Square Loans Repayment FAQs

Loan repayment begins on the Repayment Start Date specified in your loan agreement. A fixed percentage of your business’ daily card sales is automatically deducted and applied toward your loan balance until your loan is repaid in full.

A fixed percentage of your daily card sales (including taxes and any tips) is automatically deducted to pay back the loan. This means repayment matches your business’s cash flow – you pay more when business is strong and less if things slow down. The total amount owed (loan amount plus loan fee) never changes. You can find your repayment rate in the loan agreement, but here is an example for a £10,000 loan. The breakdown might be as follows:

• 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 towards 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.

Your business is welcome to pay back its loan early at no additional cost. You can choose to fully repay your loan or pay a portion back early. If you’d like to pay a portion back early, you can specify the amount. Please note that the total cost of your loan does not change by making prepayments.
When you make a prepayment, Square may first apply any pending funds from your card sales and then debit any remaining balance from your linked bank account. We will only initiate a debit if the pending funds are not enough to cover the entire payment.

You can make a payment through your Square Dashboard:

1. Visit the Loans tab of your Square Dashboard
2. Click on Make a Payment
3. Specify a partial payment amount you would like to make, or if you want to pay the current balance in full.
4. Review and confirm your payment.

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 loan 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 loan 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 working days of your origination date.

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.

You may make additional payments online from your linked bank account. Your payment will first be deducted from today’s sales and any remaining balance will be debited from your linked bank account.

Note: Making a payment will not disable your repayment rate. The repayment rate will continue to be applied until the loan is repaid in full.

Yes, if you would like the repayment rate to be applied to one or more of your Square accounts for purposes of repaying your loan, please contact us. Read more about this in our article: Linking Multiple Square Accounts and Locations to Repay a Square loan .

Please relink your bank account as soon as possible.

When you make a payment, we may first apply any pending funds from your card sales, and then debit any remaining amount from your linked bank account. We will only initiate a debit if the pending funds are not enough to cover the entire payment.

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 will debit your Square-linked bank account for your remaining balance. Note: loan maturity is 18 months from the date you accept the loan.

Take a look at Square Loans Fixed Payback Rate and Minimum Payment Requirement for more information

If your daily sales can’t 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 working days before your minimum payment due date.

If you have an outstanding loan balance on the maturity date specified in your loan agreement, Square will initiate a debit from your Square-linked bank account for the remaining loan balance.

When your business is sold before the loan is repaid, the outstanding loan obligation will still remain. Please contact us as soon as possible so we can get a better understanding of your situation.

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.