Dont count on it. Same thing happened to me. I paid roughly 70% percent of my loan, and had a small balance remainjng. I figured paying it off early would increase my chances of getting a second loan, but nope. Didnt happen. Before clicking submit to pay off my loan, square had a disclaimer mentioning it could take up 2 weeks for them to apply the payment and once the payment is confirmed, i would be eligible for another. Nope, didnt happen again. 2 weeks came and gone. I may be switching to paypal also! 

Although paying a loan off early would signal trustworthiness, and I’m sure that helps to some extent, I could also imagine it might decrease chances of a new loan since Square loses out on transaction fees for that dollar amount. I’m sure their expected return off of providing the loan includes these fees, not just the original flat loan fee.

Who knows how much each may factor in though, if at all.

Hi @DaoDeJing! 

Just to clarify, there is no penalty for early repayment. If a Square merchant decided to prepay, it may take up to two weeks for them to be reevaluated for eligibility. If the merchant is eligible, they will be notified on their Square Dashboard.

I understand there is no direct penalty for prepaying. But are you saying that prepayment is not considered in any way when determining future loan eligibility?

Even if prepayment is not relevant, if the algorithm takes into consideration the dollar amount of transactions processed since the last loan was given, then clearly prepaying would decrease that metric.

@EricasalonOwner,@VanKalkerFarms,

It is very hard to plan, that's for certain. I just don't understand, I was looking over my sales info, within square, and my credit card sales alone, are up 83% this year to date, from last year. I have no chargebacks, I have a great mix of new and returning customers , I process regularly, 6 days a week. I use square marketing etc.

I am now paid off and just cannot figure out what they want, for us to be eligible. 

I don't want to jump ship, like quite a few others have. So, as they say, " just keep processing" 

Have you received a new offer yet? 

Nope. No new offer. Was told 2 weeks and its been well past 2 weeks since i paid my loan off. I dont think i will get one anytime soon, but if i do i will update here.