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.

[mydpins]

Just hit 100% yesterday on our $70k loan. This is our 18th loan with Square and have been with them for almost 10years. Still no offer, so have begun to look at other options for my business. I use to process through costco at cheaper rates by far but no loans. The loans is what convinced me to switch. 

[Twpchair]

Still nothing? Ughhhhh, it's been pretty slow for a couple of weeks with anyone posting they received one. I know not everyone post here or comment but it does help others see the trend. 

[ewing1]

Just hit 80% and everything is saying my trend is down. It's not down at all. Complete opposite. I'm processing more than I ever have before. 

[ohboi]

I knew I wasn’t tripping lol!!! Im on my 8th loan with square, in the early days I would get a new offer around 60-70% and always paid off the entire loan or can in 3-4 months. They were giving me higher loan amounts until last year when they started to give me smaller loans ok whatever. I’m at 91% and it says my weekly sales “need work” I’m like whaaaaaat this comes out of nowhere aaaaaaaand we are busier than ever with credit card sales, square online sales. Naw they just need to be honest with us and say, “Square loan customers, we ain’t got it right now”!!! Lol

[Twpchair]

It's been trending a higher % paid back to completely paid off for the majority (not all) March I was 81/84% paid off before new offer. Last June 91% paid off. Offer was slightly higher roughly 1-2k more? They are still lending but with the pos businesses the ones that offer loans their customers are saying the same thing. Looks like they are all tighten up pocketbook for a minute and see how things are going. Good luck! 

[ohboi]

Yes we use both POS in combination with our online website which all goes towards paying off the loan.

[Twpchair]

Yeah, hopefully things start getting back on track! We had our best winter and business has been crazy which is good but if they are watching the market, or economy in certain areas and states some are better than others right now. Big box chains closing stores. I'm sure there's way more going on behind the scenes. Unfortunately,  people get use to a certain rhythm and then suddenly it changes it throws you off the norm you're use to. Hopefully, you will get an offer soon! 

[ewing1]

My dashboard where it says loan eligibility hasn't updated since Monday! So..... We know they aren't looking every day. I made a huge loan payment yesterday and it's saying I haven't processed enough. YEAH---- ok!!! 

[Twpchair]

That's interesting 🤔 I'm not trying to be smart. I look at mine every Sunday when I do my weekly round up of numbers and inventory and orders is all. I don't check it daily is all. That's why I said that interesting to hear yours hasn't updated since Monday and we now almost done with Wednesday depending on where you are. How would someone who does daily totals or anything else be able to keep accurate track of the loan section if wasn't updating daily? By that if an area needs work and you are focused on bringing that up and you are by your numbers but on their it doesn't reflect? That makes it 10x harder to get those numbers up. Same thing if you were all green but had 3 slow days and you as the owner knows that but it's not reflected on your screen. Maybe this whole needs work information things need to be addressed or updated differently 🤔 we got by without for 11 years for me. I like it personally but if it's not giving you accurate or updated information that's not good either. Hopefully something shakes loose soon for everyone waiting! 

[Twpchair]

You're not the only one it seems? I haven't received an email or text reporting any issues? I know prior to my last loan offer in March it seemed off but then I had 3 busy busy days in a row and then an offer popped up. For some reason and maybe it's just me over thinking but it's like a week behind? If I take in a bunch of cash or checks one week and a few cards per day. That week all green? Then the next week solid cards all day I'm down? I'm retail furniture store and it's hard to determine how customers are paying anymore? I see people on here daily asking about the needs works and it was busiest week of the year type thing. Good luck if you are waiting on loan!

[magnificent4lem]

Very discouraging as a business owner to have no transparency with the loans department. Also very disappointing that we paid All our loans off way ahead of time and now in 2024 it seems as the loan offers have slowed down completely. It’s like square is just taking everyone’s money and not looking to help their businesses grow very discouraging!!!!

[magnificent4lem]

It’s still very dissatisfying that we process with square for years and also rely on the extra capital to grow our business with inventory and new equipment every year around this time. Unfortunately we have been counting on the square loans for the last few years during this time because it really helped us grow our business with weddings Proms graduations and etc.. in our salon. We counted on square because we process with them and knew we could budget this into our monthly/yearly revenue. But now I’m being at 89% paid off and not receiving any new offers or transparency on how to receive a new offer is very discouraging. We have paid off all of our loans in full way ahead of time and never had any issues or problems. Being a business owner and relying on capital is very discouraging when you’re being told to just wait without any information on what could be holding your new loan offer up or even on how to better our business to receive a new loan, even though all about checks are in green. In conclusion is just very dissatisfying and discouraging as a business owner when you process with the company because of one of the factors they were offering square loans as capital and then you don’t receive a new offer, after doing good business on our end and just be told we have to wait 

[Minion]

---

@magnificent4lem wrote:

It’s still very dissatisfying that we process with square for years and also rely on the extra capital to grow our business with inventory and new equipment every year around this time. Unfortunately we have been counting on the square loans for the last few years during this time because it really helped us grow our business with weddings Proms graduations and etc.. in our salon. We counted on square because we process with them and knew we could budget this into our monthly/yearly revenue. But now I’m being at 89% paid off and not receiving any new offers or transparency on how to receive a new offer is very discouraging. We have paid off all of our loans in full way ahead of time and never had any issues or problems. Being a business owner and relying on capital is very discouraging when you’re being told to just wait without any information on what could be holding your new loan offer up or even on how to better our business to receive a new loan, even though all about checks are in green. In conclusion is just very dissatisfying and discouraging as a business owner when you process with the company because of one of the factors they were offering square loans as capital and then you don’t receive a new offer, after doing good business on our end and just be told we have to wait 

---

Definitely feel what you just said there.  Many business owners feel that same way. While there are some positive things about Square Cpatial that makes it easy (No Credit Hard Pull, Minimal documents, repayment ease) are really probably only the 3 main ones.  You never actually  "build a relationship" that many think you do.  I'm not sure if that will ever change in the future or if it is even humanly possible to with the amount of users who take out loans like @VanKalkerFarms  pointed out. 

Curious though, who is your business banking with?  Have you looked into like a business line of credit (LOC) by chance?  I have one with Chase, and I just got my foot in the door recently with PNC as well.  But they have some decent terms.   While I know the thought of a brick and mortar bank isn't appealing to some, you can however actually go in and speak to their loan officer and build a solid reputation with them which may in turn be more or just as favorable in the long run as Square Capital.

[VanKalkerFarms]

@Minion Going to a bank is always my answer to these types of questions about getting more and more square loans.  I personally do not think they are good for the business as it is not cheap and it takes the most necessary thing of 20% of your cc sales which is key to getting by if you are struggling. I think It is not the best to take out especially if you are going on Loan 3, 4, 6, 10, 15 you would 100% be better off getting a LOC the savings would be dramatic, and you wouldn't be waiting to see when an offer comes as it is always there.

[Minion]

---

@VanKalkerFarms wrote:

@Minion Going to a bank is always my answer to these types of questions about getting more and more square loans.  I personally do not think they are good for the business as it is not cheap and it takes the most necessary thing of 20% of your cc sales which is key to getting by if you are struggling. I think It is not the best to take out especially if you are going on Loan 3, 4, 6, 10, 15 you would 100% be better off getting a LOC the savings would be dramatic, and you wouldn't be waiting to see when an offer comes as it is always there.

---

Exactly @VanKalkerFarms !  It took me a hot minute to get in with Chase (closest one to me is the next state over in VT , 2 hr drive). But they have been good to me so far so I'm not complaining.

I will say, Squares loans *can* be good for someone just starting out, ONLY for the simple fact of the minimal (if any) documentation, lack of business credit, poor personal credit etc. 

I'm talking a loan under $4k.  Get it, use, plan a way to make up the fees associated with it, and then be done with it and don't wait for another one.  

I did come across an article on Reddit a few weeks back about someone speaking of some working capital loans (non square) and he broke it down into an APR, since its not "technically" an APR. but it ended up being like 124% or something.  I mean to share it with ya and it slipped my mind. 

[Twpchair]

Any news yet? 

[magnificent4lem]

Nothing new 88% paid,  but I did receive another email so Our business is just waiting for……. 

Thank you for contacting us. I'm Jules and I am reaching out to you on behalf of the Square Loans Team.

It’s important to everyone that lending through Square Banking is done responsibly. We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth.

To help ensure you get an offer that’s just right for your business, Square Banking reviews accounts on an ongoing basis. There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole. The formula balances different factors of your business that may positively and negatively affect your business’s eligibility for an offer.

Please know that Square Banking is committed to helping your business succeed, but we understand that you may need to seek financing outside of Square Banking for immediate needs. If you are considering other options for a business loan, please review our 4 Things to Consider When Evaluating a Loan Offer in our Town Square Blog.

We will continue to monitor your account and notify you if your business becomes eligible for a Square Loan offer.

You can also review your loan eligibility page by going to the Loans tab on your Square Dashboard. This page was built to help our sellers gain insight into the status of their Square Loans eligibility by taking your business’s real time data and comparing it to key factors that determine eligibility. If any of your eligibility factors need work, you can look at the tips we provide to strengthen your chances of becoming eligible.

Please note that there are many factors that may affect your eligibility, and accounts are evaluated as a whole. Do not rely on the information we provide in the Square Loan eligibility page to predict a loan offer. We cannot promise a loan offer, even where all of the factors on the eligibility page are “Good.” If you become eligible, you’ll be notified directly on your Square Dashboard and via email. Find out more about Square Loan eligibility in our Support Center.

We hope you find this information useful and welcome any feedback you may have.

Sincerely,
Jules
The Square Loans Team

This is a service email from Square Financial Services, Inc., a wholly owned subsidiary of Block, Inc. All loans are issued by Square Financial Services, Inc, a Utah-Chartered Industrial Bank, Member FDIC.

[mydpins]

Still no offer, and just had our busiest weekend so far this year, 35% higher then our avg… I have 2 more busy weeks coming up and if nothing by then I will take my processing elsewhere to get the cheaper rates. Have also started to look for traditional loans/funding as my busy season is fast approaching.  I use the loan typically to buy extra inventory.

[Trainerjs]

We have paid down 78% of our current loan and all of our analytics are great but haven't received an offer for another loan yet. Anyone else having the same issues? 

[_Violet]

Hi @Trainerjs - 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 Sellers have discussed this topic. Here, you will find posts regarding other Seller's experience with Loan offers.

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.

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

[Twpchair]

You are my hero and go to gal! You rock and I hate to tag you all the time or poor Pete but you always help. You are a pure sweet soul for me to pass on information.