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.
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.
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:
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.
£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.
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.
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.
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.