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7 alternatives to Square Capital business loans

Compare other lenders with competitive rates, fast turnaround and more.

Square Capital offers online and off-line sellers a merchant cash advance with a wide range of loan amounts and a flat fee. The only requirements? Your business must use a Square point of sale system, make at least $10,000 a year and process weekly credit or debit card payments through Square. If you’re not eligible for business financing from Square Capital or just want to compare similar providers, here are some alternatives.


  • No formal application
  • No credit requirement
  • Minimum loan amount starting at $500
  • Find out if you’re eligible on your Square dashboard
  • Funds in as little as one business day


  • Can’t choose loan amount you prequalify for
  • Must use Square
  • Daily repayments
  • Need to make at least one sale a week on Square to qualify

Don’t have Square? Want something that’s open to more point-of-sale systems — or offers something other than a merchant cash advance? We take a look at seven lenders like Square that might be able to get your business the funding it needs.

1. LoanBuilder, A PayPal Service

LoanBuilder business loans

4.24 / 5

This online lender specializes in short-term loans for small and midsize businesses in a pinch. LoanBuilder offers slightly higher amounts than Square Capital from $5,000 to $500,000. The loan is also more customizable, allowing borrowers to choose their loan amount and term to adjust repayments.
Like Square Capital, LoanBuilder’s loans come with a flat fee and no interest payments. While this might make it easier to estimate your costs, it’s typically more expensive than paying interest and means you can’t save by paying off your loan early. To qualify, your business also has to meet tighter eligibility requirements, like making $42,000 a year, being at least one year in business and having a personal credit score of at least 550.

  • Personalized customer service
  • Choose your loan amount and term
  • Not limited to PayPal users
  • Loans up to $500,000
  • Funds in as little as one business day
  • Higher minimum loan amount of $5,000
  • Weekly repayments
  • Higher annual revenue requirements
Loan amount$5,000 – $500,000
APR6.49% to 19.31%
Loan Term3.25 to 12 months
RequirementsAnnual business revenue of $42,000+, 9+ months in business, 620+ personal credit score

2. PayPal Working Capital

PayPal Working Capital loans

This PayPal option is similar to Square: You borrow funds based on your PayPal transactions and then repay it plus a fixed fee through your PayPay sales. It’s one of the quickest financing options out there, potentially depositing funds in your account within minutes after applying.
Like with Square, PayPal Working Capital doesn’t involve a credit check or require your business to be around for a minimum amount of time. Applying is similarly painless — no documents involved — and PayPal lets business owners choose how much they want to borrow.
There is no minimum loan amount required, but first-timers are limited to borrowing 30% of their yearly PayPal sales or up to $300,000. After paying off your first two loan with a percentage of each PayPal sale, your business can potentially qualify for an even larger loan amount up to $125,000. Like Square, this type of financing only works with one point of sale system, so it’s not great if your business relies heavily on other types of payments.

  • Funding in minutes
  • No credit check or documents required
  • No minimum loan amount
  • Choose how much you want to borrow
  • Limited to PayPal payments
  • Repayments deducted from each sale
Loan amount$1,000 – $300,000
APRFee based
Loan TermVaries
RequirementsHave a PayPal Premier or Business account for 3+ months and make $15,000 to $20 million in PayPal sales.

3. Kabbage

Kabbage small business loans

4.15 / 5

Kabbage is one of the most popular financing choices for small e-commerce businesses. If you’re having an off season or need continual financing, Kabbage might be a better fit than Square Capital. That’s because you’re less likely to qualify for a Square Capital loan if you don’t make regular sales — at least one a week on Square.
Kabbage’s lines of credit are simple to access, thanks to its Kabbage card, which you can swipe online or at a store to make a quick draw from your funds. Its line of credit give you access to larger amounts of funds, with limits ranging from $500 to $250,000. To qualify, you’ll need to make $4,200 a month for the last three months or $50,000 annually, which is higher than Square Capital’s requirement.
Applying to open your credit line can take a few more minutes than getting funds through Square: You’ll actually fill out an application and link your business accounts. Unlike Square, it considers your personal credit score, though it doesn’t give it as much weight as more traditional lenders. And it can take up to three days to get your funds with Kabbage, as opposed to Square Capital’s one-day turnaround.

  • Higher loan amounts up to $250,000
  • Easy access to credit line with Kabbage card
  • Monthly repayments
  • Higher annual revenue requirements
  • Can’t save by repaying early
  • Funds can take up to three business days
Loan amount$500 – $250,000
Min. Credit ScoreNo set minimum
Loan Term6 to 12 months
Requirements1+ years in business, $100,000+ annual revenue or $4,200+ monthly revenue over last 3 months

4. Funding Circle

Funding Circle business loans

4.4 / 5

Funding Circle could be a good alternative to Square Capital if your business wants to borrow a slightly larger amount with a longer loan term. Your business can borrow between $25,000 and $500,000 with up to 5 years to pay it off. These term loans come with competitive rates ranging from Starting at 4.99%. Merchant cash advances like those offered by Square tend to be more expensive.
Funding Circle is not great in an emergency since it can take more than five days to get your funds after you apply. It might not have a revenue requirement, but it’s more selective in other areas: Your business must be at least two years old and a part of an approved industry. Business owners must have a personal credit score of at least 620. Another drawback is that Funding Circle loans also come with a 0.99% to 6.99% origination fee, which comes directly from your loan amount when you apply. And some borrowers have also complained about getting robocalls from Funding Circle, even after they paid off their loan.

  • Larger amounts up to $500,000
  • No minimum revenue requirements
  • Longer loan terms up to 5 years
  • Monthly repayments
  • High loan minimum of $25,000
  • Origination fee
  • Takes at least five days to get funds
  • Personal information is shared with third parties
  • High-risk industries and startups won’t qualify
Loan amount$25,000 – $500,000
APRStarting at 4.99%
Loan Term3 to 120 months
Requirements660+ personal credit score, 2+ years in business, for-profit business in an approved industry, not located in Nevada

5. Fora Financial

Fora Financial business loans

4.1 / 5

Go to site
on Fora Financial's secure site

Fora Financial is an online lender that offers short-term business loans and merchant cash advances. It’s a startup-friendly lender that offers a discount for paying off your loan early — up to 10 cents per dollar you owe.
Fora Financial’s loans run slightly higher than Square Capital, from $5,000 to $500,000. To qualify, you’ll need to make $12,000 a month and be in business for at least six months — stricter requirements than with Square Capital.
Getting funds from Fora might be faster than borrowing from a bank, but its three-day turnaround time is three times as long as Square Capital. Its merchant cash advances also come with a flat fee of 1.1 to 1.3 times the loan amount. With its term loans comes with a 2% to 4% origination fee. And while it offers benefits for paying off your loan early, being able to do so might be difficult with loan terms 6 to 15 months.

  • Discount for prepayment
  • Larger loan amounts up to $500,000
  • Choice of loan amounts
  • Origination fee
  • Merchant cash advance can be expensive
  • Short loan terms
  • Higher revenue requirements
Loan amount$5,000 – $500,000
Loan Term4 to 15 months
Requirements6+ months in business, $12,000+ monthly revenue, no open bankruptcies

6. OnDeck

OnDeck short-term loans

4.6 / 5

OnDeck is a direct online business lender that offers two different kinds of financing: term loans and lines of credit. It uses alternative sources of data to review your application, so your credit score and net revenue aren’t the only things that matter on your application.
OnDeck offers a wider a range of loan amounts than Square Capital, with loans starting at $5,000 and topping off at $250,000. More than that, it’s received rave customer reviews on sites like the Better Business Bureau and Trustpilot — something Square Capital lacks.
OnDeck’s application is more involved than Square Capital’s, however. To qualify, your business must make at least $100,000 annually, be at least one year old and have a credit score of at least 500. However, the two providers do have the same turnaround time of one business day. OnDeck works with over 700 industries, including some that are considered high risk, including healthcare and restaurants.

  • Higher loan amounts up to $250,000
  • Funds in as little as one business day
  • Positive customer reviews
  • Origination fee
  • Not great for startups
  • Higher minimum loan amount of $5,000
  • Daily or weekly repayments
  • Higher annual revenue requirements
Loan amount$5,000 – $250,000
APRAs low as 35%
Min. Credit Score600
Loan Term3 to 18 months
Requirements600+ personal credit score, 1 year in business, $100,000+ annual revenue

7. National Business Capital

National Business Capital business loans

Don’t have a lot of experience researching and comparing lenders? National Business Capital might be a good place to start looking for an alternative to Square Capital. This lender and connection service claims to connect 90% of people who fill out its online application with lenders that they might be eligible for.
Loan amounts run higher than Square Capital, from $10,000 to $5,000,000. Such a wide range of loans comes with a wide range of terms, from 6 to 120 months. Its eligibility requirements are stricter than Square Capital’s: You must make at least $180,000 a year and have been in business for six months.
It might take a little longer to get your funds, too — sometimes days. And while it offers startup funding in the form of a credit card, business owners must have a credit score of 680 to qualify. National Business Capital loans can also be a bit expensive, costing as much as 30 cents for every dollar you borrow.

  • Compare multiple lenders at once
  • Higher loan amounts up to $5,000,000
  • Wider range of loan terms
  • High approval rate
  • Can take days to get your funds
  • Can be expensive
  • High minimum loan amount of $10,000
  • Higher annual revenue requirements
  • Personal information could be shared with third parties
Loan amount$10,000 – $5,000,000
Min. Credit ScoreNo minimum credit score
Loan Term6 to 120 months
RequirementsIn business for 3+ months, $120,000+ in annual revenue

Compare more business loan providers

Name Product Filter Values Loan amount APR Requirements

Fora Financial business loans
Finder Rating: 4.1 / 5: ★★★★★

Fora Financial business loans
$5,000 – $500,000
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.

Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★

Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.

National Funding business loans
Finder Rating: 4.75 / 5: ★★★★★

National Funding business loans
$5,000 – $500,000
4% to 8%
Be in business at least one year and make at least $150,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.

Fundbox lines of credit
Finder Rating: 4.2 / 5: ★★★★★

Fundbox lines of credit
$1,000 – $150,000
Not stated
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.

Bitty Advance business cash advances
Finder Rating: 2.8 / 5: ★★★★★

Bitty Advance business cash advances
$2,000 – $25,000
Not applicable
$5,000 monthly bank revenue, 6+ months in business, business bank account open 3+ months, 450+ credit score
With APRs in the triple digits, this is best saved as a last resort.

Compare up to 4 providers

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