I’m entering a slower season for my business, so I was excited to see we’ve been approved for our 2nd Square Capital Loan. When I read the terms, I became a little confused. It seems square will be charging me fees on the remaining balance of my previous loan on top of the new loan. Is it worth it?

Original Loan: 9950 plus $1378 loan fee.
New Offer : 10,700 plus 1557 loan fee (minus 2271 to pay off current loan)

so essentially, we will only receive 8429, but will be paying higher fees since they automatically remit the payment for the original loan from this new offer.

  • NoRatePayments@alien.topBEnglish
    1·
    1 year ago

    I really don’t like for you that you are entering your 2nd loan before finishing your first just to get through a slow season. I saw many people on their 2nd or 3rd merchant cash advances over the years and it becomes very tough to get out.

    Capital loans should be for hiring more people, buying more equipment/inventory or expansion, not just to get through the slow season. I think you need to look at your business model and see what you can do to generate more cash flow during slow times.

    • OutrageousSolution61@alien.topOPBEnglish
      1·
      1 year ago

      I’m also on pace to pay off this loan in two months and it was just taken out in May. So again, I only mentioned the balance of the first loan because it appears they are charging me fees twice.

      • NoRatePayments@alien.topBEnglish
        1·
        1 year ago

        I am glad that you are paying it off in 2 months. I’m not telling you what to use the money for. I’m expressing that I am concerned that you are on your 2nd loan before you have paid off the first. I’ve seen a lot of horror stories that start off the same way.