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Square Capital Fixed Payback Rate and Minimum Payment Requirement

All loans through Square Capital are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Eligible Square merchants receive customized offers based primarily on account activity with Square. Upon approval, funds are deposited as soon as the next business day.

Fixed Payback Rate

You’ll repay your loan from a fixed percentage of your daily credit card sales through Square. You’ll pay more when business is strong, and less if things slow down. The fixed payback rate never changes. Keep in mind that your fixed payback rate is in addition to Square’s normal processing fees.

Note: Your fixed payback rate is not an interest rate. It’s the percentage of daily card sales that will be applied toward repayment of your loan balance.

Estimated Payback Within One Year

We take your business’s Square payment processing volume, account history, and payment frequency into account when determining your loan offers. Loans through Square Capital are designed to be paid back within a year if your business’s payment processing does not change based on our initial estimations.

Additionally, if there haven’t been any changes to your business and you maintain regular processing volume through Square, making your minimum payments on time shouldn’t be an issue. However, we encourage you to review the Minimum Loan Payment requirements so you know what to expect if your business’s card sales change during repayment.

Square Capital Status

If you’re a Square merchant eligible to apply for a loan through Square Capital, you’ll see loan offers presented in your online Square Dashboard. Upon acceptance and approval of a loan, you can monitor your repayment progress by logging into the Capital tab of your Square Dashboard.

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

Minimum Loan Payment

One of the benefits of a loan through Square Capital is flexible repayments – paying a fixed percentage of daily card sales allows you to pay more when your business is busy and less if things slow down. However, there are minimum payment requirements.

Minimum Payment: 1/18 of your initial loan balance is due every 60 days.

We understand there are ups and downs for every business, but all loans require a minimum payment to be made every 60 days. Additionally, the entire loan balance must be repaid within 18 months of loan approval. If you have a minimum payment coming up, you will also see a reminder banner on top of your Square Dashboard.

Minimum Payment Required Screen
Numbers are for illustrative purposes only.

Example Scenario: Only Making Your Minimum Payment

Initial Loan Balance: $1,140 ($1,000 loan amount + $140 borrowing cost)
Minimum Payment: $63.33 every 60 days
Balance at Loan Maturity (18 months): $570.00

If you only make the minimum payment every 60 days, at loan maturity you will only have paid off $570.00. Your business’s linked bank account will be debited for the remaining $570.00.

Note: If you just make the minimum payment of 1/18th of your initial loan balance every 60 days, you will only pay down half of the loan balance in 18 months. You will owe the remaining balance upon the maturity date of your loan and may be debited for that amount.

Take a look at Square Capital Loan Repayment or our Repayment FAQs for additional information about how repayment works with loans through Square Capital.

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