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.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[BodyInBalance]

Received an offer last night (Sunday) around 5/6ish at 78% paid

[CTC18]

Was your offer higher? Do you have your bank account connected in the loans tab to “generate a better offer”?

[Twpchair]

I'm not sure if my response posted or not. I received my loan 2 weeks. It was bigger than June's loan around 81/84% paid 3 big day's of sales. Saturday night offer came in and funded Monday. All my indicators were green and no my bank is not connected. My offer in June Bank wasn't connected either I was 91% paid off for that one. Hope that helps. Good luck and keep processing daily!

[CTC18]

Thank you for updating us! I’m at 78% paid. Was your offer higher this time?

[Tony53]

I am now at 86% of a 11 thousand dollar loan, all green and no issues with processing. do you think i will be getting a new loan sometime this month?

[joeyjones16]

My loan is paid off, and I'm all green, and I don’t have an offer. No one knows when an offer will come. 

[stanleycourtney]

Did you ever get an offer? I am processing daily. My loan is 86% paid off.. All green down the board and nothing. 

[Twpchair]

Did you get a new offer?

[stanleycourtney]

Did you get an offer? 

[MKF3147]

Did you ever receive an offer? I have paid off my square loan and am looking for another one? Just curious. 

Thank you.!

[Ilovejewelrysa]

My loan had been paid off also since April it took us only 2 months to pay it back the way they ask to be paid back but it’s now August and they have not made us an offer and all our aspects are in the green and have been staying In the green also no history of disputes or reviews none of the above ever still no new offer!! We are doing better and better every month but still no offer so maybe they stopped or are no considering my personal credit score which is not top top notch so maybe they just do it by random idk 

[allisonb_23]

Guys I got a loan offer at 88% today!!! 10k lower than my last but I’ll take it! Keep processing! Good luck and much love! ❤️

[stanleycourtney]

Congrats I’m waiting for mine to update. I really hope it comes soon 

[Twpchair]

Congratulations!

[Greatlakes891]

Has anyone seen an offer in the 70s?

[stanleycourtney]

Many people above have had offers in the 70s in the past. However the new algorithm seems to be a higher percentage paid off before getting an offer 

[Twpchair]

3/4 years ago I just about guaranteed my loan was coming in between 70-75 % paid off like clock work! Now, you are a 💯 correct my last one was between 81-84% paid off. Hard to tell it came in late Saturday night and I didn't update yet. I had 3 busy days. I was funded on Monday. The prior one was 91% paid off. Most lenders are tightening up right now. 

[Twpchair]

A few here and there my last one was hard to tell 3 extremely busy days and 81/84% paid off and late Saturday my offer came in and funded Monday. Friday I looked and was 81% and sat it hadn't updated yet and my offer came in Sunday morning it was 84% so I was in that range. Last loan was 91% paid off. That was my highest % since 2014 I use to range from 68-78% but times have changed and lenders from all around are tightening down a bit the economy has a lot to do with lending right now.  As things pick up so will everything else 

[NRVGuru]

We've now reached 90% Paid on our current loan, and have been with Square for a long while. A renewal would be a huge help, even if it's not as high as our prior one.

[Greatlakes891]

What’s the average percentage your offers have come before? Mine have been between 55-75% everytime. After reading this I’m not hopeful.

[Tritter82]

I have had about 14 or 15 loans and "average" would be between 75-85%. Although, I have also had one completely paid off, and some in the 90% range. 

I just recently, about 2 weeks ago, had an offer at 76%. I hope thus helps