Square Loans vs MFE
Square Loans and Merchant Fund Express compared on eligibility, repayment and products, checked October 2026.
| Square Loans | Merchant Fund Express | |
|---|---|---|
| How it works | Offers only to Square sellers | Marketplace: one application matched with multiple funders |
| Minimum credit | No published score; based on Square sales history | 500 minimum (better credit, better offers) |
| Time in business | Based on time using Square | Varies by funder and product |
| Revenue | About $10,000 annual Square sales (reported) | Varies by product |
| Amounts | Offers $100 to $500K (reported) | $25,000 to $5,000,000 (product ranges) |
| Speed | Not published | Same-day decision; funding typically next business day after signing |
| Products | Loans repaid by a fixed percentage of daily card sales | Merchant cash advance, business line of credit, second position funding, buyouts on balances of $100,000 or less |
| States | Not published | All 50 states |
Sources: Square Loans Square Loans, NerdWallet review; checked October 2026. Square Loans is a trademark of its owner; Merchant Fund Express is not affiliated.
Square Loans are offered only to Square sellers and based on Square sales. Merchant Fund Express accepts direct applications from businesses regardless of payment processor and matches them with multiple funders.
Repayment: Square Loans are repaid by a fixed percentage of daily card sales. Merchant Fund Express offers vary by funder and product, including daily or weekly payments on advances and draw-based repayment on lines.
Underwriting: Square looks mostly at Square volume. Merchant Fund Express funders review total bank deposits and credit from 500 upward, so revenue outside Square counts.
Products: Square offers one loan type. Merchant Fund Express offers MCAs, lines of credit, second position funding and buyouts on balances of $100,000 or less.
Speed: Square did not publish speed on the page we checked; Merchant Fund Express publishes same-day decisions with funding typically next business day after signing.
Owners who already have a Square loan and want more capital can ask about second position funding.
Illustrative scenario: a salon processing $30,000 a month through Square with a Square offer of $20,000 may simply accept it. The same salon needing $45,000 to open a second location, or already carrying a Square loan, would compare a marketplace offer based on total deposits or second position funding.
Payment behavior: Square’s percentage of daily card sales automatically falls on slow days. Many advances use fixed daily or weekly debits instead. If your sales swing widely, ask funders whether a percentage-based or adjustable schedule is available.
Cost method: convert Square’s fee and any marketplace offer into total dollars repaid for the same amount.
Sellers with seasonal swings may value Square’s flexible percentage.
If you have a Square offer and it covers your need, its simplicity is a real advantage. If your Square volume understates your business, or you need a buyout or a second position, compare a marketplace offer on total cost and payment structure.
Good fit:
Compare first if:
Request a written Square Loans quote and a Merchant Fund Express application, then line up net cash, total payback and payment frequency. Credit from 500, same-day decisions, funding typically the next business day.
No, they are separate companies.
No; it reviews total bank deposits.
A fixed percentage of daily card sales.
Ask about second position funding through Merchant Fund Express.
Merchant Fund Express, for balances of $100,000 or less.
No; funders review total bank deposits.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
