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.

[Minion]

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@ohboi wrote:

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. 

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Congrats! I

[VanKalkerFarms]

now that you're out from under the pressure of paying back a loan, take 5% of your sales (a quarter of what was being taken to pay back the loan) and put it into a savings account each night so that it is there to hit instead of hitting another not free loan.  Do your best to stay out of getting more loans and you can start building that business up so much faster when you get to keep the money at the end.

Congrats on getting it paid off.

[Twpchair]

Hello, can you send me a private message in super sellers, please! Thank you 😊 

[Twpchair]

Thank you, I have been waiting to see if or when you get an offer! Good luck!

[DieselMaster]

Ive now paid off 77% of a $22,900 dollar loan. In the past its offered me loans when I was only 60% paid off. Theres no set amount and alot of factors go into getting a new loan the best thing to do is just keep proccessing. 

[Twpchair]

Yes, unfortunately, the percentage is trending higher if not paid off. All you can do is keep plugging away! Good luck!

[Luckyme1]

Just wanted to update everyone in case it’s helpful… 87% paid off on 30k loan. Just received an offer for 10k less. Trying to refrain from accepting it. 😬

[Twpchair]

Congratulations! Thank you for the update! And honestly how you run your business or your needs that's all on you really. I'm sorry it's lower but it's been trending lower or the same as the last loan! I just appreciate you posting and keeping everyone informed! It really does help. You can scroll down and read and maybe that might help you make your decision. Good luck regardless of what you choose!

[vainstudioyqr]

I’ve been following this post for a while now, I’m at 90% on a $10k loan. My husband who also uses Square and processes far less than me just received an offer (lower than his last) at 82%. Still nothing for me. Very frustrating as I use their platform to process much more than his and have all green metrics, and have paid off my loan faster than him. But just to give some people in the 80%’s some hope. Hopefully we get some more transparency soon.

[Twpchair]

Congratulations to your husband! I know it's frustrating and hard to figure out! That's the million dollar question for sure! Thank you,  for posting it really does help others that are waiting and wondering also. 

[DieselMaster]

Just wanted to update everyone I recieved an offer today at %77 paid off The new offer is slightly Higher than my last  Good luck everyone and may all your businesses prosper

[Twpchair]

Congratulations! That's about 6 people posting now this week! Looks like things are rolling along (fingers crossed) don't want to jinx anything! 

[JMIL2024]

Since December 1, we’ve paid off loans of $1,350, $3,500, $7,500, and $10,500. Still no loan offer after paying off $10,500 last week. Paid that off in 60 days. I thought for sure we’d get an offer. 

[ohboi]

Same! Paid off 100% and nothing 

[JMIL2024]

Those loan amounts are not including fees we paid as well. We basically paid off $25K in 6 months time. That’s a brand new car paid in full!! Where’s our next loan offer?? Clearly you’re making money off us. 

[VanKalkerFarms]

sounds like you are really doing some good business to get your loan paid off in 6 months.  Try your best to just keep on selling and processing and not take out another loan as that will help you keep even more of your profit.  I understand at times you have to in order to keep going.

[Twpchair]

This right here! He is banging it! Keep up the great job and great work and let it roll! 

[coolcoffeecrumb]

Have you gotten an offer yet?

[hotpot1]

Not yet and had a busy last week and weekend. Going on a couple weeks now fully paid off. Never happened before. 

[coolcoffeecrumb]

Have you gotten an offer yet, if not how long ago did you pay your loan off?

[hotpot1]

Not yet 100% paid off too