Square Capital provides simple access to funds for growing a business. Your eligibility for a loan through Square Capital is based on your activity with Square. All loans through Square Capital are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Review the sections below to learn more about loan eligibility, fees, enrollment, and to review frequently asked questions.

Square Capital Eligibility

You may be eligible to apply for a loan through Square Capital if you’re an active Square merchant running your business with Square. If you’re eligible to apply, you’ll be presented with Square Capital loan options and terms in your online Square Dashboard and you’ll see a View Your Options link on the Square Capital page. We’ll also send you an invitation email to the address associated with your Square account.

All loans are issued by Celtic Bank. Here are some of the key eligibility factors for a loan through Square Capital:

  • Processing volume:  In general, businesses that have processed at least $10,000 or more in a year.
  • History with Square: Your history with Square is used to spot trends and understand how you might grow in the future.
  • Activity: The number and frequency of payments processed through your account.
  • Customer diversity: Mix of new and returning customers as an indication that your business is growing in different ways.
  • A healthy, growing business. 

If you’re not currently eligible, a loan through Square Capital may become available as you run and grow your business with Square. To start running your business with Square, sign up for a Square account.

Enroll in Square Capital

If you’re eligible for a loan through Square Capital, you’ll be presented a few Square Capital loan options in your online dashboard. If you decide to select an option, Square will then review your request on behalf of Celtic Bank. Upon final approval, your loan funds will be deposited to the bank account linked to your Square account as soon as the next business day. If you’d like to change this account, visit Bank Account in your online Square Dashboard. 

Visit Account & Settings to edit your legal name or business information, as presented on your Square Capital offer.

Your Taxpayer Information and Square Capital

Square and Celtic Bank use your taxpayer information to verify your business and process your Square Capital request. You’ll be asked to submit your Tax ID or Employer Identification Number (EIN) when you enroll. 

If you’ve lost or misplaced your EIN, here are a few tips:

  • When you first apply for an EIN, the IRS will send you Form SS-4. Your EIN is located in the top right corner of this form (it is a nine-digit number in the following format: XX-XXXXXXX).
  • You can call the IRS and inquire about your EIN. You can reach their Business and Specialty Tax Line at 800-829-4933.
  • For additional tips, visit the IRS online.

Square Capital Status

If you qualify for a loan through Square Capital, you’ll see your loan offers presented in your online Square Dashboard. After accepting an option, you can monitor your repayment progress online.

Square Capital Status

In addition to the information available on your Dashboard, you’ll receive a daily email with a detailed payment summary and your remaining balance. You can also view the amount collected for Square Capital repayment on your Deposit CSV, which can be downloaded at any time from your Dashboard.

Square Capital Repayment

Pay a Fixed Daily Percentage

This it how it works: Loan funds are deposited into your bank account upon final approval. In addition to Square’s normal card processing fees, a percentage of your daily sales go towards paying back your outstanding loan through Square Capital each day.

You’ll repay your loan automatically from a percentage of your daily card sales – paying more when business is strong and less if things slow down. The total amount owed never changes.*

*Note: You’re required to pay at least 1/18 of your initial Loan Balance every 60 days so that you make consistent repayment progress. See example below.

Your business will receive a custom loan offer based on your activity with Square. When you accept an offer, you’ll make payments from a fixed percentage of your daily credit card sales until your loan amount has been repaid in full**. For example, if you receive a loan for $10,000, the breakdown might be as follows:

  • Amount deposited in your bank account: $10,000
  • Total loan repayment due: $11,200
  • Percentage of daily card sales that go towards loan repayment: 11%
  • Minimum amount due every 60 days: $622.22

**Note: Your entire loan balance must be repaid in full within 18 months of the acceptance date. If the loan hasn’t been repaid in full at the end of 18 months, the remaining loan balance will be due in full.

Submit Prepayment

If you’d like to pay back your loan through Square Capital early, either partially or in one lump sum, you can do so from your Dashboard. If you choose to fully repay your loan, Square will debit your linked bank account for the full outstanding balance. If you’d like to pay a portion back, you can choose how much you’d like to pay back. If you’d like to change or edit your linked bank account, visit Bank Account  in your online Square Dashboard.***  

There is no fee for paying the loan back early.

To submit a prepayment:

  1. Visit Capital in your online Square Dashboard.
  2. Click Actions > Make a Payment.
  3. Select whether you’d like to make a partial payment or submit the full outstanding amount.
  4. Click Prepay > Confirm.

***Note: The ability to make prepayments is not available on most plans accepted prior to March 24th, 2016. If the option to make a prepayment is not available via Dashboard please refer to your current Square Capital agreement (section 3.2) for terms of prepayment. Your current Capital agreement is viewable from the actions button in the Capital section of Dashboard

Frequently Asked Questions About Square Capital

Is Square Capital a loan?

Yes – Square Capital provides access to a loan to help you grow your business. All loans through Square Capital are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
 

What is my interest rate?

With a loan through Square Capital, payments are a set percentage of your card sales and will vary with the amount you process daily. The percentage of sales rate is not your interest rate. In fact, there are no ongoing interest charges for your loan, only the one-time upfront fee that is listed as a dollar amount. The total cost of the loan is a fixed fee and the total amount owed never changes.

We know you think in terms of cash flow and we want to ensure that our product fits the way you think about your business.

Why do you need my EIN?

Square and Celtic Bank use your EIN or Tax ID to verify your business and process your Square Capital request.  

Does Square Capital have a minimum repayment requirement?

There are minimum requirements. You are required to pay at least 1/18 of your initial loan balance every 60 days so that you make consistent repayment progress. Also, your full loan balance must be repaid in full within 18 months of the acceptance date. For most Square Capital merchants, regular processing volume easily covers the minimum.

For example, if you receive a loan through Square Capital for $10,000, the breakdown might be as follows:

  • Amount deposited in your bank account: $10,000
  • Total loan repayment due: $11,200
  • Percentage of daily card sales that go towards loan repayment: 11%
  • Minimum amount due every 60 days: $622.22

Can I select a different Square Capital option? 

Once you select an option and submit it for review, we’re unable to change the loan amount requested. If you need to, you can cancel your request within two business days of the loan approval date and re-submit.

Will I be eligible for another Square Capital loan in the future?

Once you pay off your loan, your account will automatically be re-evaluated to determine if you’re eligible to receive another loan through Square Capital.

If you’re eligible to apply for another loan, you’ll be notified via email and you’ll be presented a few Square Capital loan options and terms in your Dashboard.

For additional help with Square Capital, contact us.

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