Repay your loan
About repaying your loan
Repayment of your Square loan starts on the repayment start date specified in your loan agreement. A fixed percentage of your business’s daily card sales is automatically deducted and applied toward your loan balance until your loan is repaid in full.
Square loans are designed to be paid back within 12 months if your business’s payment processing does not change based on our initial estimations. Loan maturity is 18 months from origination, which is the date your loan is due in full.
If there hasn’t been any changes to your business and you maintain regular processing volume through Square, making your minimum payments on time shouldn’t be an issue. We encourage you to review the minimum loan payment requirements so you know what to expect if your business’s card sales change during repayment.
If you’ve chosen to prepay your loan by accepting a mid-plan offer, your existing loan balance will be paid off with a portion of the proceeds of your new Square loan. Any remaining proceeds from the new loan will be deposited into your linked bank account. Mid-plan offers are subject to approval and may be available based on your Square processing history and loan repayment history. Accepting a mid-plan offer is optional, and you’re under no obligation to accept it.
Before you begin
If you make the minimum payment of 1/18th of your initial loan balance every 60 days, you’ll only pay down half your total loan balance in 18 months.
Your repayment rate is determined on your business’s card processing, your offer size, and other business factors. It’s designed to help your business stay on track with paying back the loan within a year. You can adjust the repayment rate of your offer by changing the loan offer amount prior to applying for the loan, but your rate can’t change once you’ve accepted an offer.
Making a payment will not disable your repayment rate, and this rate can’t be adjusted once your loan is accepted. The repayment rate will continue to be applied until the loan is repaid in full.
You can make additional payments to your loan at any time at no additional cost. The cost of your loan does not change by making prepayments.
If your daily sales don’t cover the minimum payment, Square will debit the remaining minimum payment from your Square-linked bank account.
All payments are final and will not be refunded. If a payment is submitted the same day that you are debited for your minimum payment, the debited funds will be applied to the past due balance and the payment you initiated will be applied to your remaining loan balance.
Make a loan payment
Sign in to Square Dashboard and click Money > Loans.
You’ll see an overview of prior payments, how much you have left to cover of your current balance, and a breakdown of each payment.
Click Make a payment and provide the desired payment amount.
Review and confirm your payment.
When you submit a prepayment, Square may first apply any pending funds from your card sales and then debit any remaining amount from your linked bank account. A debit will only be initiated if the pending funds don’t cover the entire prepayment.
If you fully prepay your loan, your business’s loan eligibility will be re-evaluated. We can’t guarantee that you’ll receive a new offer after you make an additional payment or pay off your loan. It can take up to 10 working days for payment confirmation and for your account to be evaluated for new loan offers, during which time you will not have any loan offers visible in Square Dashboard. If you had a Square loan offer prior to paying off your loan, submitting a prepayment will expire any existing offers.
If you need a loan payoff statement, contact us so this can be provided to you.
Add multiple business locations or accounts to repay a loan
Upon loan approval, the loan is tied to the specific account location that applied for the loan. If you have multiple locations, you may have the option to add additional Square locations as payers towards the loan. The repayment rate applies to all business locations and goes towards paying down the loan balance.
Each individual Square account is tied to a unique email address. If your business begins to take payments while logged into another Square account, your card sales on that account don’t automatically go towards the repayment of your loan. If you want to continue processing on another Square account, you may have the option of adding that account as a payer toward your loan.
If you would like us to link more of your locations or accounts to your loan, contact us.
Minimum loan payments
One of the benefits of Square Loans is flexible repayments; paying a fixed percentage of daily card sales allows you to pay more when your business is busy and less if things slow down. However, there are minimum payment requirements.
A minimum payment is 1/18 of your initial loan balance and is due every 60 days. We understand there are ups and downs for every business, but all loans require a minimum payment to be made every 60 days. If you have a minimum payment coming up, you’ll receive a reminder via email and in Square Dashboard. Review the example below when making only a minimum loan payment:
Initial loan balance: £1,140 (£1,000 loan amount + £140 borrowing cost)
Minimum payment: £63.33 every 60 days
Balance at loan maturity (18 months): £570.00
If you only make the minimum payment every 60 days, at loan maturity you will only have paid off £570.00. Your business’s linked bank account will be debited for the remaining £570.00.
If you make the minimum payment of 1/18th of your initial loan balance every 60 days, you’ll only pay down half of the loan balance in 18 months. You owe the remaining balance upon the maturity date of your loan and may be debited for that amount.
Apply for financial hardship
Financial hardship encompasses situations where individuals or businesses are unable to meet financial obligations or face significant adverse events affecting operations. Common events that may cause financial hardship include:
Cash flow constraints
Unexpected expenses
Death of a family member
Illness or injury to yourself or to your family member
A decrease in business activity
Domestic violence
Divorce or separation with your partner
Natural disaster
If any of the events listed above apply to yourself or any other reasons that may cause financial hardship, contact us as soon as possible so we can get a better understanding of your situation.
If you apply for financial hardship at Square, there are no fees or costs when applying aside from the fee you already agreed to on your loan.