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]

You're welcome! Congrats to you!!!! 

[FloresLiquor]

Updates:

Got an offer and approved loan in 1st account on 4/11/24 ✌️ 💪 😀 🎉

Thanks Square for being considerate!   Square funding  is a game changer that fuels business growth. So I appreciate loan offer and approval !

  Square loan offer and approval not helps business grows but it at also boosts confidence of Square customers to remain loyal with Square !

[stanleycourtney]

I have been offered multiple offers with square loans in the past. I have always been on time. I have never missed a payment or deadline. My entire system is in the good….I am 94% paid off with no offer in site… I have contacted Support several times and keep getting the generic answer…..They don’t know.. I feel like they do not value their loyal customers…..If there was something hindering my loan offer I would like to know what it is… I would like an answer as to why I haven’t been offered a loan…..I guess I will keep on until this  8th loan is paid off.. Then look elsewhere for processing system. 

[Twpchair]

Unfortunately, the offers right now are kinda bouncing for some around 70-80% my last one 81/84% paid off really busy 3 days and late Saturday night came in accepting it and funded Monday. My previous loan was 91% paid off. I have seen the percentage paid back is higher for most (not all) one just posted paid off since December and just got his offer 4/11/24. Keep plugging away and hopefully it will come in sooner than later! Good luck!

[stanleycourtney]

Congrats on your offer. I have had 3 busy days in a row. My loan is currently paid up to 96%. I still have no loan offer. I process a lot through square and the only reason I stay with the square processor is because of the loans. I have recieved a lot of them within the 2 years…However, the vague answers that square gives us for eligibility on loans is very disappointing… Everything can be green all down the board. No change sales get higher every month and they STILL will not tell you why you aren’t eligible for a loan. 

[yoyobanhkhot202]

Hi, have you get any offer yet? 

[Jfred3026]

Has anyone had any luck getting a loan in 60% area this year ? We usually always get our loans at 65% and we have great growth this year , I was just wondering if anyone had any luck ! Thank you ! 

[Greatlakes891]

We are at 79% and never had to wait this long still nothing very disappointing 

[Twpchair]

Hello, it looks like it's trending higher percentage paid off again. I received mine about a month ago and it was 81/84% paid back. It came late Saturday. My previous in June was 91% paid off.  That was my highest % since 2020. There has been a couple this week and last in the 70% paid off range and some completely paid off then it came in. Each person,  each business is different. I usually watch the economy and stocks.  It is not very stable and lenders tend to pull back some. Good luck to you!

[bargainwright]

Nothing here. We've usually gotten loans between 60% - 65%. Our current loan is 4 months old and paid off 72% without an offer. We've had well over a dozen loans over the past 6 years. Not sure why there hasn't been an offer for us. Really kinda disappointing as we're now in season.

[ewing1]

Same. 60-65% and now nothing. 

[Twpchair]

Unfortunately, I haven't seen many under 80s lately. The trend is a higher percentage paid off for most (not all) good luck to you!

[Twpchair]

Most are in the 80s to 90s. That's what seems to be trending for most (not all). They are still doing loans daily though. Good luck to you!

[Twpchair]

I have not seen anyone myself in the 60% paid off range in months upon months. Upper 70s to upper 90s seems to be around the range right now. Lenders are pretty tight right now. Most not all are a higher percentage paid off if not paid off before new offer comes in. Good luck!

[bargainwright]

Thought I’d follow up to my reply from last week. I did get an offer last night! We had just hit 76%. Although our sales are up 280% from last year and we paid down the previous loan in under 5 months, the offer was only $2000 higher than the previous loan. Truthfully, based on previous advances, I was expecting about $9000 more than offered. We’ve had over a dozen loans throughout the years. This is the lowest offer increase on a new advance since I’ve been with Square. 

That being said, it’s enough to get the inventory we could use now to grow even more. I’m hoping this brings some hope to others who are waiting and hoping for everyone’s fortunes to change.

Best of luck my friends!

[Twpchair]

Thank you for the update and congratulations!

[HalalBbqSlayer]

Our loan is at 85% and no NEW OFFER. . . Very unhappy that we haven't received a new offer. Wonder if Toast moves faster???? Might try. . .

[Twpchair]

If you jump on any of the POS sites like this no they aren't happy either! I read 3/4 on Sunday and it's lenders in general that are holding back. The market is all over the place and they are waiting to see when it settles down. Just keep plugging away and hopefully soon things will settle down and back to normal! Good luck!

[brown17]

Ill tell you this.  Yet again my account is under review whenever i get an influx of payments.  4th time in a month. Hard to run a business like this

[Twpchair]

I do as well when I'm getting close to an offer. I believe that is what kicked in my last offer. I had a 3 day sale going on and it was extremely busy and then boom late Saturday night my offer came in. Slightly higher than the previous offer but like other poster stated above. Mine should have roughly been around 10k not 2k increase. I took it and was funded on Monday. Good luck to you!

[Charliesparties]

I just hit 90% and no new offer. Previous offers at 65 and 67 percent. Sales up almost 300% since January.