Shopify Capital vs Square Loans 2026

Both programs extend pre-approved offers based on processing history on their respective platforms — Shopify Capital uses Shopify store sales data; Square Loans uses Square payment volume and history. Eligibility is not based on a formal credit application; instead, merchants receive an offer when their platform data meets internal underwriting thresholds. There is no application form to fill out in the traditional sense — you accept or decline a pre-screened offer. Verify current eligibility criteria at shopify.com/capital and squareup.com/loans.

Both repay as an automatic percentage of daily sales. Shopify Capital takes a fixed holdback percentage of your Shopify store payouts until the total payback amount is collected. Square Loans similarly deducts a set percentage of your Square daily card sales. Both structures flex with revenue — lower sales mean lower daily deductions, extending the repayment period. The total payback amount (advance + fee) is fixed at funding regardless of how long repayment takes — the same advance-plus-fee mechanic used across revenue-based financing generally.

Shopify Capital is available to merchants who sell through Shopify, including those with Shopify POS for in-person sales. It underwrites from Shopify-processed revenue. Square Loans is available to merchants using Square for payment processing, which includes both in-person (Square POS) and online (Square Online) channels. If you sell across both Shopify and Square — or use other processors in addition — only the volume on the relevant platform feeds the underwriting for each product. A multi-channel merchant might qualify for offers from both if they process meaningful volume on each.

Shopify Capital offer amounts have ranged from as low as $200 to over $2 million for high-volume merchants per Shopify's published eligibility disclosures, driven by your store's Gross Merchandise Volume (GMV). Square Loans offers have typically ranged from $300 to $250,000 per Square's published disclosures, calibrated to your Square payment processing volume. Neither platform publishes a standard menu — your offer reflects your individual platform history. Confirm current offer ranges at shopify.com/capital and squareup.com/loans.

Both are designed for rapid automated funding — generally within 1–2 business days of accepting a pre-screened offer. Funds are deposited directly into your Shopify Payments payout account (Shopify Capital) or your linked bank account (Square Loans), depending on your payout setup. There is no multi-week underwriting review because the offer was already underwritten algorithmically before it was presented. Verify current deposit timelines at shopify.com/capital and squareup.com/loans.

Neither product has a fixed repayment term in the traditional sense — repayment continues until the total payback amount is collected as a percentage of daily sales, with no penalty for slower repayment during slow periods. However, Shopify's merchant agreement may include a maximum repayment period (typically up to 18 months) after which the remaining balance could become due — review your specific offer agreement. Square Loans similarly specifies a maximum loan term. If sales are extremely slow for an extended period, contact the provider before the maximum term to understand any end-of-term obligations. Because pricing is a fixed factor-rate fee rather than an amortizing interest rate, the total cost doesn't shift with how long repayment takes — run the numbers with the factor rate to APR calculator to compare the true cost against a term loan.