@Mrabara1970 I’ll add one more thing. After you have paid off your loan, you can figure out what the effective APR was by using this formula:
LoanFees / LoanAmount / DaysNeededToPayOffLoan * 365
At the beginning of the loan, if you assume that you won’t pay it off for 18 months (the maximum allowed), you can use this formula to calculate the expected APR for the life of the loan:
LoanFees / LoanAmount / 18 * 12
Obviously, this is not an apples-to-apples comparison since Square’s Loan fees are not the same as interest. Therefore, the longer it takes you to pay off the loan the less the APR. If you pay it off quickly, your effective APR ends up being higher since the loan fee is constant no matter how long you need to pay off the loan.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
Was my post helpful? Take a moment to mark it as a solution. Marked solutions help other sellers find possible resolutions to similar problems. Also, if you find your solution elsewhere (say, through Support), it is helpful to come back to your post and tell us about it, then mark that as a Solution. Solutions are what this Community is all about!
