Apply for and manage Square Cash Advance

About Square Cash Advance

Square Cash Advance is a merchant cash advance that provides an advance upfront in exchange for a percentage of your future card sales that Square purchases from you. A cash advance isn’t a loan so there are no interest payments or fees; instead there is a simple funding cost. 

There are also no monthly payments, so the progress you make on your total balance varies with your business. So Square withholds less of your payments when sales are slow, more when they’re strong, and none on days when you don’t process payments.

Merchant cash advances can be used to purchase inventory, upgrade equipment, invest in marketing or anything else you need to keep your business running. However, funding is only for business use and can’t be used for any personal, household or family reasons.

Here is an example offer: 

• Funding amount: £10,000.00

• Funding cost: £1,000.00

• Total balance: £11,000.00

• Percentage of card sales withheld: 10%

The funding cost is the cost associated with a Square Cash Advance in addition to the funding amount, and the combined total of the funding cost and the funding amount will be withheld from your daily sales. For example, if you accept a plan for £11,000, Square  will purchase a percentage of each sale you make until £11,000 is met. In exchange, Square will provide you with £10,000 in funding upfront. The £1,000 difference is the cost of the funding.  Unlike a loan, there is no interest for a cash advance.

Note: These numbers are for illustrative purposes only.

Before you start 

• Square Cash Advance isn’t a credit product and won’t affect your credit score, and a personal guarantee isn’t required.

• Your total balance refers to the amount of future card sales that Square purchases from you in exchange for funding upfront.

• A fixed percentage of your business’s daily card sales will start being withheld two days after your funding date. The specific start date is provided in your funding agreement.

• Square withholds a fixed percentage rate of your future card sales until your balance is met. The percentage rate will be applied to your gross card sales, including tips and VAT paid by your customers using a credit or debit card. This is also applied in addition to Square’s processing fees for transactions.

• Unlike loans, cash advances don’t have a fixed term length, minimum payments or a specified term length, but we estimate that it’ll be completed within 12 months. The actual time will depend on your card processing with Square.

• Once you apply, your application will be reviewed within three working days, and you’ll receive an email update about your application once the review is complete. If approved, funds will be deposited into your Square-linked bank account within 1–3 working days, depending on your bank’s processing speeds. For more information about processing speed, please contact your bank.

• Once you submit your application, you can’t change your funding amount or your rate. 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.

• Square can’t offer more than the maximum amount reflected in Square Dashboard. Offers are based on a variety of factors related to your business’s Square account, including payment-processing volume, account history and payment frequency.

Apply for Square Cash Advance

Funding offers may change or expire as your processing fluctuates or business changes. To apply for funding:

1. Sign in to Square Dashboard and go to Cash Advance.

2. From Funding Offers, click View details. 

3. Use the slider to select the amount that best fits your business, up to your maximum offer amount. As you adjust your funding amount, the funding cost and percentage of daily card sales change accordingly.

4. Click Select to apply for your funding offer. 

5. Complete your application information > Next. Your account information in your application will be on file from when you joined Square. If your business has changed details have changed or are incorrect, contact Square Support.

6. Review your application information and select I accept to submit your application.

Download your funding agreement

1. Sign in to Square Dashboard and go to Cash Advance.

2. Click (•••) in the Funding details section. 

3. Select Download agreement. 

4. A copy of your agreement will download to your device.

Cancel your application

You can cancel your funding application while it is still processing. After approval, you can cancel within two working days of your funding date. To cancel your application:

1. Sign in to Square Dashboard and go to Cash Advance.

2. Click (•••) in the top-right-hand corner of the Application details section.

3. Click Cancel funding request.

If you choose to cancel your application, we cannot guarantee your business will be eligible for another offer. If you need to cancel your application more than two days after approval, contact Square Support to discuss options for your application.

Review required actions for changes to your business

Transition from a Square Loan to a Square Cash Advance

Certain sole traders and partnerships who have a Square Loan with an outstanding balance will transition to receive Square Cash Advance offers moving forward, once any outstanding loans are paid. Square Cash Advance is a merchant cash advance which provides you with a funding advance upfront in exchange for a percentage of future card sales that Square will purchase from you. 

Unlike Square Loans, Cash Advances do not have fixed term lengths, minimum payments, and cannot be refinanced

You also can’t secure a new offer until the entirety of your Square Cash Advance plan is complete. 

You don’t need to take any action to transition from Square Loans to Square Cash Advance. Once your Square Loan is repaid, you’ll receive an offer for Square Cash Advance if you’re eligible.

Related articles

• Review Square Cash Advance application requirements