Square Capital


Square Installments Loan Agreement
Terms and Conditions

This Square Installments Loan Agreement (“Agreement”) contains the terms of your agreement. If you reside in Florida or New York, you are entering the Agreement with Square Capital, LLC d/b/a Square Capital of California, LLC. If you reside in any other state, you are entering into the Agreement with Square Capital, LLC. Please read this Agreement and keep a copy.

You agree to pay the “Total of Payments” amount set out in the Summary of Loan Terms including any additional interest accrued resulting from late or missed scheduled payments.

1. Definitions

“Annual Percentage Rate” or “APR” means the annual rate of interest applied on your loan which will be reflected in the Summary of Loan Terms.

“Average Daily Balance” means the average of your Principal Balance for each day of a billing period.

“Check” means a check or money order you use to pay your loan. This includes any image of these instruments.

“Finance Charge” means the dollar amount the credit will cost you, as reflected in the Summary of Loan Terms.

“Interest Charges” means any charges to your loan based on the application of the Periodic Rate to the Principal Balance.

“Military Borrower” means (1) a “covered borrower,” as that term is defined in 32 CFR Section 232.3(g), and includes a regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of 30 days or fewer; or (2) a dependent of a member of the Armed Forces on active duty as described in (1).

“Payoff Amount” means the remaining Principal Balance plus any unpaid accrued interest.

“Periodic Rate” means the Annual Percentage Rate divided by 12.

“Principal Balance” means the amount financed, less any principal reductions that have been made over the term of the loan.

“Summary of Loan Terms” means Truth in Lending Disclosures provided to you prior to executing this Agreement, pursuant to the federal Truth in Lending Act and Regulation Z.

“We,” “us,” “our,” and “Square Capital” means either Square Capital of California, LLC or Square Capital, LLC as set forth above and includes its agents, authorized representatives, successors, and assignees.

“You” and “your” means the person applying for the loan; any person responsible for paying the loan; and any person responsible for complying with this Agreement.

2. How We Apply Your Payments

We will apply payments in the following order:

a. We generally apply payments first to accrued interest, and then to the Principal Balance.

b. We generally apply any payment more than the required minimum payment to the Principal Balance and will not consider it a payment of the next payment due.

3. Prepayment

You may prepay your loan in any amount at any time. There is no penalty for early payment of all or any part of your loan.

4. Making Your Loan Payments

Your payment must be made in U.S. dollars from a valid U.S. deposit account in a form acceptable to us. Conforming payments can be made in the following ways:

a. Automatic Payment. You may enroll in automatic payments during the application process. Additional disclosures will be available at the time of enrollment. By enrolling in automatic payments, you authorize us to debit your bank account by ACH transfer for the payment amount due on each due date.

b. Payment by Mail. Send Checks at least 10 days before your due date to:

Square Capital Installment Payment Center
29052 Network Place
Chicago, IL 60673-1290

5. Interest Charges

The Interest Charges on your loan will be calculated as follows:

a. The interest owed for a billing period will be the Average Daily Balance, multiplied by the Periodic Rate.

b. The interest owed for a billing period will be paid first from any monthly payment. The remainder will be applied as a reduction of the Principal Balance.

6. Scheduled Payment

a. The payment schedule is set out in the Summary of Loan Terms. Your first payment will be due one month after the date you executed this Agreement and monthly thereafter (“Monthly Anniversary”) provided that if you executed this Agreement on the 29th, 30th, or 31st of a month, your due date will be the 1st of the month after next. For example, if you executed your loan on January 29th, then your first payment will be due on March 1st, and payments after that will be due on the 1st of each of the following months. You will receive a payment due email before your due date, which will include:

  • The scheduled payment due including Interest Charges;
  • Information about how to obtain your Payoff Amount; and
  • The payment due date.

b. Statements for this loan are separate from other Square, Inc. products for which you may have an account and those account statements will not include the terms of this loan.

c. You should ensure emails from Square Capital are not being filtered out of your inbox or sent to a junk folder. If you do not receive an email, your payment will still be due on your regularly scheduled monthly due date.

d. If you miss a payment, your next payment must include the originally scheduled payment and the missed payment.

7. Finance Charge

The Finance Charge will be calculated assuming that every scheduled payment will be made on time and for the scheduled amount for the life of the loan. The total amount of finance charges you pay may differ from the Finance Charge in, and your final payment may vary from, the Summary of Loan Terms for a variety of reasons, including but not limited to late payments, missed payments, or changes to your due date. You agree to pay any additional interest accrued as a result of late or missed payments. No late fees will apply. All outstanding principal and interest will be included in the final payment.

8. Account Information

Information about your account will be provided through regular monthly emails that contain an account statement that may include:

a. Your next scheduled payment amount including Interest Charges;

b. Your next due date;

c. Information about how to obtain your Payoff Amount; and/or

d. Notification of any additional information we require you to provide.

9. Payment Processing

a. We may accept and process payments without losing any of our rights. We may resubmit and collect returned payments electronically. If necessary, we may adjust your loan to correct errors, process returned and reversed payments, and handle similar issues.

b. We will only accept payments made electronically from your bank account or Check payments that you send us. We will not accept or credit any other form of payment, including cash payments. We are not responsible if your financial institution rejects a payment you make. You will be responsible for any fees charged by your financial institution.

c. We may withdraw the funds from your deposit account as early as the same day we receive your payment.

10. Checks with Restrictive Words, Conditions, or Instructions

You agree not to send us Checks bearing restrictive words, conditions, limitations or special instructions or send any accompanying communications with any payment to any address. If you send such a payment, we may reject it and return it to you. We may also accept it and process it without losing any of our rights. This includes Checks marked “Paid in Full” or similar language. This also includes all accompanying communications.

11. Closing Your Loan

When your loan is paid in full, your obligations under this Agreement will be satisfied. Your Payoff Amount or your final payment amount may differ depending on the timing and amount of payments made throughout the loan.

12. Default

a. Unless expressly prohibited by law, you will be in default on your loan if:

  • You do not make any scheduled payment when it is due;

  • Any payment you make is rejected, not paid or cannot be processed;

  • You file or become the subject of a bankruptcy or insolvency proceeding;

  • You are unable or unwilling to repay your obligations, including upon death or legally declared incapacity;

  • We determine, in good faith, that you made a false, incomplete, or misleading statement to us, or you otherwise tried to defraud us;

  • You do not comply with any term of this Agreement or any other agreement with us; and/or

  • You permanently reside outside the United States.

b. If you are in default, we may take certain actions with respect to your loan, without notifying you, unless notification is required by law. For example, depending on the default, we may take the following actions:

  • Charge you the fees disclosed in your Summary of Loan Terms, unless prohibited by law;

  • Demand that you immediately pay the outstanding Principal Balance, and Interest Charges owing on your loan;

  • Continue to charge you Interest Charges as long as your balance remains outstanding;

  • Close your loan, at which point the outstanding Principal Balance, and Interest Charges will be immediately due and payable; and/or

  • Bring a claim in arbitration against you, or pursue another action that is not prohibited by law. If we prevail, you agree to pay our court costs, expenses and attorney’s fees, unless the law does not allow us to collect these amounts.

13. Refunds

Refunds are subject to the merchant’s refund policy. Any refund issued by the merchant will be reflected in your loan.

14. Personal Financial Information

a. We need information about you to manage your loan. You promise to give us personal financial information about you that we may reasonably request from time to time. This includes:

  • Your legal name;

  • A valid U.S. mailing address and residential address (if different);

  • Your date of birth;

  • Your Social Security number;

  • Your telephone number(s); and

  • Your employment and income information.

b. You promise to promptly notify us of any changes to the personal information we request from you, including but not limited to your name, mailing address, email address or telephone number. You may notify us by sending an email to installments@squareup.com. In doing so, you agree that you will not give us false information or signatures, electronic or otherwise, at any time. We may ask you for additional documents to verify any changes. We may take action if we cannot verify your information or if you do not provide it as requested, at which point any outstanding Principal Balance and Interest Charges will be immediately due and payable.

15. Age and Residency

By entering into this Agreement, you agree that you are at least 18 years of age or older and of sufficient legal age to enter into a contract in the state where you reside and you are a resident of the United States when you execute this Agreement.

16. Communications and Contact Information

a. Unless prohibited by law, you agree that we may communicate with you by mail, telephone, email, fax, prerecorded message, automated voice, text message or other means regarding your loan.

b. You agree that we may contact you at any telephone number (including a mobile telephone number) that you provide us, and use an automated telephone dialing system or similar device to do so. You agree that we may monitor or record any conversation or other communication with you.

17. Loan Purpose

You acknowledge that Square Capital is offering this loan for personal, family, or household purposes.

18. Authorization to Obtain Credit Report and Credit Reporting

a. You give Square Capital authorization, during the term of the credit extended, to obtain consumer reports and related information about you from one or more consumer reporting agencies such as TransUnion, Experian, and Equifax, to evaluate any credit extended through this Agreement.

b. If you believe that we have reported inaccurate information about your loan to a credit bureau or other consumer reporting agency, notify us in writing at:

Square Capital
℅ Installments Program
1455 Market Street, Suite 600
San Francisco, CA 94103

c. When you write, tell us the specific information that you believe is incorrect and why you believe it is incorrect.

19. Loan Documents

a. The following documents govern your loan with us:

  • This Agreement;

  • Summary of Loan Terms/ Truth in Lending Disclosure;

  • Any privacy notices we may send to you;

  • Any other documents and Disclosures relating to your loan, including those provided to you electronically or available online; and

  • Any future changes we make to any of the above documents.

b. Please read these carefully and keep them for future reference.

20. The Law That Applies to Your Agreement

You agree that the state that is listed in the address that you provided in the loan application is the state (“State”) this Agreement is made and entered into. Further, this Agreement and any dispute arising hereunder will be governed by the laws of that State and/or applicable federal law (including the Federal Arbitration Act), without regard to that State’s choice of law or conflicts of law principles that would require application of law of a different jurisdiction.

21. Severability

Except as otherwise provided herein, if any provision of this Agreement is held to be invalid or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions of this Agreement.

22. Delay of Enforcement and Waiver

We will not lose any of our rights if we delay or choose not to take any action for any reason. We may waive our rights without notifying you. For example, we may waive your Interest Charges without notifying you and without losing our right to charge them in the future.

23. Assignment

a. This Agreement will be binding on, and benefit, any of your and our successors and assigns. You may not sell, assign or transfer your loan or this Agreement to someone else without our written permission. We may sell, assign or transfer your loan and this Agreement in whole or in part without your permission and without prior notice to you. Any assignee or assignees will take our place under this Agreement. You must pay them and perform all of your obligations to them and not us. If you pay us after we notify you that we have transferred your loan or this Agreement, we can return the payment to you, forward the payment to the assignee, or handle it in another way that is reasonable.

b. If this Agreement is sold or otherwise transferred, the borrower’s rights under the law or under this Agreement are in no way altered or impaired.

24. Entire Agreement

This Agreement constitutes the current, sole and entire agreement between you and us with respect to this loan, and any and all prior terms and conditions with respect to the loan are superseded by this Agreement. You acknowledge and agree that no oral representations, practice or course of dealing between you and us, shall vary, modify or amend the terms and conditions of this Agreement. Any failure to exercise, or delay by us in exercising, any right or remedy shall not operate as a waiver thereof.

25. Binding Individual Arbitration

a. This arbitration provision does not apply to Military Borrowers.

b. You and Square Capital agree to arbitrate all disputes arising under or in connection with this Agreement or our relationship (collectively, a “Claim”). This includes Claims made by or against anyone connected to you or us, including any of our parent company, subsidiaries, affiliates, agents, employees, predecessors, successors, or assigns and any authorized users or beneficiaries of the Square Capital program.

c. Arbitration is more informal than a lawsuit in court and seeks to resolve Claims more quickly. Instead of a judge or a jury, the Claim will be decided by a neutral arbitrator.



f. Individual Claims filed in small claims court are not subject to this Arbitration Agreement, as long as the Claim remains in small claims court.

g. If any provision of this arbitration is found unenforceable, the entire arbitration agreement shall be terminated. The Arbitration Agreement shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (“FAA”).

h. All Claims shall be resolved finally and exclusively by binding individual arbitration with a single arbitrator administered by the American Arbitration Association (“AAA”) according to this provision and the applicable AAA rules, which may limit the discovery available to you or to us. You can obtain copies of the AAA rule and forms by contacting AAA at 1-800-778-7879 or www.adr.org. Any arbitration hearing that you attend will take place in the federal judicial district where you reside as of the date you execute this Agreement. Square Capital will pay all arbitration fees.

i. The arbitrator will apply applicable substantive law consistent with the FAA and applicable statutes of limitations, and will honor claims of privilege recognized at law.

j. The arbitrator’s award shall be binding on the parties and may be entered as a judgment in any court of competent jurisdiction.

26. Military Annual Percentage Rate Statement:

a. Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). To hear these disclosures over the telephone, please call the following toll-free number: (855) 442-0749.

b. The amount of your payment is determined by the amount of funds that we lend to you, the interest rate we charge, and the term of the loan.

27. State Notices:

For CALIFORNIA residents:


This loan is made pursuant to the California Finance Lenders Law, Division 9 (commencing with Section 22000) of the Financial Code.

A married applicant may apply for a separate account.

As required by California law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

For COLORADO residents: If we prevail in a claim in an arbitration we bring against you or pursue another action that is not prohibited by law, your obligation to pay attorney’s fees pursuant to Section 12(b) will be limited to 15 percent of the unpaid debt after default and only those attorney’s fees for referral to an attorney that is not a salaried employee of Square Capital or such additional fees as may be directed by a court.

For NEW JERSEY residents: The section headings of this Agreement are a table of contents and not contract terms. Because certain provisions of this Agreement are subject to applicable law, they may be void, unenforceable or inapplicable in some jurisdictions. None of these provisions, however, are void, unenforceable or inapplicable in New Jersey.

Executed via Electronic Signature