Square Capital is a lending service that provides merchant cash advances to small businesses who already use the Square service to process credit card payments.
People typically think of Square as a credit card processing company; however, in this article we will be focusing on the company’s lending service.
We compiled reviews from our own website plus user reviews from around the web to determine what Square Capital customers think about the company. We also covered the fees associated with taking out a loan.
Square Capital Customer Reviews
Customer Service: Good
Summary of User Reviews
We scoured hundreds of reviews and found that Square Capital has generally positive ratings. Here’s what we found:
What Square Capital does well:
Users of Square Capital were happy with the lenient requirements and the quick processing of their loans. The majority of users said they immediately got the cash advance within 24 hours of their loan’s approval.
What Square Capital does not do well:
For years, users have always complained about Square’s lack of customer support, and its Square Capital service is no exception. Users of the service also complained of the high APR (30%).
Most Helpful Positive User Review
“I’ve been with a major bank for the entire 25 years my one-man business has been in operation. Last year I had a sudden downturn in work volume. I needed a small cash advance to work through the slowdown. Even with an excellent credit score and on-time payback of all previous loans the bank said “NO” (don’t get me started on the banks!). I looked into credit card and cash advances but the rates were ridiculous. Then I found out about Square Capital and it was perfect! No questions asked, no application process, and the funds were in my account in about 3 business days. The advance easily got me through the slowdown and it’s already about 85% paid off. Because it’s not a loan, my credit score was not affected in any way. I chose the lowest / slowest payback percentage (9%) and have barely noticed the difference in daily credit card sales revenue. The total amount you pay back to Square is a bit on the high side (somewhere around 13-20% of the advance based on the offers I received), but that is way less than any typical business cash advance and I love that the payments are ‘scaleable’ to my business credit card sales so a slow day or week doesn’t negatively affect me. From now on when temporary funds are needed I will use Square Capital if for nothing else than to not have to deal with the absolutely horrible big banks. I’m not affiliated with Square I’m just really happy with them and wanted to share my positive experience.”
Most Helpful Negative User Review
“If I had one complaint, it would be the inconsistent customer support. We’ve noted in our main review of Square that support services (or lack thereof), are a problem with the company at large, and Square Capital is no exception. Regardless, if you’re eligible for an advance from Square Capital, you’re probably already used to the level of support provided by the company.”
— Bianca Crouse, Merchant Maverick
Other Square Capital User Reviews From Around the Web
Here are a few other resources for finding helpful Square Capital customer reviews. We rated the review sites on a scale from poor to excellent based on how trustworthy and useful the reviews seemed.
*Average rating as of date article was written: Jan. 24 2017
How We Determined Quality of User Review Websites
- Top Ten Reviews starts off with a staff review, that evaluates the service on several aspects. At the bottom of the page, commenters can give their own reviews on the service, which affect the overall rating of the service.
- Merchant Maverick assigns one of its own staff members to review the service. The resulting review is in-depth and very informative. Although this is only one person’s viewpoint, users of the website are free to comment and join in the conversation.
- CardPaymentOptions is not a well-known review site, as they tend to focus on credit card payment products and services. However, their reviews are informative since they also do a combination of staff review and customer reviews.
Square Capital Fees & Other Details
|Borrowing amount||$1,000- $100,000|
|Fixed Fee||1.1 to 1.16% of loan amount|
|Annual Percentage Rate||30-35%|
|Payment Length||Max of 18 months|
Square Capital allows small businesses to borrow anywhere from $1,000 to $100,000, which is then deposited to their bank accounts. Many details about how the service works are not publicly accessible, and users say that Square Capital’s offers vary depending on the user. On average, most users said their APR was somewhere between 30-35%. The repayment process is different for each user, and they can have anywhere from an 8-15% repayment rate.
This means that 8-15% of your daily credit card sales via Square will go to repaying your debt. You need to pay a higher amount on days where you have better sales, but you also pay less when sales are not doing so great. You don’t have to pay them on days where you don’t have any sales via credit card.
Square Capital Fee Estimates
Below is an estimate of how much you’ll be able to borrow through Square Capital based on your daily credit card sales. Note that these are our own estimates based on the publicly available data, but Square hasn’t provided or confirmed these numbers:
to Pay Back