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.

[brown17]

Any update?  Im still sitting with no offer

[Twpchair]

Yeah, I haven't seen any one in the low 70s in awhile. 2/3 yrs ago almost like clockwork I could guarantee an offer between 70-75% max and a new offer.  Not no more. 

[brown17]

I haven't been receiving daily updated on dashboard.    Mysteriously as soon as I called in to inquire via chat today it immediately updated.   Still no offer.     I am wondering if something is going on with their systems.  Between missing the daily updates and all the other down issues something seems off. 

[Twpchair]

Yeah, when I just logged in they are having technical issues now. With the factors being so important now it's just another thing we need to watch!

[Twpchair]

Still trending higher percentage paid off. A couple I saw in the high 70s but that's it. Most are high 80s and 90s. Good luck!

[Healthyketo]

86% paid off  sales increasing still at “needs work” for payment processing and payment frequency. I’ve lost hope. Waiting to pay off to see what my next move is 

[Twpchair]

Are your metrics correct? I know there was a glitch about a week ago and people had to call in and have them look at it. The next day every thing updated correctly? 

[mydpins]

Update, as of right now at 94% paid on a $70K loan and no new offer. 

[Twpchair]

Hopefully very soon!! Good luck to you!

[ohboi]

70k? Sheesh, how much are you processing monthly to recieve an offer like that. I’m processing 323k-375k yearly and all I get is 8-11k loan.

[Jose22282]

At 94% as well and no offer. I’ve never seen it take this long to get another offer. Hopefully we get offers soon. 

[Twpchair]

The percentage for most (not all) is higher paid off before the next loan. This has been going on since early summer. I don't know if we will see the old days of 70% loans. Good luck and hopefully soon!

[hadaniels]

At 80% on a $30K and on my 4th Loan.  All previous done within 6 months.  All green across the board and $250K or more processing consistently for past 3 years.  Previously was offered at around 70-75%.  Reached out to Customer Service and got a repeat of exactly what is written on website (didn't even bother to try to explain if criteria changed).  Looking at other POS Systems now as Square has gone downhill in the past 12 months and with Customer Service like robots, I am afraid it will continue.

[Twpchair]

This has been the trend from the summer till now. A higher percentage paid back for most. My last one was 81/84% paid back in March and June was 91% paid off before I received a new offer. Good luck to you!

[Luckyme1]

Yep, me too. Your numbers (almost all of them) are identical to mine. Waiting at 79%. Good luck!

[Twpchair]

Any news yet? 

[Twpchair]

Any news yet? Hopefully, you received an offer! Good luck to you!

[VanKalkerFarms]

Well this past Thursday  was quarter 1 2024 earning results day for Block/Square.  Square loans up huge again this year.

Square Loans facilitated 129,000 loans totaling $1.32 billion in originations, up 17% year over year.  That's huge with an average of 1,450 loans per Day!  and an average of $10,200 per loan.  129,000 in 91 days (131,040 minutes) so almost exactly 1 loan per minute all day every day non stop.

So while it may seem like you aren't getting a loan for whatever reason, there are literally over 10,000 loans happening a week.  Personally I think Square even starting to offer loans before the first one is paid off was a complicated decision.  Because once you get the taste at 73% or whatever now you think that is standard.

Best of luck to everyone in your businesses and may your cash registers sing.

[Twpchair]

We are all gonna have to remember that the days of 70% paid off isn't the norm any more. Very few posts have said the received one in the low 70s most (not all) are in 80s to low 90s. A good handful this winter completely paid off! So we know those days just aren't happening and we should be ready for it. As the Market and economy flex so do lenders. Square is processing loans everyday in record numbers. Only some square user post here. Good luck to everyone!

[brown17]

Sucks cause i do monthly invoices which now wont be paid again till next month.  (Few will trickle in here and there)   so my metrixs will go down and i probally wont get another chance till next month.   Im 78% paid . Just keep grinding I guess! 

[Twpchair]

Ughhhhh, yeah that's a hard one to try and figure invoices vs daily card transactions. You think they would know know your processing habits. A few others like yourself get the same offers when they get bulk amount of invoices that come in. Good luck!