Manage a loan for a sold or closed business
About managing a loan 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.
Before you begin
For sole proprietors, the ability to transfer ownership of a Square account isn’t available for businesses with a Square loan. If you have a pending application, you can cancel it to transfer your Square account. Visit the Loans tab in Square Dashboard to manage your loans.
Any authorized 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 authorization will be valid until revoked by you. We’ll need the following information about the new owner:
- First and last name
- 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 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.