Square Money are fully transparent and provide uncomplicated short term loan solutions. So, here is a list of the most common questions we get asked to help you decide if you wish to take out a loan with Square Money.
First of all you need to be a UK resident and at least 18 years of age. You must also have been in full-time employment for at least 90 days, receive a regular salary or pay cheque paid into the same bank account as a valid debit card entered in your application.
You can borrow any amount between £200 and £750. We offer a maximum £300 loan to new borrowers.
We look at your financial status as it stands now and consider your ability to repay your loan on the date you set and agree too.
We collect the Loan repayment by a simple debit card transaction on the repayment date you set.
There is no fee for taking out a Square Money loan and we do not charge you for making faster payments to your account. You only pay interest.
Financial regulations state that we have to show annual cost – or APR. In truth, we actually charge a simple interest rate of 1%. To better understand our charges, here is an example. Say you take a loan of £200 for 18 days, it would only cost you £2 per day. That's a final payment of £236.
If you default on the loan repayment a default fee of £30 will be added to the outstanding amount.
We take lending responsibly and ask that our customers are responsible borrowers and make their payment on the day they agreed. However we appreciate that circumstances change and that our customers sometimes require loan extensions.
However, this is at the absolute discretion of Square Money and only if the customer repays the interest charges for the original Loan period.
We do not charge you for faster payments to your account so all our customers usually get their money within 2 hours but this can be as fast as 10-15 minutes.
To ensure your application process with Square Money is smooth we recommend you pull together the following before you start your application.
The date you make repayment is entirely up to you within our 31 day loan period.
This is also agreed with you in the pre-contract information and Fixed Sum Loan Agreement, which you will receive during the application process.
In line with the terms of the agreement, repayment of the Loan will be collected from your debit card, entered by you in the Secure payment page as part of your application.
As a responsible borrower, it is your responsibility to ensure that there are sufficient funds in your account to cover the collection on the repayment date.
Financial regulations state that we have to show annual cost – or APR. In truth, we actually charge a simple interest rate of 1%. To better understand our charges, here is an example. Say you take a loan of £200 for 18 days, it would only cost you £2 per day.
APR stands for Annual Percentage Rate. APR is the cost of credit expressed as an annual percentage. To determine the monthly periodic rate, divide the APR by 12 months. To determine a daily periodic rate, divide the APR by 365 days
APR can be a confusing way to explain the cost of a 30-day loan, especially since APR is meant to describe the cost of a loan borrowed over an entire year. Remember, UK law requires us to list the APR simply for the fact that it’s a financial product. So when you see our APR and cringe at the number of digits, remember that though the APR listed is high, the actual cost of a cash advance isn’t so high, and may well be cheaper than the alternatives, like overdrawing your current account without authorisation.
“Over a short term APRs are often irrelevant, after all if you borrowed £20 and paid someone back and bought them a pint (£3) the next week, that sounds pretty reasonable. Yet if you were to take it as a loan, and compound it, it’d signify a 143,000% APR”
Martin Lewis, Money Saving Expert
We are regulated by the Office of Fair Trading (OFT) and are a member of the British Cheque Clearing Association (BCCA), the UK’s leading trade association for the consumer credit industry.
Square Money is only for responsible borrowers. At all stages of the process we make it very clear that you need to be able to afford to pay us back on the agreed date. We also make it very visible, throughout the whole application, how much money you will owe at the end of the agreements.
Combine this transparency with the 8,000 pieces of data we use to process a decision - and the fact that our customers are all fully banked, have a regular income, own mobile phones, and generally have access to mainstream credit alternatives - and you can see that Square Money make very selective lending decisions for both first-time and returning applications.
There are many differences between Square Money and traditional payday lenders.
Our customers decide how much they want to borrow using the slider on our website. They can then decide when they want to repay – up to 31 days. This is not tied to a payday or an applicant’s salary. We charge no fees and are very transparent on the interest you pay. At all stages of the application process you can clearly see how much you are borrowing, when you agree to pay, what the interest charge is per day, and also the total amount to be paid back on the agreed date
We are responsible lenders. Our customers are responsible borrowers. So our aim is to only help those with a cash crisis, and not to get them further in to strife.
To aid this we do not continually extend (‘roll’) loans and have set a maximum of three extensions. The difference between an extension and a roll, is that you can ask for another 24 hours (or any term up to a month) with Square Money, rather than automatically rolling your balance for another full term. We also re-credit check anyone requesting an extension and never guarantee to approve them. We are also very strict on allowing extensions.
We approve less than 10% of loans for extensions and only about 1% are extended three times, but sometimes people do need a little extra time. Customers must always settle any outstanding interest first, so their balances cannot spiral.
A responsible borrower is someone who knows they are in financial difficulties and needs help but know they can also make their payment on the date that they choose.
We don’t want people to get in to further financial problems so we work hard to make sure we only lend to those who can repay.
If things do go wrong, we always try to contact the customer and help them with a repayment plan.
If we can’t contact someone or agree a sensible repayment plan, our policy is to freeze all balances after a maximum of 60 days - ensuring the balance can never spiral out of control.
Over 8,000 pieces of data is used to make fast decisions with Square Money. We also reject almost two thirds of first loan applications. That means we don’t lend to everyone and most people repay us on time or early.
We also incorporate a number of anti-money laundering and anti-fraud measures into the verification processes, to minimise any criminal or fraudulent use of our system.
Square Money offer finance for a specific amount of money over a specific period of time to help people get out of financial troubles. We are not here to provide people with a continuing line of credit or make it easy for them to spend and potentially get in to more trouble.
If you do find yourself in difficulties repaying your short term loan with Square Money, then please contact us and we will help in any way we can. However, if you do need debt advice then try one of the following:
If you live in England, Wales or Scotland phone 0808 808 4000 or visit www.nationaldebtline.co.uk
If you live in Northern Ireland phone 0800 917 4607 or visit
Money Advice Service
Phone 0300 500 5000 or visit www.moneyadviceservice.org.uk
Money Advice Scotland
To find contact details for debt advice in your local council area, phone 0141 572 0237 or visit www.moneyadvicescotland.org.uk
Member centres offer debt advice to the public, some providing specialist advice for minority ethnic and refugee communities and people with disabilities. For further information phone 0207 469 5700.
Other useful organisations
Community Legal Advice
If you qualify for legal aid phone 0845 345 4 345 for free advice or visit www.communitylegaladvice.org.uk
Consumer Credit Counselling Service
For debt advice throughout the UK phone 0800 138 1111 or visit