Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Square Capital business loans review

Customized loan offers based on your Square sales.

Bottom line: Square Capital only works with businesses that use its point-of-sale system. And even then, it’s unclear exactly what requirements your business will need to meet to qualify. So while Square loans are convenient, watch out for an opaque system and high costs. Read the full review or get our 30-second take.

No reviews yet. Write a review


Min. Amount


Max. Amount




Min. Amount$300
Max. Amount$250,000
Loan termUp to 18 months
RequirementsBusiness uses Square to process payments, invitation to apply.


  • A percentage of your daily sales automatically goes toward your repayment
  • No collateral required for loan amounts less than $100,000
  • Receive funds as soon as the next day


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

Our take on square capital

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 can be an easy 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.

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 that your business may face. The loan amount, fee and daily repayment percentage are largely 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 14.5% 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 18.5% — high for a business loan, but still competitive for a cash advance.

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 Kabbage may be a better choice for your business.

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 – 5 of 5
Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★
Lendio business loans
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.
SMB Compass
Finder Rating: 4.4 / 5: ★★★★★
SMB Compass
Starting at 5.99%
2 years in business, $25,000 monthly revenue, business bank account
Enjoy personalized solutions and a consultative approach to business lending.
Big Think Capital
Finder Rating: 4.7 / 5: ★★★★★
Big Think Capital
Starting from 6%
600+ credit score, 2 years in business, $100,000 annual revenue
Apply for a variety of small business loan options with one quick application and no impact to your credit score.
ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★
ROK Financial business loans
Starting at 6%
Eligibility criteria 1+ year in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
Apply for up to $5 million with a 15-second online application. Choose your best offer and get funded as soon as the same day.
Finder Rating: 4.4 / 5: ★★★★★
1 year in business, $100K annual revenue, business bank account, US based business
Get pre-approved for a business loan in minutes with no impact to your credit score.

Square Capital Funding reviews are a mixed bag

BBB accredited Yes
BBB rating A+
BBB customer reviews 1.07 out of 5 stars, based on 395 customer reviews
BBB customer complaints 4,926 customer complaints
Trustpilot Score 4.8 out of 5 stars, based on 1,257 customer reviews
Customer reviews verified as of 24 August 2021

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 you see an offer on your Square Dashboard. Otherwise, eligibility is unclear. But if your business meets the following criteria, you may be 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. And you must give contact information and a state-issued ID for all business owners.

Online applications are only available to you if Square sent you an invitation. Log on to your Square account and visit your Square Dashboard to view any offers.

If you see a notification to apply for a Square Capital loan, hit the link. From here, review your 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 will send you loan documents to review and sign. You should receive your funds as soon as the next business day.

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 will automatically deduct 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 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 1.5% 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.

u003ca href=u0022 target=u0022u0022 rel=u0022u0022 data-no-link-check=u0022trueu0022u003eCompare other Square productsu003c/au003e

Square Capital is a legitimate lender

View its state licenses online and it takes basic steps to protect your information, like password-protecting your account. All loans are issued by Celtic Bank, which is a member of the FDIC an active SBA lender — meaning that it meets federal standards.

If you aren't eligible for Square, compare loans like Square and read our guide to business loans to find more options.

Ask an expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use and Privacy and Cookies Policy.


    Default Gravatar
    October 13, 2019

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

      Avatarfinder Customer Care
      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.


    Default Gravatar
    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?

      Avatarfinder Customer Care
      May 31, 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.


    Default Gravatar
    April 1, 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.

      Avatarfinder Customer Care
      April 2, 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!


Go to site