Denied for a Loan and no New offers for 6 Months

[Kengroberson]

Back in February I received a loan offer but then was denied. The reason given for the denial was due to there had been a handful of chargebacks over the past year. I have not received an offer since than and I just get a message that says my business is ineligible but keep processing. Has anyone else experienced this? I have had 6 loans with square since 2021 and All of which have been paid off within about 1/3rd of the term. Does anyone have a similar experience; and was there ever another offer? I process $400K+ year. How do other processors compare?

[PartyManiaMD]

We currently Process over $400k a year and received a loan in July. Please note there are a variety of reasons that Square might decline to make offers. If you're paying off the loans in 1/3rd of the time you might want to reevaluate even taking a loan in the first place as the whole point is to structure those funds upfront and allow for a monthly payback that doesn't negatively impact you.

Also how many chargebacks have you had? We have had one that was via gift card fraud from our online store, chargebacks should be extremely rare.

Are you pre-paying the loans to pay them off quicker? If so it could appear to Square that you're taking loans and repaying it with the loan in order to get approved for higher loans.

Keep in mind most of it's speculation, when you go to your loan eligibility does it say why you're ineligible? Sometimes it will show areas that you can improve upon if you're not eligible.

Best of luck and hang in there, I have a feeling Square has slowed down on loans during the summer months because most businesses take a huge dive in sales during the summer months.