Loan Offered Then Decliend

[missroz]

I recently received my first offer of a loan from Square.  Decided to give it a try because I desperately need a new vehicle for my catering business.  All of the requirements for eligibility were green.  So, full steam ahead.  Then, after accepting, I was denied.  Suddenly the account activity indicator is red for needs work.  The only reason they state is due to previous loan applications.  Well, they only loan application is the one I submitted based on the offer they made me (ultimately denying) and now I'm not eligible at al  Does this make sense?  And, where is the follow up or customer service outreach for possible documentation or information?  

Confused and again disheartened by the Square processing system that seems impossible to thrive in..  Any suggestions?

[Nancy__ · Accepted solution]

Hello @missroz,

Sorry to hear about the trouble you’re having, we appreciate you letting us know.

We have messaged you directly about this matter. 

Keep in mind, after you apply for a Square loan, your application goes through underwriting and verification processes to determine whether your business qualifies for the loan you requested. All loans are subject to further credit review. The specific reasons your application was declined can be found in the email notice you received from the Square Loans team.

We understand being declined can be disappointing, and we’re doing our best to increase transparency behind this process.

For more information about declines, please check out this Support Center article.

Please contact us directly, our Square Loans line is open between 8am-5pm PT Monday-Friday if you want to give us a call.

[Excellentia]

Thats understandable, Nancy. But why call them PRE-APPROVED if its not? 

This is MISLEADING and business owners who could really use the loan to grow their business are consistently disappointed. I have been offered products from your company where I was told I qualified for only to be turned down. So...really...is it PRE APPROVED? Or does Square make money by the number of applications they process?

This is very misleading.

[Sammie_C]

Hi @Excellentia,

We understand your frustration and apologize for any confusion.

All loans are still subject to credit review. This means that a pre-approval doesn’t guarantee that you will be able to obtain a Square loan. However, Square does a thorough review of your Square account (like your processing volume and payment frequency, among other factors) before pre-approving you for your loan.

Let us know if you have any other questions!

[AllNewU]

LOL Pre approved for 186K!  I do over 1M in CC processing with Square. I am sure they are going to miss the 1/4M -1/2 M in processing ! I am constantly getting offers to switch. Getting ready as they review my application. I used another lender and that will be paid in 8 weeks. I will just use them again and start looking. Patient Now wants my business. 

[Twpchair]

I am sorry 😞 you are having issues. You might be the first one I've seen this happening with. Just so I understand correctly you were pre-approved and they denied it because you have equipment loans? Did I get that correct? If so this is a new one for me! I've been with square since 2014. I try to stay active here and I've never seen this before. I have had equipment loans and square loans at the same time? I believe it was roughly 2 years ago when I got new card terminals etc. I'm pretty sure I had a loan already and was paying it back when I needed to upgrade my terminal and other things as well. Good luck and keep growing and growing! It sounds like you have been doing a great job! Congrats on your business! 

[AllNewU]

Why are you apologizing to the person that was defending my case? I am the one that was pre-approved then declined due to having equipment loans. Loans that are all in good standing! Good credit score and still growing and increasing sales in my business. I have been in business for over 20 years. Using square for 12 years. Let it be known that I have done over 1Million in processing cc sales the last 2 years and continue to grow. Square doesn't care about my processing volume obviously. I will be leaving and will announce my exit once I am ready to learn a new system. These equipment loans are for the next 3 years. If I have to wait 3 years for a square capital loan I won't need any funding because ALL of the money that I am processing will belong to me and won't be paid toward my equipment!  I now feel that I am too big a business for square. Most of the people her are talking about 10 and 20K loans. I have had about 7 laons all pain on time, actually earlier than the due date. 

[AllNewU]

Thank you for understanding the fact is that I have equipment loans to run my business. These loans have always been there but are now being viewed and the cause of me being declined for a pre approved loan. I am showing the increase in sales, increase in processing volume and with over 1 million in sales you would think they would want to keep me. I am not leaving just yet. I will await the slower months as I search for a new processor. Certainly doesn't help when square goes down out of the blue and I have to use my back up processing. So glad I set that up because they went down once again today and I process about 1K per hour on any given day. Sometimes more depends what is booked in my schedule. I have other offers non stop for capital. I will just ignore the next pre approval and will know that they are fearful of my 20 years of business history. Certainly sounds risky to me too! LOL 

[Twpchair]

 That's what I found on Square's site. So under the loan terms, it is listed. If I read that better I should have caught it. I was hitting the more common ones lacking or changing information on your account. I hope everything worked out for you in the end! 

[Reynolds1018]

How long typically does it take to be offered a loan again? We have paid off countless loans, got offered one, took it then it declined and we are not so patiently waiting for another offer bc this is what we use to prep for the rest of Q4 & we’ve never missed a minimum payment. Thank you. 😊 

[Twpchair]

Did they give you a reason why? I've seen it often and most get an offer again and approved. Knock on wood I haven't had that happen. I would assume the algorithm pickled you off as eligible and something else triggered a person to look at it. Can I ask a few questions and I can reach out and offer a better understanding. 1. What was your % at? 2. Any pending or during the approval returns/refunds or disputes? 3. All banking information the sane and has no issues. The most I've seen lately had nothing to do with you but Square needed to either add your EIN number if you changed anything relevant to your account. They asked for the info to be sent in and then it was or seemed to be faster than the others waiting for an offer. One lady got married and updated information on the dashboard. A couple switched banks type thing again in the dashboard. I think it would be great if they suggested calling over big changes and uploading right then so it doesn't stop them or at least hold the offer for 3-5 days. Good luck!

[Twpchair]

Do you have equipment loans? By any chance?

[Twpchair]

 Here is one I missed! I just goggles and pulled up previous loans after scrolling down and missed this one! I hit the more common one changes of major information recently on the dashboard and square is just double-checking. I'm an ID theft person bad they got me. So hopefully you can get it figured out fast!

[AllNewU]

This just happened to me after successfully paying of 5 different Square loans. Ironically I just got a loan for over 100K after they denied me. It's fine I will get money elsewhere and not use square capital. I was also pre-approved and not I have a declined loan on my square record after they pre-approved me for the offer. Go elsewhere for your loan! Interest rate is about 7.5 Prime now.  They don't report to the credit bureau so it shouldn't keep you for getting a loan elsewhere. I did love square capital until they pulled this stunt. 

[Help91480]

Prior loan applications needs work How long does it take to switch to good? Did it ever switch back to good? 

[AllNewU]

Not yet!   I have had 14 prior square loans all paid earlier than expected. My most recent loan is at 62% paid. I read others were offered new loans at 70% repayment. Maybe it depends on the amt. borrowed. I check a couple times a week to see if I am going to get a new offer because I have plans for that Square Capital Loan. They promoted themselves as one that didn't report to credit agencies yet I was declined because of a recent decline on a loan. I am not sure if it is their decline or a bank that declined me because my taxes were not completed to prove my business gross went from 300K-1M. I did get approved from a finance company for that loan but now am finding I need to put cash down in addition to higher interest rates. I believe square capital fees went up too. I'll be fine with out it but by the time they offer me a new loan I may not need it anymore. Square capital is one of my favorite things about square. I feel like I am a good customer yet their customer service sucks! I tried calling to get assistance for things they started charging me for without notification. Fees go up and no notification attached so you must call another country to get your answer. Square uses virtual assistants from outside the US to save money apparently. The contact representative I have reached out to 3 times has yet to return my call. I don't think he works there anymore and may have been replaced by virtual assistants. I believe it is just tighter control of funds during these (trying) economic times. Times that I am not experiencing my Gross is still going up in leaps and bounds and preparing for exploding and hiring more help to manage the increased business!  

[Jennis]

I was recently declined for a loan due to one chargeback. Did you ever become eligible again after being denied? Does it still say needs work under the indicator or did it change to good. Thx you For your time

[Twpchair]

Hmm, I don't know if I've seen someone declined for just one charge back 🤔 have you had charge backs before? I've been with square since 2014 and I have never had a charge back due to our policy. But 1 seems kinda odd to me? It is one of indicators they use for loan offers. I have seen others who had a few charge backs get loans further on down the road. Is there a time frame I'm not sure? I would just watch where it says needs work now and when it goes green keep an eye out there. I do know I'm seeing more and more getting loan offers and then denied. Each one or issue wasn't the same and some didn't say they had anything wrong and everything was green? I know after watching the news yesterday and inflation rose way higher than they expected we will start to see lenders holding back a bit. Good luck and hopefully another one will come in soon.