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]

My last offer was between 81/84% paid off in March after 3 busy days in a row late Saturday night. It was slightly higher and my bank account not attached to it. I turned it down then because I got a better line of credit through my credit union.  I stay on this page all year long after 12 years and it's been extremely slow right now with people posting Not everyone post but year after year square is offing loans but now it's trending a higher % paid back. Hopefully, that helps! If more people posted it would be great then you could see the trend! I wish you the best!❤️

[della123]

Yes I'm at 87 percent that loan would help me get more products in my store I'm still waiting they say it is computer-generated well computer generated I'm still waiting

[Twpchair]

It's trending higher percentage paid back if not fully paid back. One just posted 94% before the offer came in. Good luck to you!

[Twpchair]

The trend is actually a higher percentage paid off if not fully paid off. One just posted 94% paid off and received an offer. Good luck and no it is not just you! If you scroll down through you will see. 

[Burnt1]

I am not sure how many will agree or disagree with me on this one... I came here to read all of the comments to see if there was any change in the lending environment with square. We are on our 2nd loan and 90% paid off. I am torn if I am thankful that I have not gotten another offer or wishing I had another one. I am in a spot not wonder that if I didnt take the loan, would I need a loan offer to help out again. Vs just having the 20% they take in savings for a inventory stock up when needed. I wish everyone the best and agree with all the statments that square is still making offers. They are a massive company and have to evaluate risks at a massive level of risk. If you dont have a new offer by the time you pay off, try setting up auto savings on your account for the amount that you have been paying back as a % and then maybe we might not be as fast to need the loans. If I dont get an offer before this one is paid off, I dont think I will accept one or need one. 20+% doesnt seem like that much until your paying it back on a daily basis. Then its alot and keeps you hoping to get another one in my opinion.  AND trust me, we could use some capital to buy new equipment to fulfill orders that we are taking on to help us expand. Just not sure that its the right move for us anymore to go this route. 

[Minion]

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@Burnt1 wrote:

I am not sure how many will agree or disagree with me on this one... I came here to read all of the comments to see if there was any change in the lending environment with square. We are on our 2nd loan and 90% paid off. I am torn if I am thankful that I have not gotten another offer or wishing I had another one. I am in a spot not wonder that if I didnt take the loan, would I need a loan offer to help out again. Vs just having the 20% they take in savings for a inventory stock up when needed. I wish everyone the best and agree with all the statments that square is still making offers. They are a massive company and have to evaluate risks at a massive level of risk. If you dont have a new offer by the time you pay off, try setting up auto savings on your account for the amount that you have been paying back as a % and then maybe we might not be as fast to need the loans. If I dont get an offer before this one is paid off, I dont think I will accept one or need one. 20+% doesnt seem like that much until your paying it back on a daily basis. Then its alot and keeps you hoping to get another one in my opinion.  AND trust me, we could use some capital to buy new equipment to fulfill orders that we are taking on to help us expand. Just not sure that its the right move for us anymore to go this route. 

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Solid input @Burnt1 .  Perfect solution to take that 15-20% and put it in savings, and see what you have after a month. or a few months.

[Twpchair]

💯 agree! I take offers when I need them and I don't accept every loan.  Especially during our busy time in the summer that adds up fast! I only put 10% away and that adds up fast! The end of the month I go get what supplies I need and still have 10% extra going into the bank. I wish everyone great luck who is waiting for an offer!

[Twpchair]

I think many are starting to weigh this 🤔 right now. I get it I really do. We all have a choice and we should think about it. 

[Willenhallsrvc]

Just thought I’d update everyone I’ve just had an offer today morning come through. At 94% paid off. It’s the same amount as last time though 

[Twpchair]

Congratulations! And thank you for sharing it really does help others!

[coolcoffeecrumb]

Has anyone had all your metrics "good" and not gotten a new offer after being 100% paid? I'm at almost 98% paid and no offer still.  I'm wondering if people aren't getting offers even after 100% paid. 

[mydpins]

I have been 100% paid off since 5/20, just had our busiest weekend of the year thus far doing significantly higher then our avg and still no offer

[Twpchair]

Hello, I was wondering what was going on with you? I see now. Unless I missed one all I have seen or posted here (not all do) one person I believe it was Sunday or Monday reported they received a new offer. The amount was the same as previous loan. His percentage paid off was higher as well. It's really slowed down like last Summer for a couple of months and then kicked right in again. 

[mydpins]

Still been fully paid off for 10+ days, had an awesome weekend and expected to have another this weekend. No offer and trying to figure out what to do next…

[Minion]

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@mydpins wrote:

Still been fully paid off for 10+ days, had an awesome weekend and expected to have another this weekend. No offer and trying to figure out what to do next…

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Hows your business credit?  How is your personal credit?  Any relationships with any large banks or local credit unions? (trying to drum up some alternate ideas for you)

The crappiest thing to say, but I'm going to say it.  Keep rocking out sales!  Even if there is no offer, take 10, 15, 20% of what you made over the weekend,, and fro sales that you make this weekend, and see some of the funds that you would have lost to fees with a Square loan. 

I'm not by any means saying you don't need it , or couldn't use it to purchase more inventory.  I am simply saying that I hope the best for you and you get an offer that you are looking for, but in the mean time just toss some funds away for a rainy day. 

[Twpchair]

This right here! Great support and encouragement! Also, I have a great relationship with my little hometown small credit union! When I walk in, the first thing they say is Hello Tammi! Not, I can see your bank card, account number, and DL. They know me and address me by name, and I love it! I have a revolving line of credit, and once I set up my business account with them 12 years ago and they had all that information on file, I asked me what I was looking for as an amount. About 5 minutes later said yes, we can do that! An hour later, I was done and out of there! Half of that time was them helping me add that revolving line of credit to my mobile app for a 1 click transfer into my checking/debit section. I find myself at least credit unions are a little easier than working with big branch state wide banks. Just imo there. I always wish everyone the best as I'm a huge shop small and shop locally! Big Box makes enough money imo but us mom and pops we depend on our community support and I will pay a little extra because I know how much it means, how hard they work and usually the customer service and product is so much better! You rock it!

[VanKalkerFarms]

even being paid off on a previous loan does not guarantee a new offer will be presented.  

[ohboi]

My 6th loan with square usually get an offer between 60-85%. I’m currently at 96% literally $350 left on a $10,190 loan. Accepted the loan in late February 2024 for context to how fast it was paid. We are rocking. Definitely they have the ability to change the algorithm and it’s not as system generated as they say because if all of us used to get new loan offers like clock work in the past and now we all don’t get offers or have to wait until almost 100% paid off they changed the algorithm! Learn to operate your businesses without dependence on them is my advice.

[VanKalkerFarms]

That is great advice to not depend on the Square loans as they are unpredictable and also can hurt your business financially taking much-needed income to pay back an expensive loan.

[Minion]

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@ohboi wrote:

My 6th loan with square usually get an offer between 60-85%. I’m currently at 96% literally $350 left on a $10,190 loan. Accepted the loan in late February 2024 for context to how fast it was paid. We are rocking. Definitely they have the ability to change the algorithm and it’s not as system generated as they say because if all of us used to get new loan offers like clock work in the past and now we all don’t get offers or have to wait until almost 100% paid off they changed the algorithm! Learn to operate your businesses without dependence on them is my advice.

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Echoing what @VanKalkerFarms  said.  Kudos for being so close to paying it off and solid advice for other sellers.   

[ohboi]

For the first time in my square loan history ,I’ve made it to the end of a loan at 100% paid off. If/when I get another offer I’ll post here. Something is definitely going on.