ROI Funder vs Square Loans

What Square says about its loans

Square says offers range from $100 to $500K based on business performance, cost one flat fee with no interest, and are repaid automatically from daily card sales; loans are issued by Square Financial Services, Inc.

From the Square Loans page (checked October 2026):

• Who can get one: Square Loans are offered by invitation. Square reviews processing activity and reaches out by email and in the Dashboard when you are eligible.
• Offer size: $100 to $500K, based on time using Square, processing volume and frequency, customer mix and other factors.
• Pricing: no ongoing interest. The total cost is the loan fee, the difference between the total owed and the amount borrowed, and it never changes.
• Repayment: a fixed percentage of daily card sales, plus minimum payments listed in your offer.
• Funding: next business day after approval, or instantly into Square Checking.
• Credit and collateral: applying does not affect your credit score. No collateral for $100,000 or less; above that, Square may take a security interest and file a UCC statement, and loans over $250,000 require a personal guarantee.

The flat fee and early payoff

Square says you can prepay at no extra cost, but the total owed does not change, so paying early saves time, not money.

This is the single most important detail for an owner who expects a cash windfall. With a flat-fee product, the fee is fixed on day one. Square's page states prepayments are allowed at any time and that the total amount owed does not change because of them. Square also says there are no late fees added to the total.

Illustrative example: you take $50,000 with a $6,500 fee and plan to pay it off in 4 months instead of 12 when a big contract pays. With a flat fee, you still pay $6,500, so the cost per month of use roughly triples. With an interest-bearing term loan or line of credit, paying early usually cuts the interest you owe. If you expect to pay early, a line of credit may be the better tool. Read our explainer on APR versus factor rates. Figures are illustrative.

Eligibility compared

Square decides eligibility from your Square processing history, and you cannot request an offer; ROI Funder accepts applications from businesses with 6+ months, $20,000+ in monthly revenue and 500+ FICO.

Square's FAQ says that if no offer shows in your Dashboard, you are not eligible at this time, and that accounts are reviewed daily.

Restaurants, salons and shops that take cash or other processors

Square only sees what runs through Square, so a business that also takes cash, checks, ACH invoices or another card processor may get an offer that understates its real revenue.

Illustrative example: a restaurant runs $35,000 a month in card sales through Square, takes $20,000 a month in catering paid by ACH and check, and keeps $5,000 a month in cash sales it deposits. Square sees $35,000. A bank statement shows about $60,000.

If a Square offer is too small for a kitchen upgrade or a second location, that gap is often the reason. Funders in our network work from your business bank statements, so every deposited dollar counts. See how we approach restaurant funding for typical uses and payback examples. Figures are illustrative.

Questions to ask before accepting any sales-share offer

Ask what the minimum payment is, what share of daily sales is taken, what happens on a slow week, and what the total cost is in dollars.

1. Total cost in dollars: the fee, written as a number, not a rate.
2. Holdback percentage: what share of each day's card sales is withheld, and how that compares with your margin.
3. Minimum payment: how much and how often, and where it is debited from if sales do not cover it. Square says it may debit your Square balance or linked bank account.
4. Early payoff: whether paying early saves money or only time.
5. Security and guarantee: whether a UCC filing or personal guarantee applies at your amount.
6. Payback math: what the money buys and how fast it pays for itself.

When Square Loans are the better fit, and when ROI Funder is

Square Loans fit Square sellers who have an offer that covers their need and expect to repay on schedule. ROI Funder fits businesses without an offer, needing more, or wanting early payoff savings or fixed payments.

Square may be better if: you process most of your sales through Square, an offer of the right size is waiting in your Dashboard, and you like a single flat fee with repayment that slows when sales slow. Smaller requests also suit Square, since its offers start at $100 and ours start at $5,000. Businesses with credit below 500 may also find Square's processing-based approach easier.

ROI Funder may be better if: you have no offer, the offer is too small, you use another processor or take a lot of cash and ACH, you need more than $500K, or you expect to pay early and want a product where that saves money. We match each file to the funders in our 100+ funder network that fit it, including working capital, term loans, lines of credit and revenue-based financing, and show true cost before you sign.

Applying takes a few minutes with no obligation.