Manage a loan for a sold or closed business
About managing a loans for a sold or closed business
Before selling or buying a business that has an active Square Loan, make sure you make arrangements for the business to repay the loan balance at the time of sale or closure.
Before you start
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. There may be an alternative repayment option to accommodate your circumstances.
The ability to transfer ownership of a Square account isn’t currently available for businesses with a Square Loan. If you want to link repayment of an existing loan to a new owner or account, contact us.
If you have a pending application, you can cancel it to transfer your Square account. Visit Money > Loans in Square Dashboard to manage your loans.
Any authorised individual associated with the business can make loan payments on behalf of the business.
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.
Review required actions for your business
If a business with a Square Loan undergoes a change of ownership, the new business owner can make loan payments. 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 us to add the new account as a payer toward your business’s loan. The new business owner is able to take action on the loan, including making payments and agreeing to alternative payment arrangements. Consent for this authorisation will be valid until revoked by you. We’ll need the following information about the new owner:
- First and last name
- Contact email address
- Phone number
If you plan to close a business with an outstanding Square Loan, contact us as soon as possible. We may be able to provide an alternative repayment option to accommodate your circumstances.
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.
If your business was a sole proprietorship, no documentation is needed.