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Square Loans Repayment FAQ

Repayment of your loan with Square 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 through other acceptable methods including: online via your Square Dashboard, by mail using a check or a USPS money order or via debit card over the phone.

Loan Repayment Overview

When does loan repayment begin?

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 toward your loan balance until your loan is repaid in full.

How do I repay my loan?

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.

Square Loans Repayment Overview

Numbers are for illustrative purposes only.

What are other forms of acceptable payment?

If you’re unable to make an online payment, other forms of acceptable payment are:

  • Personal checks
  • Cashier’s checks
  • Money orders from a local USPS branch
  • Debit card over the phone

At this time, we do not accept payment by credit card or Money Orders that are not issued by USPS.

If you choose payment by check or money order, please make all payments payable to Square Financial Services and mailed to the following address:

JP Morgan - Lockbox Processing
Attn: Square Financial Services - 22402
4 Chase Metrotech Center
7th Floor East
Brooklyn, NY 11245

Please be sure to include the email address associated with your Square account as well as “Square loan repayment” in the memo line of your check.

Note: At this time, we do not accept payments via credit card, wire transfers, or Money Orders that are not issued by USPS.

If you wish to make a debit card payment over the phone, please give us a call at 855-897-1838. We are available to speak Monday- Friday from 7am - 5pm PT.

Can I add a payer to my loan?

Yes, if you would like the repayment rate to be applied to one or more of your Square accounts for purposes of repaying your Square loan, please contact us. Linking Multiple Square Accounts with Square Loans

How can I repay my loan if my bank account is unlinked from my Square Dashboard?

Please relink your bank account as soon as possible, you can relink by following these instructions. If you wish to make a payment by phone or other means, contact our payments solutions team and schedule a time to speak with us before your minimum payment due date.

Why was the amount debited from my linked bank account different than my prepayment?

When you make a prepayment, Square Financial Services may first apply any pending funds from your card sales and then debit any remaining amount from your linked bank account. Please note that we will only initiate a debit if the pending funds are not enough to cover the entire prepayment.

Can I pay off my loan early?

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:

  1. Visit the Loans tab of your Square Dashboard

  1. Click on Make a Payment

  1. Specify a partial payment amount you would like to make, or if you want to pay the current balance in full

  1. Review 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 business days for payment confirmation and for your account to be evaluated for new loan offers during which time you will not 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.

Repayment Relief

What happens if I just make my minimum 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 may increase your repayment rate or debit your Square-linked bank account for your remaining balance. Note: loan maturity is 18 months from origination.

Take a look at Square Loans Fixed Payback Rate and Minimum Payment Requirement for more information

What happens if my sales don’t cover my minimum payment?

If your daily sales cannot 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 I have a minimum payment due, what happens if I make a payment on the same day?

If a payment is submitted the same day that you are debited for your minimum payment, the debited funds will be applied to the past due balance and the payment you initiated will be applied to your remaining loan balance. Note: All payments are final and will not be refunded.

Can I change the repayment rate?

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.

Who can I contact if I have questions about my minimum payments?

We can help! If you have any issues regarding your upcoming payment, please contact us, at least five business days before your minimum payment due date.

What happens if my loan matures but I still have an outstanding loan balance?

If you have an outstanding loan balance on the maturity date specified in your loan agreement and your loan matures, your repayment rate may be increased and your Square-linked bank account may be debited for the remaining loan balance. Read our Loan Maturity FAQ for more information.

Does Square offer any military benefits?

Under the Servicemembers Civil Relief Act (SCRA), you and your qualifying family members and dependents may be eligible for military benefits if you’re a servicemember or military personnel called to active duty or active service. To learn more about SCRA benefits or to submit a benefit request, please contact us.

Credit Reference and Refinance

Does Square provide payoff statements?

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.

Can I pay my loan off through a third party?

Yes! We accept third party payoffs. If you are paying off your loan through a third party, check out these steps in Paying Off Your Loan Through a Third Party.