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.

[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 

[stanleycourtney]

congrats, I am at 90% and still waiting

[Twpchair]

Did you receive an offer yet? Fingers crossed for you!

[stanleycourtney]

I did in April 24th It’s 80% paid back now and extremely lower than my last one… What’s the algorithm looking like? 

[NRVGuru]

Just reached 90% as well, even if it's lower than our prior loan, a renewal would really help right now.

[stanleycourtney]

Same. I just hit 92% and nothing so far... I gave up on it a while ago. 

[gabbyrppmn]

Sitting at 82% and waiting as well. I wish everyone the best

[coolcoffeecrumb]

Congratulations!!! I'm at 84% and still waiting 😢

[moxiemavenandco]

Hi! I’ve been with square since 2018, and have gotten loan offers almost every 6 months (mainly bc that’s around the time that I’m usually at least 50% paid per the previous loan).  I was wondering if anyone has received a square loan offer in 2024 and what the algorithm is looking like. Any help input is appreciated. Happy 2024!

[sayra]

Hello, @moxiemavenandco. It's great to hear about your experience with Square since 2018. As for Square Capital offers in 2024, we are limited in account details on this platform. We recommend checking your Square Dashboard or contacting our Square Loans Team for more details. Wishing you a successful and prosperous 2024!

If you have more questions or need further assistance, feel free to ask.

[GoodBoyDogTrain]

Any one gotten anything or had any news this week??

[AllNewU]

Twice I have been offered a loan over 100k and both times I have been declined once I have accepted. My business is processing over 1M in CC with square yet they put the offer out then rip it out from under your feet. I was not expecting to be declined once they put an offer out for 186K. I wasn't going to take the full amount. I am tired of hanging around and being loyal to be able to use Square Capital. Isn't it supposed to be for working capital? I have a medical spa with multiple devices that are the prices of condos and homes. Everyone else is loaning me money. I don't really need square capital since there are so many offers to give me money. I believe it is time to learn how to use a new system that fits my business needs a little better. I am awaiting a call/email to tell me why they won't lend me the money they just offered to me. "You have been pre-approved!"  OOPS! So sorry to rip your heart out. Please go elsewhere for capital for your business.   I think I will go elsewhere for marketing, appointments, and the big one, the square processing!  My business deals with BIG numbers!  If you don't like the big numbers and they scare you I will go elsewhere! I am so angry right now because I started planning for this square capital loan. My last offer was Aug 2023 and the same thing happened. I was sure that this one was good because who pre-approves and then says no to a business in good standing processing over 80K a month? WTF!

[Twpchair]

I did about 3 weeks ago! I had 3 busy days and Saturday night a offer came in and I accepted it and Monday was in my account. Slightly higher than the last one in June. I was 81-84% paid off on my last offer and the one in June was 91% paid off. I don't have my bank account connected either. I can't I had ID theft last year and have passwords and pin numbers to get into my account and the system they use to connect to your account can't access it. If any of this helps! I'm seeing anywhere from mid 70% paid off to completely paid off before new offers. Good luck!

[SPPhotography1]

Can someone from Square Capital or Square Loans please manually review my account. I have been with Square for close to 10 years and I’ve had 9 loans with Square. I am 80% paid off on my current loan and should have had a new loan offer by now. ALL of my metrics and eligibility factors are in the green. My sales and customer number are all above normal. 2023 was a record sales year. There is absolutely no reason why I haven’t been offered a new loan yet from Square. Please just look into my account and view the numbers for yourselves and then offer me a new loan. I need it for business capital purposes and it would greatly help right now! Thank you!

[sayra]

Hello, @SPPhotography1. 

Thank you for reaching out to us. We understand your concern, and we appreciate your patience. We have combined your question with another seller who inquired about a similar matter. I encourage you to review the response we provided. Please know that if we had more details to offer, we certainly would. Your understanding means a lot to us.

If you have any further questions or if there's anything else we can assist you with, feel free to let us know.

Have a great day! 

[Movecrew]

Any luck? I've been with square over 10 years and and I'm currently over 80%.

[Crosstimberkoi]

Nothing here at 80% also.

[Crosstimberkoi]

We've been with square a couple years now and recieved multiple loans.  The second loan came when 80% was paid of in seven months.  The 3rd came when 60% paid off in two months.  Now at 78% paid off in six months.  Our sales drop during the winter season due to weather. So when I look at the eligible  it says needs work on the top two slots if it's under past month all green if under past year.  Curious if its on an fiscal year where you have to process ten thousand before it triggers.  Then that goes into another factor.   Square loan doesn't look at all our sales.  Some people pay by check and that goes to our brick and mortar bank. 

Now would be a great time to see a renewal as we are gathering inventory for a new year. 

[Summer2024]

Hi @Crosstimberkoi - Thanks for reaching out to us here on the Square Seller Community👋

I went ahead and merged your post to an existing thread where other Square Sellers have discussed Square Loans and eligibility. We merge duplicate conversations together to keep like comments in one place, and to make it easier for others to find the thread in the future. We also recommend reaching out to our Square Loans team, as every Square Loan is different. Furthermore, we are limited in account details regarding Square Loans. 

I hope this information is helpful, but please do let me know if you have any additional questions.

[Crosstimberkoi]

This doesn't answer my question on has anyone recieved a loan when it states needs work for the month but good for year.  It also doesn't answer question...does it reset fiscal year with the $10,000 in sales to even be looked at.  

[MayaP]

Hello @Crosstimberkoi, I appreciate you reaching out and understand your concern. For all loan inquiries I suggest contacting our Square Capital Team. You can reach them at 1-855-700-6000, squ.re/contactsqsupport. The team is available to speak on the phone Monday through Friday from 8am - 5pm PST.

[Firstçreek]

Any luck with your loan as of yet?