met. The percentage rate is applied to your gross card sales, including tips and taxes paid by your customers using a credit or debit card. This is applied in addition to Square’s processing fees for these transactions.
Once you submit your application, you’re unable to update the funding amount or request a larger offer. The percentage rate is tied directly to your funding offer size and is based on a number of factors, including your business’s history with Square, as well as payment processing volume.
Your credit score isn’t affected when applying for funding. Additionally, we don’t require collateral or a personal guarantee.
Funding offers may change or expire as your processing fluctuates or business changes.
Square accounts are regularly reviewed for eligibility. You don’t need to contact us or provide any additional information to become eligible for a funding offer. You can check Square Dashboard for more information about your current eligibility status.
You must complete your funding plan before additional funding is offered. Once your plan is complete, your account is regularly reviewed for eligibility, but new funding offers aren’t guaranteed. If you’re re-eligible for a new offer, you’ll be notified via email and Square Dashboard.
Apply for funding
Sign in to Square Dashboard and go to Money > Funding.
Click and drag the slider bar to select the funding amount that’s right for your business. As you slide across different funding amounts, the fee and repayment rate will adjust accordingly. The lower the offer size you select, the lower the percentage of daily card sales are used to repay your funding amount.
Complete the application by confirming your personal and business information that was provided when setting up your Square account. For corporations and partnerships, you’ll be prompted to provide your business information for verification purposes.
Review and select I accept to submit your application and accept the terms of your funding.
Once you’ve submitted your application, your request is sent over to our team for review. If additional information is requested from you during the review process, you’ll be notified in your Square Dashboard and via email. We will notify you via email when there is a status update on your application.
Once your application is approved, funds will be deposited as soon as the next business day but the time it takes for funds to be available depends on your bank’s processing speed. It can take up to three business days to process this deposit. For more information about your bank’s processing speed, please contact your bank.
Review required application information
We may need to verify certain information when applying for Square funding. If additional information about you or your business is requested, you’ll be notified via Square Dashboard and email to provide additional documents listed below.
If we are requesting additional information about a transaction, you can submit one of the following:
- Service contract
- Purchase order
- Signed credit card authorization form
- Detailed receipt
- Bill of sale
- Email correspondence with the buyer
If you don’t have any of the above, please provide a detailed description of the goods and/or services sold.
A financing statement is a notice that a lender has a security interest in one or more of your assets and has registered in accordance with the Personal Property Security Act (PPSA). If you’re asked to provide additional information about a lien, we’ll provide you with the date, filing number, and the name of the lien holder.
If additional information is requested about a lien, you can submit one of the following:
- Payment statements indicating the current status of the underlying loan or obligation
- A letter from the lien holder stating that the merchant is current on repayment
- A letter from the lien holder that the loan has been satisfied
- A lien discharge statement or a letter from the lien holder that the security interest has been discharged
Cancel your funding application
You can cancel your funding application while it’s still processing. After approval, you can cancel within two business days of your funding date.
Sign in to Square Dashboard and go to Money > Funding.
Select Actions > Cancel Plan.
Click Confirm Cancellation.
if you cancel your funding request, a subsequent offer is not guaranteed.
Submit a funding payment
You can buy back a portion or the full amount of your future card sales at no additional cost. The funding cost doesn’t change based on the timing that your balance is met.
Sign in to Square Dashboard and go to Money > Funding.
Click Reduce Balance.
Specify your payment amount.
Review and confirm your payment.