Tips for Small Business Financing: How to Get Noticed by Square Capital
Applying for small business financing through traditional channels can be overwhelming — and may take loads of paperwork. Not to mention that after all that time and effort, there’s no guarantee that you’ll be approved.
That’s why we offer Square Capital — a program designed to take the headache out of the business financing process.
If we spot that you’re eligible to apply for a loan through Square Capital, we’ll proactively reach out to you (via email and in your Square Dashboard ) with a customized loan offer. You get just the right amount of financing that your business can support.
If you apply for a loan, we’ll do a quick review to confirm that your business is healthy and you’re in good standing with Square (for example, not a fraudster). Upon approval, the money will be deposited straight into your bank account as soon as the next next business day. (Check here to see if you are eligible).
Learn more about Square Capital.
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Our sophisticated tools are running every single day to find sellers who would be a good fit for offers through Square Capital. To date, over $1 billion in financing has been extended through Square Capital to over 105,000 independent businesses using Square.
So how do we determine if you may be eligible for a loan through Square Capital?
We look at many factors to determine where to extend loan offers. But generally, the more active you are on Square (and the more aspects of your business you run with Square), the more likely we are to offer you financing.
Key among those factors are:
- Processing volume: In general, we look for businesses that have processed at least $10,000 or more in a year. So the more you process with Square, the better.
- Recent payments: How recently have you taken a payment? One of our indicators is whether you’ve taken a payment at least once in the last week.
We also look at factors such as:
- Your history with Square: Seeing your history with Square helps us spot trends and understand how your business might grow in the future.
- Your activity level: Are you an active Square seller? The number and frequency of payments matters, too. If you take a bunch of payments often (say, every week), you’re more likely to get noticed.
- Your customer mix: Do you have a mix of new and returning customers? A diversity of new and returning customers shows us that you’re growing in different ways. You can use Square’s analytics tools to get a grasp on your mix of customers.
- Whether you have a healthy, growing business: The size of your loan offer can be correlated to your growth. The more you're growing (and the speed at which you grow), the larger your loan offer.
The goal of Square Capital is to help promising sellers grow their business (minus the friction of traditional financing programs). We’re here to help.
Square Capital, LLC is a wholly owned subsidiary of Square, Inc. All loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank. Member FDIC, located in Salt Lake City, Utah. Loans are not issued to borrowers in ND. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Actual fee depends upon payment card processing history and loan amount. A minimum payment of 1/18th of the initial loan balance is required every 60 days and full loan repayment is required within 18 months. All loans are subject to credit approval.