Square Installments 
is no longer available

While the difficult decision has been made to discontinue Square Installments, we’re committed to helping you move forward. This page will give you some key information to look out for when you’re deciding on a new financing option for your customers.

Choosing a new financing option for your customers

There are plenty of point-of-sale financing products that can help you bring in more business. As you’re shopping around, consider these basic characteristics to help make the best decision for you and your customers.


Make sure the terms are fair, and clearly laid out—for you and for your customers.


Customers (and business owners) aren’t financial gurus. Is the product easy for anyone to use?


What customers see should be what they pay. No surprise fees or deferred interest.

Key factors to consider

Financing products aren’t one-size-fits-all. Your business has unique needs, and your customers do too. It’s important to look for a product flexible enough to meet both. Be sure to also look out for fees and interest terms that some financing products don’t advertise.

Type of sale

Take into account whether a financing provider can work in-store, through invoices, or online.

Industry specialization

Some financing providers have financing options that are tailored to different industries, such as home improvement, healthcare, retail, etc.

Size of your business

Some financing providers charge different rates depending on the size of your company or your transaction volume.

Ticket size and term lengths

Most customers prefer monthly payments in the $100-150 range. If you have larger average ticket sizes, longer term lengths will give your customers more manageable payments.

Deferred interest

Look out for this. Lenders may offer you lower transaction rates, and then offset it by charging your customers deferred interest. Customers may be caught off-guard by these charges, and it can reflect negatively on your business.

0% APR terms

Customers love no-interest or same-as-cash financing because they’re financing at no extra cost. However, these rates may be subject to late payment fees and are typically only offered to consumers with higher credit scores.

Terms to know

  • Annual percentage rate (APR)

    The annual percentage rate is the total cost of a loan. It includes the interest rate and any other fees assessed (the origination fee, for example). It is the most useful basis for comparing different types of debt.

  • Deferred interest

    Deferred interest is the most common way that lenders sneak extra charges into no-interest deals. This arrangement allows a customer to temporarily pay less interest than lenders typically charge during a promotional period. However, if they miss a payment deadline, then interest going back to the date of the purchase will be added on top of the remaining balance and the interest charges will start piling up.

  • Installment loan

    A loan that is repaid over time with a set number of regularly scheduled payments.

  • Open-end credit

    Pre-approved loans that may be used repeatedly up to a certain limit. It is also known as revolving credit.

  • Pre-approval

    Being pre-approved means a customer has actually been approved by a lender for a specific loan amount. Pre-approval may require them to first provide documented financial information (pay stubs, statements, obligations, credit report, etc.).

  • Pre-qualification

    Being pre-qualified means a lender has decided a customer is likely to be approved for a loan up to a certain amount, based on their current finances. There are no guarantees they’ll actually be approved for the same amount.