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Square Capital business loans review

Invitation-only funding based on your Square sales — but beware of daily repayments.

  • Best for businesses that use Square to process payments.
  • Pick something else if you need a large amount of funds.
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Min. Amount$500
Max. Amount$250,000
Loan TermUp to 18 months
RequirementsBusiness uses Square to process payments, invitation to apply.

How much will this loan cost me?

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.

But it shows an example loan on its website with a fee equivalent to 13.5% of the advance. In this example, the business repays the loan with 16% of its daily sales through Square. This is equivalent to an APR of just under 17.4% — high for a business loan, but competitive for a cash advance.

Businesses can borrow between $500 and $250,000 and you must repay the loan in full over 18 months.

How it works

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.

What do I need to qualify?

This loan is invitation-only — you can only apply if you see an offer on your Square Dashboard. You’re more likely to qualify if you meet the following criteria.

  • At least one sale using Square’s point of sale system per week
  • At least in annual sales on Square
  • Have a mix of new and returning customers

What information do I need to apply?

Square Capital generally requires less information than your typical business loan. You need to provide your business’s tax identification number — or Social Security number if you’re a sole proprietor. And you need to give contact information and a state-issued ID for all business owners.

What industries does Square Capital work with?

Square Capital doesn’t explicitly restrict any industries. But you need to make a significant amount of revenue using Square’s point of sale system. This makes it better suited for retailers, restaurants and other businesses that regularly process credit card payments.

What other services does Square provide?

  • Square Point of Sale. Square’s point-of-sale software 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. 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. 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.

Compare other Square products

Pros and cons

Square Capital offers a simple way to get an advance on funds for businesses that might not qualify elsewhere. If it’s not right for your business, consider other providers like Square Capital.


  • Loans as low as at $500
  • No personal guarantee
  • Funding as soon as the next business day


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

See other business loan options

Select your annual revenue, time in business and your personal credit score range to compare other options your business might be eligible for.

Name Product Filter Values Loan amount APR Requirements

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

Is Square Capital legit?

Yes, Square Capital is a legitimate lender. You can 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.

However, there are two red flags. It’s not transparent about costs. And the BBB has issued a warning against its parent company, Square, over its failure to respond to customer complaints.

Square Capital reviews and complaints

BBB accredited No
BBB rating F
BBB customer reviews 1 out of 5 stars, based on 2 customer reviews
BBB customer complaints 3 customer complaints
Trustpilot Score 4.8 out of 5 stars, based on 1,179 customer reviews
Customer reviews verified as of 12 October 2020

Square Capital gets mostly positive customer reviews, but reviews of its parent company are nearly all negative. Customers praise how fast and seamless the Square Capital application and repayment process is. But many have had issues with the quality of Square’s customer service. A few also complain about the inconsistency of Square Capital’s loan offers.

How do I apply?

You can only apply online if you’ve received an invitation from Square. Here’s how to get started.

  1. Log on to your Square account and visit your Square Dashboard.
  2. If you see a notification to apply for a Square Capital loan, click on the link.
  3. 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.

What happens after I apply?

Once approved, Square Capital will send you loan documents to review and sign. You should receive your funds as soon as the next business day.

How repayments work

Square Capital charges a percentage of your daily sales through its point of sales system. But regardless of sales, you must repay at least 12.5% of your 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, it’ll 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.

Read our guide to business loans to find out how Square compares to other providers.

Frequently asked questions about Square Capital

Review by

Shannon Terrell is a senior writer for Finder who has written over 400 personal finance guides. With a focus on investments and personal finance, she breaks down jargon-laden topics to help others make informed financial decisions. She studied communications and English literature at the University of Toronto.

Expert review

Square Capital is an invitation-only advance on the sales that retailers make through Square’s point of sales 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.

Rather than relying on credit, Square Capital mainly looks at your sales history. And with loans as low as $500, 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 — APRs can sometimes reach 300%. 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.

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    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!


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