New Square Loan in 2024

[SPPhotography1]

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.

[ClareJ]

I’m also a Salon owner at 81% currently and have received offers twice a yr for the last five years. Did they offer you anything yet?

[coolcoffeecrumb]

Any offer? I'm at 78% and could really use a new offer! 

[CTC18]

I’m at 61% and that’s when my last offer came in. I’ve paid my current loan back 4x as fast as the minimum. I’ll post here when I get one but nothing as of today.

[MKF3147]

Did you ever get your loan? 

[moxiemavenandco]

In viewing the feeds in the seller community there seems to be a growing concern regarding squares inability to provide answers regarding square capital. They post the same generic answer for any discussion pertaining to loan offers. I had looked into clover prior and opted to stay with square, however if other companies can offer better incentives for businesses, then square needs to play ball or be prepared to lose customers in droves.

[Dawggos]

Offers are not going to happen with Square laying off 1000+ people. 

[stevestireworld]

I do half a million yearly with Square in processing and i'm at 82% and no offer. It's not looking good for Square! Not supporting even your biggest clients is unbelievable.

[PartyManiaMD]

They just laid off over 1,000 people. Available Capital has probably been restricted to stemming losses accrued from their other product lines.

I'm sure Square would love to be back to business as usual and offering reasonable loan terms to their clients but the truth is that tech companies are hemorrhaging money.

[Jjpainting]

Shouldn’t laying off 1000 employees allow them to loan out more capital since their payroll just drastically went down 🤷‍♂️😂

[BUZZONBLACKBERR]

Same boat - 89% as of today and had over 7 loans  in the past offered at 70-75%. Hoping at 90% I will get offer. I spent over 45 minutes on the phone waiting for  real person in loans department for the same , we don't know response. I'm hoping soon.

[stanleycourtney]

Did you get a loan offer? 

[moxiemavenandco]

I haven’t received anything yet 

[ChubbyChicks]

All of these comments are scaring me. Have any of you received their loan?

[Stefanieblue]

I received one in yesterday and was approved immediately… I was 100% completed… I didn’t connect any checking accounts and so yes they are still giving them out..

[Mishababy34]

YAYYYYY!! THIS CALMED ME DOWN

[Twpchair]

Yes, square is still doing loans. It has seemed to be a higher percentage paid back compared to the past of 70-75% range. Most are around 80% to completely paid off. Hopefully,  you have received yours by now. Good luck!

[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.

[Twpchair]

In the 60% paid off range I have not seen any one at 60% it's trending to the upper 80s to paid off. I'm sure you have received your new offer by now. I just wanted others to see the new range. Of course, it's not everyone but on the whole it's higher paid off. Good luck to you!

[moxiemavenandco]

Sitting at 62%. But seeing that someone finally received one has me much more hopeful than I was!

[CTC18]

Also sitting at 62% 😮‍💨

[CTC18]

Received an offer today at 78%. 🙏🏻 Now just waiting for approval.