PayPal Working Capital and Square Loans are both fixed-fee loans repaid from your sales on the platform, so the right one usually depends on where your customers pay you. PayPal lends $1,000 to $250,000 ($400,000 for repeat borrowers) based on your PayPal sales, with no personal credit check and a minimum payment every 90 days. Square offers $100 to $500,000 by invitation to Square sellers, with no collateral on loans of $100,000 or less. Choose PayPal if most of your revenue runs through PayPal; choose Square if you take card payments through Square.
For more detail, read our PayPal Working Capital review and Square Loans review, or see every head-to-head in the lender reviews hub. Figures below come from each company’s own site unless marked.
PayPal Working Capital vs Square Loans at a glance
Figures checked on September 21, 2026. Pricing is shown as each company quotes it.
| PayPal Working Capital | Square Loans | |
|---|---|---|
| Loan amount | $1,000 to $250,000; up to $400,000 for repeat borrowers | $100 to $500,000 |
| Pricing as quoted | One fixed fee; no periodic interest | One flat loan fee; no interest |
| Repayment | A percentage of each PayPal sale | A fixed percentage of daily card sales |
| Minimum payments | At least 5% or 10% of the total (loan plus fee) every 90 days | Set on your offer; NerdWallet (third-party) reports one-eighteenth of the loan every 60 days |
| Maximum term | Not stated on PayPal’s page | Not stated by Square; NerdWallet (third-party) reports 18 months |
| Eligibility | PayPal Business or Premier account for 90+ days; $15,000+ (Business) or $20,000+ (Premier) in annual PayPal sales; no open PayPal Working Capital loan | By invitation; more likely with $10,000+ processed in a year and Square used 20+ days in the last year |
| Credit check | No personal credit check | Applying doesn’t affect your credit score; each application is subject to credit review |
| Collateral and guarantee | Not stated on PayPal’s page | None at $100,000 or less; may file a UCC lien above $100,000; personal guarantee above $250,000 |
| Early payoff and late fees | No early repayment fee; no late fees | Prepaying doesn’t change the cost; no late fees |
| Speed | Funds in your PayPal business account within minutes, if approved | Next business day, or instantly with Square Checking (help center says 1 to 3 business days) |
| Lender | WebBank | Square Financial Services, Inc., a Utah-chartered industrial bank owned by Block, Inc. |
Who makes the loans
PayPal arranges its loan, but “the lender for PayPal Working Capital is WebBank” (PayPal Working Capital). Square’s loans are made by its own bank: “All Square loans are issued by Square Financial Services, Inc., a Utah-Chartered Industrial Bank” (Square Support), a wholly owned subsidiary of Block, Inc.
The way you get an offer differs. You can apply for PayPal Working Capital once you meet its account and sales minimums. Square Loans “are offered by invitation,” and Square reviews accounts daily for offers (Square eligibility FAQs).
What each costs
Both charge a single fixed fee instead of interest. You agree to the dollar cost up front, and it doesn’t grow with time. That’s different from an APR (annual percentage rate), which expresses cost per year. With a fixed fee, repaying faster means a higher APR even though the dollar cost stays the same.
PayPal says to “pay just one competitively priced fixed fee,” with “no periodic interest” and no late fees, and you can pay the loan in full “with no early repayment fee.” Square offers “no interest, just one flat fee,” defines the total cost as “the difference between the total owed amount and the initial loan amount,” and says prepaying doesn’t change that cost (Square Loans).
Neither company publishes a fee range; your fee appears on your offer. Ask for the fee, total repayment and withholding percentage in writing before you accept.
Worked example: PayPal’s 90-day minimum
PayPal’s minimum is a share of the loan plus the fee. On a $50,000 loan, a 5% minimum means at least $2,500 plus 5% of your fee repaid in every 90-day period; a 10% minimum means $5,000 plus 10% of the fee. If your PayPal sales don’t cover that through the automatic deductions, you’d need to make up the difference with a manual payment. Square’s minimum payment and due date appear in the Loans tab of your Square Dashboard, so run the same check against your own offer.
Who qualifies
PayPal Working Capital
- A PayPal Business or Premier account for 90 days or more.
- At least $15,000 in annual PayPal sales with a Business account, or $20,000 with a Premier account.
- Any existing PayPal Working Capital loan paid off.
- No personal credit check; the decision is “based primarily on your PayPal account history.”
Square Loans
- An invitation from Square. Businesses that have processed $10,000 or more in a year and used Square at least 20 days in the last year “are more likely to be eligible.”
- Square also weighs payment frequency, customer mix, disputes, reserves and failed bank debits, and each application is subject to credit review.
- As of August 2026, businesses that sell CBD products or services aren’t eligible for new Square loans.
- One active loan per location at a time.
Choose PayPal Working Capital if…
- Most of your sales come through PayPal.
- You want to apply as soon as you meet the minimums rather than wait for an invitation.
- You’d rather skip a personal credit check.
- You want funds in your PayPal business account within minutes of approval.
Choose Square Loans if…
- You take card payments through Square and have an offer waiting.
- You need more than $250,000 on a first loan. Square goes up to $500,000.
- You need a very small amount; Square offers start at $100.
- You bank with Square Checking and want instant funding.
If you sell on Shopify as well, see Square Loans vs Shopify Capital. For options outside PayPal, see PayPal Working Capital alternatives.
Pitfalls to watch
- Minimums in slow periods. PayPal requires 5% or 10% of the total every 90 days. Square may raise the repayment rate and debit your Square balance or linked bank account if you miss a minimum.
- Early payoff doesn’t cut the fee. Both fees are fixed, so paying early saves time, not money.
- One loan at a time. PayPal requires any existing Working Capital loan to be paid off first; Square allows one active loan per location.
- Platform dependence. Repayment comes from sales on that platform. Moving your payment processing while a balance is open can leave you short of the minimums.
FAQ
Does PayPal Working Capital or Square check my credit?
PayPal says there’s no personal credit check. Square says applying doesn’t affect your credit score, but each application is subject to credit review.
Which lends more?
Square, at up to $500,000. PayPal lends up to $250,000, or $400,000 for repeat borrowers.
Who is the lender on each?
WebBank for PayPal Working Capital. Square Financial Services, Inc., Block’s Utah-chartered industrial bank, for Square Loans.
Can I repay early?
Yes, with both. PayPal charges no early repayment fee, and Square lets you make extra payments at any time at no additional cost. The fixed fee stays the same either way.
Next step
If you’d like to compare a platform loan with other working capital options, SMB Compass can help you compare offers from the lenders we work with. Start with our business loans page or read working capital loans vs revenue-based financing.
Sources
- PayPal: PayPal Working Capital
- Square: Square Loans
- Square Support: Get started with Square Loans
- Square Support: Eligibility FAQs
- Square Support: Repayment FAQs
- NerdWallet (third-party): Square Loans review (updated January 13, 2026)
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against each lender’s own website on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.