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Square Capital business loans
Min. Amount
$300
Max. Amount
$250,000
APR
Varies

Our verdict

Customized loan offers based on your Square sales, but only if you’re invited.

Square Capital is an invitation-only advance on the sales retailers make through Square's point-of-sale (POS) system. It's essentially a merchant cash advance, meaning that you pay a fixed fee rather than interest and repay the funds with a percentage of your daily sales. This makes it better suited for retailers, restaurants and other businesses that regularly process credit card payments.

Rather than relying on credit, Square Capital mainly looks at your sales history. And with loans starting at $300, it’s an option for struggling businesses that need to cover an emergency expense or just want to expand.

But cash advances are traditionally more expensive than other types of business financing — and Square isn't transparent about the costs. Make sure you understand how it compares to other products that your business is eligible for before you sign up.

Best for: Existing Square business owners already invited to apply.

Pros

  • No credit check or personal guarantee required
  • Straightforward repayment process
  • Quick access to funds
  • No prepayment fee

Cons

  • Invitation-only application
  • Minimum repayments due every 60 days
  • Not transparent about costs

In this guide

  • Our verdict
  • Details
    • Product details
  • Your reviews
  • Ask a question

Details

Product details

Min. Amount $300
Max. Amount $250,000
Loan term Up to 18 months
APR Varies
Requirements Business uses Square to process payments, invitation to apply.

Fast short-term business loans for current Square users

Current Square users can borrow between $300 and $250,000 with a standard term of 18 months.

Square loans are meant for short-term expenses your business may face. The loan amount, fee and daily repayment percentage are based on the sales your business processes using Square.

Businesses that process well over $10,000 a year in Square sales, process every day and have a healthy mix of old and new customers are more likely to get a loan similar to what it advertises online.

One flat fee — but daily payments required

Square Capital loans come with a fixed fee instead of interest, which you repay plus the loan balance with a percentage of your daily sales on Square. It doesn’t disclose the range of fees it charges.

The examples Square highlights on its website don’t state the approximate APR or the loan term. However, users are given the loan amount, fee and total repayment. Using Square’s examples, the fee is equivalent to about 14% of the advance. But your fee could vary widely.

With the default 18-month term Square offers, this is equivalent to an APR of about 14.9% — high for a business loan but still competitive for a cash advance.(1)

How Square compares to other lenders

Square loans have a limited reach. If you aren’t a Square user — or haven’t been offered a loan through its platform — another short-term lender like OnDeck or American Express business line of credit may be a better choice.

To browse lenders, select your annual revenue, time in business and your personal credit score range. Make sure to only apply with lenders that have requirements your business meets or your application will be rejected.

1 - 6 of 6
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
Starting at 3%
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $50,000 in annual revenue
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Lendzi
Finder Score: 4.7 / 5: ★★★★★
Lendzi
$5,000
$2,000,000
Starting from 3.9%
525+ credit score, one year in business, at least $50,000 annual revenue
Compare lending options and get funded fast.
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
Nav business loans
Finder Score: 4.8 / 5: ★★★★★
Nav business loans
$500
$5,000,000
Varies by lender
550+ credit score
Get connected with personalized matches from over 100 lending options. Plus, get the best rates with the help of dedicated funding managers.
BusinessLoans.com
Finder Score: 4.4 / 5: ★★★★★
BusinessLoans.com
$5,000
$3,000,000
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
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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Square Capital Funding reviews are a mixed bag

BBB accredited Yes
BBB rating A+
BBB customer reviews 1.06 out of 5 stars, based on 580 customer reviews
BBB customer complaints 3,493 customer complaints
Trustpilot Score 3.7 out of 5 stars, based on 1,331 customer reviews
Customer reviews verified as of 18 December 2023

Complaints on the Better Business Bureau (BBB) are few, and only one report states difficulty with Square Capital’s loan process and nonexistent customer support. While one review and four customer complaints aren’t sufficient for a fair rating, Trustpilot feedback gives a clearer reading on Square.

Negative Trustpilot reviews report having to jump through hoops in the loan process, even after receiving multiple loan offers. Many complaints also reflect poor customer support. But positive reviews say Square loans were convenient, easy to repay and offered great client support.

No set eligibility requirements

You’re only eligible to apply if you already use Square’s POS system and see an offer in your Square Dashboard. Otherwise, eligibility is unclear. But if your business meets the following criteria, you may be more likely to qualify:

  • At least one sale using Square’s POS system per week
  • At least $10,000 in annual sales through Square
  • Have a mix of new and returning customers

How the application works

Square Capital generally requires less information than your typical business loan. You must provide your business’s tax identification number or your Social Security number if you’re a sole proprietor. You may also be asked for tax returns, a utility bill to verify your company’s address and a government-issued ID for all business owners.

Online applications are only available to you if Square sends you an invitation. Log on to your Square account, and visit the Loans tab of your Square Dashboard to view any offers.

If you see a notification to apply for a Square Capital loan, hit the link. From here, select the loan amount that’s right for your business. Fees automatically adjust with the amount. Then, accept the offer and follow the instructions to fill out an application and submit any documents.

Filling out the application typically only takes a few minutes. If your business is approved, Square Capital sends you loan documents to review and sign.

Square Capital loans are automatically repaid

Square Capital charges a percentage of your daily sales through its point-of-sales system. This means everything is automatic — and your daily payments reflect your business’s revenue.

But regardless of sales, you must repay 12.6% — or 1/18 — of your initial loan balance every 60 days. The loan plus the fee is due in full after 18 months.

If your business can’t make the minimum payment based on Square sales alone, Square automatically deducts the remaining amount from your bank account.

Watch for new offers while you repay the loan. Square Capital could extend a new loan offer to you once you’re close to repaying your initial loan. If you need access to more funding, you may have the option to take out another advance.

The Square POS system sets it apart

To get access to Square loans, you’ll need to be a regular user of the Square POS system. You can also take advantage of Square Cash and Square Payroll in addition to its loans.

  • Square POS is software that combines payment processing, digital receipts and inventory management to allow for smooth merchant-to-customer interactions. Square’s point-of-sale system accepts credit cards, cash, checks, gift cards and mobile payments.
  • Square Cash, known as CashApp, is a person-to-person money transfer service that operates through the Square Cash app or by email. Sending and receiving money is free for personal use, while businesses pay 2.75% to receive payments.
  • Square Payroll is a small business tool that streamlines the employee payroll process with digital time cards, online employee accounts, automatic direct deposit and tax filing services.

Square Capital is a legitimate lender

Square Capital has funded over $9 billion to more than 460,000 small businesses since its inception.

It takes basic steps to protect your information, like password-protecting your account. All loans are issued by Square Financial Services, Inc., a Utah-Chartered Industrial Bank, Member FDIC.

If you aren’t eligible for Square, read our guide to business loans to find more options.

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Avatar

Jarvis

October 13, 2019

When can I get another Square Capital Loan? I have 1600 left on this loan from 5000.


Avatar

Jhez Finder

October 13, 2019

Hi Jarvis,


Thank you for your comment.


According to Square Capital, they can’t predict when your business will be eligible for another loan offer.


Square Capital will automatically reevaluate your business’s offer eligibility, but there is no magic number for when another offer will be available. Please note that each business is different and all accounts/locations are reviewed independently. Each loan offer is specific to the business and account evaluated for the offer. You may contact Square Capital directly for more details.


Regards,

Jhezelyn


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Chris

May 30, 2019

I have a loan now and I’m at 91% complete with payment. When or will I get an offer for a new loan?


Avatar

Jhez Finder

May 30, 2019

Hello Chris,


Thank you for your comment.


You might be eligible for another loan once you’ve completed your first offer. If you are eligible for additional Square Capital, just follow the same steps to accept and pay back your Capital.


Regards,

Jhezelyn


Avatar

Allan

April 01, 2019

I recieved a loan offer from the app. BUT, ive been reading alot of peoples comments and revjews and most of them say it takes out a percentage every transaction. But on my loan offer it says i will pay it back in one month, the amount being paid in full. Why is that? Or is there an option to where i can pay it in each transaction little by little? Is this the same loan as everyone else? Thanks in advance.


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johnbasanes Finder

April 01, 2019

Hi Allan,


Thank you for reaching out to Finder.


You may have received a different loan offer compared to the one where you could pay it in each transaction. You may however contact Square Capital Business loans directly to look into qualifying for that other offer. Hope this helps!


Cheers,

Reggie


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