Square Loans FAQ

Find answers to commonly asked questions regarding Square Loans.

How Square Loans Works

What are Square Loans?

Square Loans provide access to funds to grow your business, with no hidden fees or lengthy applications to fill out. Upon approval, funds are deposited as soon as the next business day – so you can invest in your business immediately to increase inventory, purchase equipment, hire employees and more. 

What is the repayment length of my loan?

Your loan must be fully repaid within 18 months. Learn how to download your loan agreement in Navigating your Square Loans Dashboard. 

Is there a minimum payment?

Yes, you’re required to pay at least 1/18 of your initial loan balance every 60 days to make consistent repayment progress. For most Square Loans merchants, regular processing volume will cover the minimum payment.

Note: If you just make the minimum payment, you’ll only pay down half your total owed balance of your loan. You’ll owe the remaining balance upon the maturity date of your loan, and may be debited for that amount.

What interest rates and fees apply?

There are no ongoing interest charges. Instead, you’ll pay one fixed loan fee to borrow the loan. The loan fee is the difference between the total owed amount and the initial loan amount. The loan fee will never change, regardless of how quickly or slowly the loan is repaid. 

When will I receive the funds?

Upon approval, funds will be deposited as soon as the next business day.

However, please know that the time that it takes for those funds to be available to you will depend on your bank’s processing speed. It can take them up to three business days to process this deposit. For more information about your bank’s processing speed, please contact your bank. 

Can I cancel my loan?

You can cancel your loan application while it’s still processing, or within two business days of loan origination. For more information, view Cancelling your Square Loan.

Can I change my loan amount after funds have been deposited?

Once you have applied for an offer, we’re unable to change the loan amount. If you’d like to cancel your loan after it’s been funded, you can do so before a decision is made on your application or within two business days of funding. Please note, if you cancel your loan, a subsequent offer is not guaranteed.

Can I change my repayment rate after I accept my offer?

You’re not able to adjust your repayment rate after you apply for your offer. The repayment rate is tied directly to your loan offer size and is based on a number of factors, including your business’s history with Square, as well as payment processing volume.

Does applying for a Square Loan hurt my credit score or require collateral?

Applying for a Square Loan doesn’t affect your credit score. Additionally, we don’t require collateral or a personal guarantee.

Square Loans Collateral

Is collateral required to obtain a Square Loan?

Square Loans do not require collateral.

What if I was asked about a security interest that I don’t recognize? 

Sometimes, institutions may not successfully discharge a previous registered secured interest on the Personal Property Securities Act (PPSA). If you’re unsure, the best practice is to reach out directly to the secured party for confirmation.  

Is a personal guarantee required?

Square does not ask for a personal guarantee on your loan.