Manage a loan for a sold or closed business
About managing loans for a sold or closed business
Before selling or buying a business that has an active Square loan, be sure to make arrangements for the business to repay the loan balance at the time of sale or closure. To pay off your remaining loan balance, you can submit a payment from the Loans tab in Square Dashboard.
If you have already completed the sale, please contact the contact us so we can discuss next steps.
Before you begin
If you close or sell your business without repaying your outstanding loan balance, your loan will be considered in default under your loan agreement.
If your business is unable to repay the full outstanding loan balance at the time of sale or closure, contact us as soon as possible so we can get a better understanding of your situation. There may be an alternative repayment option to accommodate your circumstances.
You can’t transfer ownership of a Square account that has a Square loan. For more information, learn more about how to transfer ownership of your Square account. If you want to link an existing loan to a new owner or account, please contact the Square Loans team.
If you have a pending loan application, you can cancel it to transfer your Square account. Visit the Loans tab in Square Dashboard to manage your loans.
Loan offers will be disabled for 30 days after transferring the ownership of your Square account.
Any authorised individual associated with the business can make loan payments on behalf of the business.
If the loan is not repaid at the time of sale and the business begins processing payments through a new Square account after the sale, the repayment rate may be applied to the new Square account’s card sales until the loan is paid off.
Review required actions for your business
If a business with a Square loan undergoes a change of ownership, the new business owner can make loan payments. If the loan is not repaid at the time of sale and the business begins processing payments through a new Square account after the sale, the repayment rate may be applied to the new Square account’s card sales until the loan is paid off.
Please contact us to add the new account as a payer towards your business’s loan. The individuals are able to take action on the loan, including making payments and agreeing to alternative payment arrangements. Consent for this authorisation will be valid until revoked by you. We’ll need the following information about the new owner:
- First name and surname
- Contact email address
- Phone number
If you plan to close a business with an outstanding Square loan, contact us as soon as possible. We may be able to provide an alternative repayment option to accommodate your circumstances.
If your business is unable to repay the full outstanding loan balance at the time of sale or closure, contact us as soon as possible so we can get a better understanding of your situation. We may be able to provide an alternative repayment option to accommodate your circumstances
If your business was a legal business entity, such as a limited liability company or a partnership, we may request the following documentation:
The notice of dissolution that your business provided to creditors, along with all related documentation and the date the notice was sent.
Contact information for the registered agent or the person managing the winding up process.
If your business was a sole proprietorship, no documentation is needed.