Stripe Capital vs Square Loans (2026): Fees, APR and Terms Compared
Short answer: Compare cost and size first. Stripe Capital: One flat fee, 10% in samples; about 13% to 38% APR (our estimate); No published maximum; Stripe samples $15,000 to $25,000. Square Loans: One flat fee; 10% to 16% (third-party); $100 to $500,000. The table and profiles below show who each one suits. Figures come from our full reviews of Stripe Capital and Square Loans.
Stripe Capital vs Square Loans at a glance
| Stripe Capital | Square Loans | |
|---|---|---|
| Lender type | Platform lender: bank loans (Celtic Bank, Lead Bank) or cash advances (YouLend) | Bank-issued flat-fee loan |
| Products | Loan or merchant cash advance; Stripe chooses | Invite-only business loans for Square sellers |
| Amounts | No published maximum; Stripe samples $15,000 to $25,000 | $100 to $500,000 |
| Cost | One flat fee, 10% in samples; about 13% to 38% APR (our estimate) | One flat fee; 10% to 16% (third-party) |
| Term | Loans: maximum per agreement (third parties report 18 months) | No fixed term; 18-month maximum (third-party) |
| Funding speed | 1 to 2 business days after approval | Next business day; instant to Square Checking |
| Founded | Stripe 2010; Capital launched in the U.S. in 2019 | 2009 (Square); lender opened 2021 |
| HQ | South San Francisco, California, and Dublin, Ireland | Oakland, CA (Block); lender in Salt Lake City, UT |
| Status | Active (re-checked 2026-10-26) | Active, verified 2026-10-26 |
Choose Stripe Capital if
Best for: U.S. businesses that have run payments through Stripe for at least three months and want an offer they can accept in minutes, with no hit to personal credit and repayments that rise and fall with Stripe sales.
Choose Square Loans if
Best for: Businesses that take most of their card payments through Square, process at least $10,000 a year, and want a flat-fee loan whose daily payments shrink automatically on slow days.
Who should skip each
- Stripe Capital is not for: Businesses whose revenue mostly flows through another processor, anyone who needs to request a specific amount or loan type, or borrowers who want a published price and maximum. A bank line or SBA loan will usually cost less if you can wait and qualify.
- Square Loans is not for: Sellers who don't run sales through Square, anyone who wants to apply on their own schedule, or businesses chasing the lowest cost. Paid off in about 6 to 8 months, a typical fee works out to roughly 35% to 49% APR; a bank line or SBA loan costs far less if you qualify.
Lender List verdict
Stripe Capital: Stripe Capital is one of the simplest ways for a Stripe merchant to raise working capital, and it is highly flexible in slow months because payments are a share of each day's Stripe sales. The catch is speed of payback: Stripe's 10% sample fee repaid in about six months works out to roughly 38% APR (loans still carry a 30- or 60-day minimum). Square Loans: Square Loans is the easiest money a Square seller can get: no application to start, no hard credit pull, no late fees, and payments that shrink in slow months. You pay for that convenience with a flat fee that third-party reviewers put at 10% to 16%, which gets expensive when you repay quickly.
Frequently asked questions
Which is cheaper, Stripe Capital or Square Loans? Stripe Capital: One flat fee, 10% in samples; about 13% to 38% APR (our estimate). Square Loans: One flat fee; 10% to 16% (third-party). Your actual cost depends on the offer and how fast you repay, so convert any quote with our factor rate to APR calculator. Which funds faster, Stripe Capital or Square Loans? Stripe Capital: 1 to 2 business days after approval. Square Loans: Next business day; instant to Square Checking. How much can I get from Stripe Capital or Square Loans? Stripe Capital: No published maximum; Stripe samples $15,000 to $25,000. Square Loans: $100 to $500,000. Read the full reviews: Stripe Capital review · Square Loans review. Figures come from those reviews, which cite the lenders' own pages and third-party sources; see our methodology. Updated 2026-10-27. Pricing varies by offer; confirm with the lender before applying.