Square has become a trusted name among Canadian small businesses, offering everything from payment processing and online checkout to point-of-sale systems.
But beyond transactions, Square also provides fast, flexible financing designed specifically for its merchants — through the Square Loans program.
Here’s how Square loans work in Canada, who qualifies, and how you can apply directly from your dashboard in just a few clicks.
Does Square Offer Loans in Canada?
Yes. Square Loans are available to eligible Canadian businesses that process payments through the Square ecosystem. The company uses your sales history and account performance to determine eligibility — meaning there’s no lengthy paperwork, no traditional credit checks, and no waiting weeks for approval.
If you qualify, Square sends a loan offer directly to your dashboard. Once accepted, funds are deposited into your linked bank account — often as soon as the next business day.
Eligibility and Minimum Requirements
Square Loans aren’t available to everyone automatically. To be eligible in Canada, you’ll need to meet a few minimum requirements:
- Be a Canadian business actively using Square to process sales.
- Maintain a consistent volume of transactions over time.
- Have a verified Square account linked to a Canadian bank.
- Maintain low chargeback rates and a good account standing.
Unlike traditional banks, Square doesn’t require collateral or a high credit score — approval is based primarily on your Square payment history and revenue patterns.
How to Apply from Your Dashboard
If you’re eligible, applying for a Square loan takes only a few minutes:
- Sign in to your Square Dashboard.
- Go to the “Loans” section (available under “Balances” or “Capital”).
- Review your pre-approved offer — you’ll see the amount, total repayment, and fixed fee.
- Click “Apply Now” to accept the offer.
- Funds are deposited into your account, usually within one business day.
If you don’t yet have an offer, keep processing payments consistently. Square automatically reviews accounts and sends new offers as your business grows.
How Repayments Are Automatically Deducted
Repayment through Square is automatic and flexible. Instead of fixed monthly instalments, Square deducts a small percentage of your daily sales until your loan and fee are fully repaid.
For example:
If your repayment rate is 10% and you make C$1,000 in sales today, C$100 goes toward repayment. If your sales slow down, you pay less that day.
This sales-based repayment model makes Square Loans particularly attractive for seasonal or variable-income businesses.
Typical Loan Amounts for Canadian Merchants
Loan amounts depend on your business performance within Square.
Typical ranges include:
| Business Type | Average Loan Offer | Repayment Method |
|---|---|---|
| Small retailers | C$5,000 – C$20,000 | Daily % of sales |
| Restaurants & cafés | C$10,000 – C$50,000 | Daily % of sales |
| Online stores | C$15,000 – C$75,000 | Daily % of sales |
Square also offers repeat loans — once you’ve repaid around 70%–80% of your current loan, you may receive another pre-approved offer automatically.
Square Loan vs PayPal Working Capital
| Feature | Square Loan | PayPal Working Capital |
|---|---|---|
| Application | In-app (Square Dashboard) | In-app (PayPal account) |
| Credit Check | None | None |
| Funding Speed | 1 business day | 1–2 business days |
| Repayment | % of sales | % of sales |
| Loan Size | Up to C$250,000 | Up to C$150,000 |
| Partner Platforms | Square only | PayPal merchants only |
Verdict:
Both options are great for small businesses, but Square Loans tend to offer higher limits and faster access for merchants who process larger in-person or online sales through Square POS.
Benefits of Using Square Capital for Growth
Square Loans can help Canadian entrepreneurs:
- Access working capital quickly without traditional paperwork.
- Buy inventory or equipment to expand operations.
- Bridge cash-flow gaps during slow seasons.
- Consolidate expenses and invest in marketing.
- Build a funding history that unlocks larger loan offers over time.
Since repayments automatically align with sales, it’s one of the most stress-free financing options available to small and medium-sized businesses in Canada.
👉 Next article: How to Get Your Square Card in Canada