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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.

Pros

  • 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

Cons

  • 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.

Alternative sites like Square Capital

  • LoanBuilder, A PayPal Service
  • PayPal Working Capital
  • American Express® Business Line of Credit
  • FundingCircle
  • Fora Financial
  • OnDeck
  • National Business Capital

1. LoanBuilder, A PayPal Service

LoanBuilder business loans

4.2
★★★★★

Finder score

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.

2. PayPal Working Capital

PayPal Working Capital loans

Go to site
on Businessloans.com's secure site
Read review
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.

3. American Express Business Line of Credit

American Express® Business Line of Credit

4.4
★★★★★

Finder score

Go to site Read review
American Express Business Line of Credit is one of the most popular financing choices for small e-commerce businesses. If you’re having an off season or need continual financing, American Express Business Line of Credit 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. To qualify, you’ll need to have a min credit score of 660, be in business at least a year and make $3,000 a month for the last three months, 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 American Express Business Line of Credit, as opposed to Square Capital’s one-day turnaround.
The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
All businesses are unique and are subject to review and approval.

4. Funding Circle

Funding Circle business loans

4.4
★★★★★

Finder score

Read review
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 7.49%. 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 4.49% to 10.49% 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.

5. Fora Financial

Fora Financial business loans

4.1
★★★★★

Finder score

Read review
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.

6. OnDeck

OnDeck short-term loans

4.6
★★★★★

Finder score

Read review
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.

7. National Business Capital

National Business Capital business loans

4.3
★★★★★

Finder score

Read review
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 more business loan providers

1 – 5 of 5
Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$5,000,000
Varies by lender
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Olympus Business Capital
Finder Score: 3.8 / 5: ★★★★★
Olympus Business Capital
$500
$100,000
Not stated
Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month
No credit needed. Funding up to $100k with a variety of finance options to best fit your business needs.
Go to site
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express® Business Line of Credit
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren’t currently an Amex customer.
Fundible
Finder Score: 4.9 / 5: ★★★★★
Fundible
$1,000
$10,000,000
Rates start at 1% per month
500+ FICO score, $200,000 annual revenue, 6 months in business, most recent business bank statements
Same day approval
Go to site
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
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Written by

Anna Serio

Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full profile

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