thread Re: Questions about fees on a second loan through Square Capital in Banking With Square

Questions about fees on a second loan through Square Capital

Rockman2011 — Sat, 20 Sep 2025 12:53:59 GMT

The title of this thread has been edited from the original: Is Square Capital double dipping on fees?

So if I take out a square capital loan at $3000 and they charge a flat fee of say $399 and then when my balance gets down to around $1000 they offer me a loan for $4000 and the fees are $499. I understand that they are going to use $1000 of the new loan to pay off the old loan but the new fee is based on the amount of $4000 so in essence, I am being charged a fee again to pay off the $1000 that I already paid a fee on in the first place. Is anyone following me here? Seams like I am getting double dipped on fees.

Re: Questions about fees on a second loan through Square Capital

GlassJudy — Mon, 08 Apr 2019 17:36:12 GMT

But you are actually borrowing the whole $4,000. If you were only borrowing $3,000, then you'd only owe $3,000. Since you're really borrowing the higher amount, the fees should be based on that amount. Think of it like this: if you borrowed $4,000 from someone else, you'd pay fees on that amount. You'd then use $1,000 to pay off Square. You'd still have $3,000 and owe Square nothing, and the other lender $4,000 - just like you will owe Square.

Re: Questions about fees on a second loan through Square Capital

Rockman2011 — Mon, 08 Apr 2019 17:36:39 GMT

Okay, makes more sense...lol Not sure why I was not able to wrap my head around it.

Thanks!!!!

Re: Questions about fees on a second loan through Square Capital

GlassJudy — Mon, 08 Apr 2019 17:36:24 GMT

At first I had a little bit of trouble figuring it out too.

I'm glad I could help out.