Square Loan Eligibility FAQ
For eligible Square sellers, Square offers business loans to grow your business. You can check your business’s eligibility by going to the Loans tab of your Square Dashboard and keeping an eye on your email inbox.
Numbers are for illustrative purposes only.
If you don’t see an offer in your Square Dashboard, your business isn’t currently eligible to apply for a Square loan. But keep in mind that Square accounts are reviewed for eligibility regularly. Offer eligibility is based on a variety of factors related to your Square account, including payment processing volume, account history, and payment frequency.
What happens now?
Keep processing with Square—and consider the eligibility factors below as you process! There’s no need to contact us or request an eligibility review. The review is automatic, and we will let you know via your Square Dashboard and by email if you are eligible for an offer— saving you time so you can focus on your business. Note: Square is unable to manually generate or predict offers; all merchants must qualify based on eligibility criteria.
How is eligibility determined?
There are many factors that may affect your eligibility, and accounts are evaluated as a whole. This means that meeting one or more eligibility factors doesn’t guarantee that you’ll be eligible for a loan offer— your business needs to satisfy all criteria to be eligible.
Your business’s Square processing volume is just one of many considerations used to determine eligibility. Here are a few examples of the things that are considered when evaluating your business for an offer:
Square processing volume. In general, businesses that have processed at least $10,000 or more in a year are more likely to be eligible for an offer.
Square payment frequency. The frequency of card payments you process through Square matters. If you consistently take payments, you’re more likely to get noticed. To us, a steady pattern of taking payments shows that you have a healthy business.
Your customer mix. A good mix of new and returning customers shows us that you’re growing in different ways. You can use Square's analytics tools to understand your customer base better.
A healthy, growing business. The size of your loan offer is generally shaped by how much you process through Square.
Why is my business not eligible for a loan right now?
Chargeback history. A chargeback happens when a customer disputes a charge from your business and contacts the card issuer to reverse it. Swiping chip credit cards is one way to increase your chargeback risk. Switch to a Square Reader for contactless and chip or learn how to better monitor payment cards to prevent chargebacks.
Multiple Square accounts. If you have multiple Square accounts or locations with outstanding Square loans, make sure that they are all processing consistently and current with loan repayment.
Failed debits. Your Square account is reviewed for failed debits due to insufficient funds. Please be mindful of the amount of funds available in your linked bank account to avoid failed debits.
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Take a peek at the business resource center for tips, advice and news on how to start, run and grow your business.
Become Eligible for another Square Loan
Square accounts — including accounts with an active loan — are reviewed for eligibility on a daily basis. If your business is currently repaying a loan, you may become eligible for another offer. However, offers are not guaranteed and we are unable to predict when your business may receive another offer. Loan offer details, as well as the timing of eligibility, may differ from your current Square loan, as each loan offer is unique and evaluated separately.
Please know that making an extra payment or paying off your loan early will not increase your chances of getting another loan offer through Square. Eligibility for another offer is not guaranteed, regardless of whether you prepay your current loan. Also, keep in mind that making a loan payment through the Square Dashboard will expire any existing loan offers.
What do you need to do?
Keep doing business as usual. You do not need to contact us or provide any additional information to become eligible for a subsequent loan offer. We look at many factors about your business to assess your eligibility, including the payments you process through Square and your history working with us. There are no long forms or significant paperwork to fill out, which means you have more time and resources to dedicate to running your business.
When will I become eligible for another loan?
We can’t predict when your business will be eligible for another loan offer. Square will automatically reevaluate your business’s offer eligibility, but there is no magic number for when another offer will be available. Remember each business is different and all accounts/locations are reviewed independently. Each loan offer is specific to the business and account evaluated for the offer.
We want to emphasize that we are unable to predict eligibility or offer amounts. Additionally, we are unable to manually create offers. You will need to have an offer already available on your Square Dashboard to apply for a Square loan.
How will I be notified?
If your business is eligible for another Square loan offer you'll be notified by email and your loan offer will appear in the Loans tab of your online Square Dashboard. Remember to check your Square Dashboard, that is where we primarily communicate with you about offers!
Square Loans are underwritten and issued by Square Financial Services, a Utah-Chartered Industrial Banks, Members FDIC.