All loans through Square Capital are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Celtic Bank extends customized offers to Square merchants based on account activity with Square. Upon approval, funds will be deposited as soon as the next business day.
Square Capital Fees
You’ll repay your loan from a fixed percentage of your daily credit card sales. Your repayment percentage remains the same and is tied directly to your card sales – you’ll pay more when business is strong, and less if things slow down. The total amount owed never changes, and your fixed payback rate is in addition to Square’s normal processing fees.
Repayment fee breakdown
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.
Read about Square Capital repayment options.