Wanting a bit more clarification about Flex Loans versus Short Term Loans

powerofliberty — Fri, 11 Sep 2026 16:40:20 GMT

Hi. I have used Square for my business for the better part of 7 years now, and this year is the first time I have been offered a 120-day, short term loan instead of the typical Flex Loan that I have had done every year since I started using Square.

I paid my previous loan off early with a $1,000 final payment. While Square evaluates for various factors, I cannot help to wonder if this Short Term Loan offer is based upon the fact that I paid it off early (roughly would equate to being 2 months early). I know the Short Term loans are not exactly anything new, but this is just very strange and admittedly distressing. I do not want to have loan payback rates, processing fees, and instant transfer fees eating up more than 10% of my cash flow.

My transaction volume has not drastically changed, and I am only down 5% YoY and I have over $120,000 in processed payments this year.

Just trying to get a better understanding of the loan evaluation process here because the payback rates for short term loans are astronomical compared to what I normally see on a Flex Loan, even if the interest fees are coming in at $150 to $250 cheaper.

Can someone kindly provide me some insight?

thread Wanting a bit more clarification about Flex Loans versus Short Term Loans in Banking With Square

Wanting a bit more clarification about Flex Loans versus Short Term Loans