New Square Loan in 2024

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I’m at a bit of a loss for what else I need to do to be offered a new Square Loan at this point. I’ve been with Square for over 10 years, had 7 loans now that I’ve have paid back early every single time. Metrics are all in green, record sales year. In 2023, record numbers across the board, no refunds, no complaints or issues of any kind in our entire history. Current loan is 80% paid off, but no new offer in site. This is the kind of stuff that causes businesses to find someone else to process through! Please help! I’m sure I’ll get the same old excuses that you guys send to everyone about looking at every aspect of the business. But there isn’t a single aspect that isn’t way up. I’m not sure if there is a new process they are using now, or if there is some kind of issue with my banking or something else I’m not thinking about or aware of. Any help would be much appreciated. Thanks, because I could really use some new capital to start the year off with and reinvest into my business!

[Stacelyn24 · Accepted solution]

I'm really sorry to hear about your frustration with the loan offers. I understand how important it is to feel valued, especially as a loyal customer. Let me try to address your concerns and provide some clarity.

Loan Offers and Qualification Parameters

Square’s loan offers are based on a variety of factors, and while past trends have shown offers at certain thresholds, the exact parameters can change over time and are not always disclosed in detail. Here are a few points to consider:

• Dynamic Criteria: Square uses a complex set of algorithms that take into account not just the repayment percentage but also your recent sales history, account health, and overall business performance.
• Market Conditions: External market conditions and internal policy changes can also impact when and how loan offers are extended.

Value Beyond Transaction Fees

I understand that a 3% card transaction fee can seem high compared to other providers, but Square offers several features and benefits that help justify this cost:

• Integrated Ecosystem: Square provides a comprehensive suite of tools that work seamlessly together, from point-of-sale systems to online stores, invoicing, and inventory management.
• Ease of Use: The user-friendly interface and intuitive design make managing your business simpler and more efficient, saving you time and reducing the need for extensive training.
• Reliable Support: Square offers robust customer support and resources to help you resolve issues quickly and keep your business running smoothly.
• Secure Transactions: Advanced security measures protect your business and customers from fraud and data breaches.
• Analytics and Reporting: Detailed analytics and reporting tools help you understand your business performance and make informed decisions.

I understand the disappointment regarding the loan offer, please know that Square regularly reviews its criteria and your status. I recommend reaching out to Square’s customer support for a more personalized review of your account and to express your concerns directly.

[TheRealChipA · Accepted solution]

Good news, bad news, eh @cmeshine.  There are a number of reasons that COULD be part of why your new offer was lower.

1. Square might be slowing down on how much loan exposure they want to have on their balance sheet.  They are, after all, a publicly traded company that has to answer to their shareholders and investors.
2. If our sales are flat or at least not growing at a good rate to cover inflation and higher interest, then Square’s algorithm understands that inflation is eating into our available cash to pay bills, etc.  Flat sales (or very slowly growing sales) are always red flags to lenders, Square or not.
3. Sometimes how long it takes us to pay off our current loans can be a factor.  Let’s say that previous loans were paid off with automatic payments in 8-10 months in the past.  But for this current loan it took us 12-15 months.  That tells Square that our card processing volume can’t keep you with higher loan amounts.  Yes, they give us 18 months to fully pay a loan, but they obviously prefer that we pay them off closer to the 12 month mark.
4. If our cash/card ratio drastically changes, and cash spikes or is consistently higher than historical for our business, that is another red flag.  Since Square must only consider card volume when calculating repayment rates this can become a problem.

Of course, I’m not saying that any of these contributed to your lower offer.  I’m just throwing out a few reasons why this CAN happen.

[Twpchair · Accepted solution]

Congratulations! I am sorry it's lower than expected but you are correct about daily swiping vs not. That's one of the metrics. I'm retail furniture and I process daily. If 90.00 or 900.00 a swipe is a swipe and they each add up at the end of the day. Hopefully, the next offer will go up! I don't know if the algorithm picks up how your business processes I hope it will or maybe that's something that should be addressed to square. You are not alone and a big market for venues and events. The same goes for contractors who send out invoices and how fast the customer pays. Congratulations on at least getting one and thanks for the update and details about it.

[Twpchair · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[BodyInBalance]

Does Stripe have a POS system like Square?

[BodyInBalance]

I mean like hardware to take in store payments.

[levelpt]

What are the loan pay off terms with stripe? Is it similar to square at 20 % of daily sales? Just curious 

[Mkennedy25]

I’m at 75%, still waiting for an offer. All

factors are still green. So frustrating 

[Stefanieblue]

Sitting at 96% and no nloan offers as of yet... I've been with square for 12 yeaars and I've always received one around 70%.  I've noticed most of my loans has came after I completed my loans at 100%.  So I know for sure I'll be paid off within the next few weeks at the amounts I collect from my customers.  I'm encouraging my clients to use their credit card more to help push me to 100%.  I do not make any manual payments because it will take 7 whole business days for it to complete so if you have made any manual payments that can extend the process of receiving one.  In the past when I complete a loan, I was offer one the following day.  But that one time I made an manual payment to payoff the loan, it almost took them 7 to 10 days for me to receive an offer.  So I'm patiencly waiting just like the rest of you guys.  I will keep you posted if I receive one ... hopefully this helps someone out...

[Mkennedy25]

I’m at 78%, and all factors have been green. I’ve been using square for 4 years and this would be 5th loan. I’ve always paid way ahead of time and been ahead of payments. I wish there was a way to we could know if we’d be eligible instead of being misguided by their factors. 

Now, square is shut down right now. Disrupting our transactions and it has been happening way more often now. It’s really upsetting and messes with our business. If they need to do updates, then update at a time where businesses aren’t being disrupted. It may be time to explode other options.

[Windycity]

I’m pretty much in the same boat, except at 86%. Has been increasingly frustrating and has had me looking at other points of sale like Clover or Stripe. I want to keep using square but if there is no better way to keep their clients up to date on when more capital can be made available. I’m afraid I will be forced to move to a new POS soon. And I expect a lot of business will be doing the same if these threads and others are anything to go off of. 

[Sammie_C]

Hi @Windycity,

We appreciate your post!

It’s important to everyone that lending through Square Banking is done responsibly. We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth.

To help ensure you get an offer that’s just right for your business, Square Banking reviews accounts on an ongoing basis. There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole. The formula balances different factors of your business that may positively and negatively affect your business’s eligibility for an offer.

Please know that Square Banking is committed to helping your business succeed, but we understand that you may need to seek financing outside of Square Banking for immediate needs. If you are considering other options for a business loan, please review our 4 Things to Consider When Evaluating a Loan Offer in our Town Square Blog.

We will continue to monitor your account and notify you if your business becomes eligible for a Square Loan offer.

Let us know if you have any other questions!

[Windycity]

I have lots of questions, but I’m afraid I’m probably gonna get the above answer again. I’m holding out for a little while longer, as a genuinely enjoy using square and have enjoyed my experience with you guys. But I need to grow my business, and without clear instructions to become eligible other than the parts of the page. And without something to work towards. It’s hard to keep waking up hoping to see a notification every day and it not be there. 

[Sammie_C]

Hi @Windycity,

We understand your concern and apologize for any frustration.

We can’t go into specifics about program requirements because the criteria we use is proprietary.

If your status changes, you’ll get an invitation email and see your offer there.

Feel free to let us know if you have any other questions!

[GlitzyCow]

During the outage last week a random factor appeared for me that was NEVER there before. It is on the eligibility page and it says “account activity” right above processing volume. Further on down the page I have another account activity that has always been green. During the outage the new one showed up after my previous days account update and before the update happened the day of the outage. It says “needs work”. Has anybody else had that happen to them? Also- I have been completely paid off since august 2nd with no new offer. It was my 12th. I’ve always paid ahead of time and I’ve never had any issues with my account, ever. I’m so frustrated. Square tells me that was there all along and I have argued with them it was never visible to me and why one is green and one isn’t, in the same stupid category. 

[Mkennedy25]

I’m at 78%, and all factors have been green. I’ve been using square for 4 years and this would be 5th loan. I’ve always paid way ahead of time and been ahead of payments. I wish there was a way to we could know if we’d be eligible instead of being misguided by their factors. 

Square was shut down yesterday disturbing our transactions and it has been happening way more often now. It’s really upsetting and messes with our business. If they need to do updates, then update at a time where businesses aren’t being disrupted. It may be time to explore other options after the loan is paid off if they don’t give me another offer.

[Mguerrero08]

I’m on my 12th loan at 63% paid off. I got my loan Dec 11 and I’m already almost paid off. No offer insight. 

[MishaGRaw]

Normally I would have had a loan offer by 70% but now I'm sitting here at 78% and nothing. It's really frustrating trying to figure it out. Smh congrats to getting your offer !

[eatMoroccan3119]

Update ! 

We are 66% paid off on the current 30k Loan and got a new offer for $51,000 yesterday! Waiting for approval. 

It's only been barely a month too since we accepted the 30k loan. 

For those of you waiting for an offer, keep processing and keep the transaction numbers up 😃 

Hope your offers come soon. 

[Nguerra]

Congrats on the loan offer! 

I had a loan offer for $38k in August and I am 67% paid off. September-October is typically a slow time of the year for me, so it really came in Handy.

I am hoping for at least a $50k this time. I am wanting to expand operations and that could really help me do so. 

[Jose22282]

Did you ever get an offer?

[mrAs]

Presently just crossed the 75% threshold of a 11,000 Loan and hoping for a new one to appear any day now.  Hey everyone, send positive energy this way. My business really needs this loan right now.

[stanleycourtney]

Did you ever get an offer?

[NRVGuru]

Good to see some offers floating around! We've hit 88% paid over here, and would love some extra inventory to jumpstart our 1st quarter, especially after our big move.

[CTC18]

Is anyone still getting loans in the 60% range? I’m currently at 60% on my 11th loan and have paid it back 4x as fast as the minimum due.