Are you still eligible for loans if you have a reserve on your account?

[Cauldron]

Recently we were hit with a rolling reserve of 20% - released 90 days after each transaction.

Does anyone have any experience with getting a loan offer while under reserve? We are currently at 72% paid, with all green markers, just wasn’t sure if the reserve status affects eligibility for loans.

[TheRealChipA]

Hi @Cauldron.  I’m not aware of any issues caused by having a rolling reserve on your account.  That doesn’t mean it doesn’t happen sometimes, but yours is the first time I’ve seen that question asked.  Having said that, in the current lending environment 72% loan completion is probably not enough for a new offer to be forthcoming.  For the past year or so, I’ve noticed that most sellers aren’t receiving new loan offers until much later — the 90%.  And many are waiting for weeks or months after their loans are paid off before receiving new offers.  That is just a function of the lending industry, which is being very conservative and cautious right now.

Square Loans has its own dedicated support folks, and they can be reached as shown in this document.

[Cauldron]

Just thought I’d add more info in case someone has this issue in the future. I have a new category on my account activity area that says “needs work” after posting this thread.

Reserves:

Your account currently has a reserve, which could be used to cover chargebacks. This is affecting your eligibility. Learn more →

[TheRealChipA]

Thanks for posting that!  Which means I stand corrected.  Still, I wonder why that just showed up all of a sudden? 😏

[Sammie_C]

Hi @Cauldron!

Thank for reaching out on the Seller Community and sharing your question!

We've outlined key eligibility factors in the Square Dashboard to help sellers understand some of the different factors that can impact loan eligibility.

Having a reserve on your account can effect your eligibility. For more information on reserves, please visit our Reserves FAQ.

Let us know if you have any other questions!

[Cauldron]

Thank you for the response. May I ask why it would affect our eligibility? We are paying our reserve requirement and loan payments daily. We are continuing to process through Square and bring more business from our other processors to continue to build.