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.

[BodyInBalance]

Waiting but at 71%.

[CTC18]

Does anyone have their bank account connected? Trying to figure out if that helps or hurts.

[Tritter82]

Mine isn't and I got a loan in October. I won't connect mine. 

[Twpchair]

I've had 3 loans now since they started to ask to connect to your bank account and I have not that! I can't anyhow with square using an outside service. 

[Tony53]

Hello all, I’m at 81% and have not received a new loan. This loan was given to me in may of last year. The monthly minimum payment has since disappeared and we will not know what the next “monthly” payment will be until March 4th. Do you think the loan would be around the corner? 

[CTC18]

Still waiting at 67% of 67k loan. Currently on my 11th loan since April 2020.

[GoodBoyDogTrain]

I'm sitting at 75% paid off, and just crossing my fingers at this point. Last one was offered around 67%. Is everyone waiting longer for loans to be approved than in the past?

[Tony53]

Im sitting at 82% and nothing 😞 

[GoodBoyDogTrain]

Are your sales down or anything? My January was a little slower than last year with weather and everything being a bit worse, but my February and December were higher than ever. Every thing is staying pretty consistant on my end. I just wish we had more insight on what to aim for, or even a reason why we aren't getting offers at the moment. They always come in exactly when I need them, but I've been hearing a lot of negative things from others in the community and it makes me nervous!

[CTC18]

My sales are higher than ever (consistently) and nothing. Sitting at 68% paid.

[GoodBoyDogTrain]

I just wish there was someone to talk to, that would explain this reason so that I wouldn't stress lol. My January this year was down 2% but both December and January we up 10% from last year. Everything in the green. I guess it's just a waiting and guessing game.

[stanleycourtney]

I called today and they were closed. They won’t tell you anything except that it’s computer generated and refer to the seller community for questions. I am on my 7th loan with them 80% and still nothing. 

[GlitzyCow]

Y’all waiting on loans in the 60% paid something is completely baffling to me. Idk why square would even offer at that %. Just crossing the half paid threshold expecting another is a little like what the heck. I’ve had 12 or so with square and typically was in the 80%’s before offering another. The last one was 93%. Currently paid for months with no new offer. Don’t you think you are jumping ahead a little bit? 

[stanleycourtney]

I think for most sellers it is frustrating not knowing the exact qualifications for a loan. Even though they give you a guide to go by they still say they can not guarantee your loan. Most people just want to know how to qualify and they don’t give you exact answers on that. 

[GlitzyCow]

Even when they do directly tell you something it’s usually just a  lie. They’ve lied to me for 8 months over something I repeatedly asked them. Most the operators have no clue they are at home with kids screaming in the background and they just want you off the phone so they will tell you anything you want to hear. When you finally get a response from the loan team or account services it is just generic mumbo jumbo to keep you at bay. 

[stanleycourtney]

Yes I have heard this too. I wished it was more clear like others but it’s not. 

[CTC18]

My 11th loan offer (this one) came in at only 61% paid off and I was offered 30k more than the previous loan. Every single loan offer I’ve gotten has been at between 61-74% paid back.

[GoodBoyDogTrain]

The second loan I recieved was offers at about 91% paid off. After that the average has been 60% to 75% on average. On the page under loan repayment they even say the average is 3/4 paid off before another loan is offered. 

[moxiemavenandco]

If you read the thread, most of us have been offered loans around the 50% paid mark since 2018. So no, anticipating a loan around that percentage is not jumping the gun as that has been most of our experience with square loans thus far. 

[GlitzyCow]

That is insane. That isn’t even good business. I’ve had over 12 loans and have never been offered capital at 50% paid. Normally in the 80% time frame. 

[BlueStarDFW]

Yes it’s frustrating. I’m on my 5th loan I believe, and have always gotten an offer around 75%-80%. In at 88%. On one hand I know this is an “offer” and not something that we’re entitled to. But on the other hand I’m like “well hell, they spoiled me by consistently giving me loans at X% and now they’re leaving me hanging with no communication”