I have a square loan for $1015 every 2 months. I only made $598. What happens to the rest ?

[CHEFALSSOULFOOD]

I have a  square loan for a minimum of $1015 every 2 months. I only made $598 for the 2 months, but my balance says it's paid. Where did the remaining balance come from if it's not in my account ?

[TheRealChipA]

Hi there @CHEFALSSOULFOOD. Per the loan agreement you signed, you authorized Square to take the balance out of your linked bank account.  

[Adalynn]

Hey @CHEFALSSOULFOOD !

Thank you for reaching out!

One of the benefits of a Square Loan is flexible repayments – paying a fixed percentage of daily card sales allows you to pay more when your business is busy and less if things slow down.

A minimum of 1/18th of the initial loan balance is required to be repaid in each sixty-day period following origination of the loan. If a minimum payment becomes past due, the amount owed may be debited from your bank account on file.

Hope that helps, please feel free to reach out to us directly if you have any other questions!

[Premierhms]

My new loan offer has nothing like that it only has a 60-day repayment period not 18 months. It also says in the faq link at the bottom of the offer that you guys only do loans from $100 to $10,000 where on the main loan faq page says 100 to 350k. So which.is right? Is.this the way loans will be handled going forward

 

 

[TheRealChipA]

As a long-time (10+ year) Square seller, and occasional loan user, I'll be watching for this answer keenly.  From what I see in your screen shots, there seems to be a new type of Square Loan being rolled out -- one in addition to the loans we've become accustomed to.  This looks like a shorter-term loan offer, or even an offer for newer sellers.  But, of course, I'm only guessing and will look forward to @Adalynn's explanation.