Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

Square Capital business loans review

Last updated:  

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 to borrow more than $250,000


Min. Amount


Max. Amount


Product NameSquare Capital business loans
Min. Amount$500
Max. Amount$250,000
Loan TermUp to 18 months
RequirementsBusiness uses Square to process payments, invitation to apply.

Expert review

Shannon Terrell

Review by

Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.

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.

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 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 $10,000 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 provide 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 ever 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 might be eligible for.

    Data indicated here is updated regularly
    Name Product Filter Values Loan amount APR Requirements
    First Down Funding business loans
    $4,000 – $300,000
    5.49% to 22.79%
    At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 580
    Alternative financing up to $300K with highly competitive rates.
    Lendio business loan marketplace
    $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 75 legit business lenders.
    $2,500 – $5,000,000
    7% to 30%
    $300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
    Get connected with short-term funding, SBA loans, lines of credit and more.
    Kickpay e-commerce loans
    $20,000 – $1,000,000
    Not applicable
    At least $250,000 in the past 12 months of revenue, e-commerce business, use a 3rd party fulfillment center for storing and shipping inventory, at least one US location.
    Get a loan for your e-commerce business based on your sales history.
    Credibly Business Loans
    $5,000 – $250,000
    6+ months in business, $180K annual business revenue, 500+ credit $15K+ in monthly deposits
    Funding to cover business expenses with daily or weekly repayments.
    $30,000 – $5,000,000
    4.75% to 7.00%
    650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
    Get funding for your small business with a government-backed loan and extended repayment terms.
    LendingClub small business loans
    $5,000 – $500,000
    9.77% to 35.98%
    12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    Monevo Business Loans
    $500 – $100,000
    3.99% to 35.99%
    Credit score of 500+, legal US resident and ages 18+.
    Use this connection service to get paired with a loan you can use for business.

    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 Inc., over its failure to respond to customer complaints.

    Does Square Capital get good customer reviews?

    BBB accredited No
    BBB rating A+
    BBB customer reviews 1 out of 5 stars, based on 391 customer reviews
    Trustpilot Score 4.9 out of 5 stars, based on 1,091 customer reviews
    Customer reviews verified as of 02 July 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.

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

    Frequently asked questions about Square Capital

    Image source: Shutterstock

    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.


    1. 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.


    2. 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.


    3. 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