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]

It's rough right now. I know many businesses are doing great but unfortunately, the market, the economy is pretty up and down right now and lenders are holding tight. Hopefully, it will get better soon and lending will start pushing out the loans! Good luck!

[Pecard81]

Iam at 83% paid off in 4 months, last loan which was my 5 or 6th came in till I was about 91-94% much lower then my previous one, I hope to be getting a offer in the next few days. I have read some have received in the low to mid 80% so I am eagerly waiting 🙏👌

[Downtimedawn]

I didn't realize the loan offers had slowed until I came here to read.  I was fully expecting a new offer when I hit 70-75 which had been the highest I'd ever had to pay. All of my loans have been paid off with a new offer in 3 months or less so I was really surprised not to get anything yet.  Bummed but hopefully soon

[Pecard81]

I just received an offer and accepted it, I am at 84% paid back in 4 months, loan is higher then my December loan, but still down from previous ones.   I’ll keep you posted when approved and funded 🙏🙏🙏

[Twpchair]

Congratulations!!!!! I am happy to see that it came through for you!

[Twpchair]

It is rough right now unfortunately. Many lending institutions are holding tight right now. The market is all over the place! Hopefully, things will settle down soon and lenders will start picking up! Good luck and keep plugging along!

[Twpchair]

Unfortunately, since early summer the percentage rate paid back is trending higher paid back. Lenders are holding tight right now. Square is still doing loans daily just the good Ole days of 70% are gone for the most part right now. Good luck!

[VanKalkerFarms]

Loans have done the exact opposite of slowed, there are more loans everyday than last year which also was a recored etc.  Right now 1 new loan is start, not offered but accepted and started, EVERY minute.  That is incredible.
 Now it may be that the percentage paid back has or has not changed, personally I don't get why it would even be an option to be 70% paid back on a loan to then get another loan and have a lot of that loan go to paying back the first loan creating a circle of fees and payments digging you deeper into needing loans.

[Twpchair]

I agree 💯 my last loan was 81% paid back ok fine. My loan in June was 91% paid back! I prefer the upper 90s! I am getting more of the money instead of rolling over 30% to the new loan and that means less money! I try to tell people hold on square is still lending every single day! Unfortunately, they all don't post here. They could do away with the 70-75 % paid off and it wouldn't hurt my feelings! I was one who was in favor of the talks about a line of credit vs loans. Those talks didn't last long. Have a great day!

[VanKalkerFarms]

Absolutely, a line of credit is the way to go. 

[GAA]

One a loan is paid off, how quickly do you get another offer?

[TheRealChipA]

Hi @GAA.  There is no hard and fast answer to that question, and Square employees can’t make any promises, either.  Loan offers are regulated by an algorithm that monitors our accounts, our card processing volume, etc, and will send us an offer when it determines we are eligible.  This can take days, sometimes, and weeks, other times.  I’ve even heard of months passing before a new offer is sent.  It would be wise to keep in mind that the lending market worldwide is in a crunch right now.  Lenders — even card processing merchant loans like Square — are being very conservative and limiting their exposure on their balance sheets right now.  This means that new loan offers are coming later than they might have in the past.  It also means that many sellers are seeing lower offers even if they have higher card processing volume.  Hopefully, the lending market will ease up as 2024 progresses, but of course there are no promises.  If you are absolutely hurting and need a loan now, your best bet would be to reach out to a local bank.

Best of luck,

[papaya19]

I am a little frustrated as I’ve been utilizing square for almost five years and have yet to receive another offer. All of my metrics are in the green, I am 85% paid off, and I consistently make my “minimum” payment a month and a half before it’s due every 60 days. The only thing I did different this time was link my bank account. Has anyone noticed if this changes things? I am losing hope. 

[frances_a]

Hello @papaya19 👋

I have merged your post with a thread discussing this same topic. I recommend checking out the Best Answer in this thread for more information on how the decision to offer a loan is taken.

Thank you.

[msirois1985]

I paid off my second loan early. I still have no offer for another loan and when I check my eligibility it says I am not eligible, even though everything listed states "good" beside it and my payment history was steady and growing. I don't understand. Given the high fees also, it may be time to switch to another processor. 

[TheRealChipA]

Hi @msirois1985.  You didn’t ask for help or advice here.  It seems that you might be just venting and letting off frustration, but I’ll offer a little perspective here.  If you didn’t want that, you can stop reading now, and please accept my apologies for being so forward.

Loan offers are regulated by an algorithm that monitors our accounts, our card processing volume, etc, and will send us an offer when it determines we are eligible.  This can take days, sometimes, and weeks, other times.  I’ve even heard of months passing before a new offer is sent.  It would be wise to keep in mind that the lending market worldwide is in a crunch right now.  Lenders — even card processing merchant loans like Square — are being very conservative and limiting their exposure on their balance sheets right now.  This means that new loan offers are coming later than they might have in the past.  It also means that many sellers are seeing lower offers even if they have higher card processing volume.  Hopefully, the lending market will ease up as 2024 progresses, but of course there are no promises.  If you are absolutely hurting and need a loan now, your best bet would be to reach out to a local bank.

Best of luck,

[Twpchair]

Did you pay it by processing cards or make a payment yourself? There is a difference between the two as far as loans an eligibility period. If you paid it off yourself you will have to wait 7-10 business days before you go back into the process of the algorithm. If you paid it off by processing cards then you just need the algorithm to pick it up. Good luck it has been a good couple of weeks since I have seen anyone post I received a loan. 

[Pecard81]

Any news on loans? I am at 83% and probably about 3 weeks out of being completely paid off, when I get this close my mind starts to think on what I could do with the funds, this time I would like to redo my restaurant kitchen it’s probably a 3-4 day thing so this would go a long way! 

[brown17]

Im way over my normal processing and 74% paid.    Was hoping for something soon but if i didnt get it after the amount of processing ive done over past week then i dont see one coming anytime soon. 

[ianssoph]

I’m in the same situation. 77% repaid with sales increasing. No offer. I will update if I receive one!

[Twpchair]

It looks like a very slow couple of weeks. Square is still doing loans daily. Not everyone uses the community services. Just a small portion post or ask questions. Good luck to you!