Square Loans Repayment FAQs

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 towards 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 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.

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.

Yes, you can submit prepayments any time at no additional cost. The total cost of your loan does not change by making prepayments.

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
• View and confirm your payment

That’s it. And remember, there are never any additional fees for paying your loan back early.

Please note that if you fully prepay your loan, your business’s loan eligibility will at that point be re-evaluated. We can’t guarantee that you’ll receive a new offer after you make an additional payment or pay off your loan. It can take up to 10 working days for payment confirmation and for your account to be evaluated for new loan offers during which time you won’t have any loan offers visible in your Square Dashboard. If you had a Square loan offer prior to paying off your loan, submitting a prepayment will expire any existing offers.

Note: prepayments cannot be made on merchant cash advances. If you have a merchant cash advance, please contact us to discuss your repayment options.

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.

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 two 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.

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.