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 · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[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

[arxssa]

i’m 57% paid off but received another loan offer last week.  i didn’t move fast enough & now it’s not available but they are still giving them out. 

[VanKalkerFarms]

That is super interesting. 

[Twpchair]

First one I've seen that low in long time! It's moving and people are posting offers are rolling out last week and this weekend a lot. All high % 1 paid off completely. Myself personally,  I prefer if I take the offer I want all my offer or at least 95% paid off type thing. I don't want 25-40% going to an old loan. Unfortunately, everyone or their situations might be different! If I didn't have my line of credit I would be lost or in a few tight spots. Hot water heater went out and 2 days later the furnace! SMH. But, I have a great relationship with my Credit Union and 8.75% I won't complain but dang a double wamma! This was a few years ago!

[Twpchair]

Yes, I've seen about 7 now this week! Yours the lowest % in a long time! I'm sorry you missed out if you needed it. I'm not sure what the real time it stays up as it seems to be different for people. I had one but it was a late night Friday and stayed till Monday night and then gone. I didn't want it or needed it then. I've also received them late Saturday night and accept it and Monday before deposit. So I'm guessing weekends compared to week days move different. I know once it's gone back to the algorithm you go! I've seen many call on the offer disappeared before they could hit it and wanted it and no luck. One nice thing when it comes back and you will have a lot more paid off! 

[MimiSuzy]

Anyone gotten a new loan offer recently? Do you know what percentage you were at?

[TheRealChipA]

Hi @MimiSuzy.  I got one about a month ago.  And I know a few others who have received them as well.  I was right around 85-90% as I recall. I’ve since gotten a new offer that was slightly higher.  I’m not sure that I’m a good representative of the seller community as a whole, however.  Currently this year my sales are up year-over-year by over 30%.  And for the past month I’ve been setting sales records every week.  So my account is showing unprecedented card sales volume.  

The persistent trend for the last year has been new offers hitting around the 90-95% range with more than a few not getting new offers until after they paid off the existing loans.  It seems that might been loosening up a little now which would be awesome all around. 

Best of luck!

[DieselMaster]

I got a loan offer on Saturday at 77% I accepted it but Im still waiting for it to be approved

[Twpchair]

My last offer was late Saturday nothing moved and no notifications but I watch my credit union daily and it was there. The ACH and that on the weekend doesn't move! Some are Tues morning depending on your bank. 

[Twpchair]

They are really posting this past week! Looks like offers are flowing or people are reporting here. Not everyone does so it makes it hard. It's been trending higher % rate paid off or completely paid off. My last one was 91% there are a few in the 80s this week and 1 that missed it I believe upper 60s or low 70s and that's a first in a long time honestly.  Keep watching here and your loan everyday! If you don't jump on it fast it disappears and you go into the algorithm again! Keep plugging along things are moving again! Good luck!

[Twpchair]

The % paid back is trending higher to paid off for most (not all) they are still lending a few jump on this week and last week a lot more. Good luck. My last one was 81/84%, and prior to that, 91% paid off 

[Fostersmommy]

My processing volume went from “needs work” to showing “good”. I’m wondering how much longer until a loan might be offered.

[Minion]

Hi @Fostersmommy 

Based off the number of threads I have read over when it comes to loans, there is no "magic number" when it comes to these types of loans and eligibility.  It could be within your next few sales, or it could be a week after the loan has been completely paid off. 

Positive news seems to be that you are on the right track since part of your status changed from needs work to good. Looking at the glass half full here, the more that you pay off the less that will be rolled over and taken from any potential new offer.

Best wishes with your business.

[BIGK]

Just received another offer at 71% and this one was almost $20k higher! I submitted the application last night around 7pm but haven’t heard anything back yet. I usually get approval and funds within 30 minutes but not this time. I hope that isn’t a bad thing! 

Has anyone had to wait a while before?

[Twpchair]

Congratulations!!! Thank you so much for posting and yes my last one was a Saturday and I know it's slower on the weekends but no don't stress by tomorrow the trend of 20-30 minutes is a day now ! Thank you so much for letting us know and please 🙏 keep us posted as it helps others!

[TrendzbyM]

That's so great!  I just hit 70% today and hoping for an early one as well!

[Twpchair]

Just hold on hun , it's taking a day depending on the time! Watch your loan  part more than email okay! Congratulations 

[Twpchair]

Yes! Once on Thursday and the other was late Saturday. Each one hit my bank account before I got a message from Square. I watched my old loan, and once it hit or went to zero, I knew it was fine! Monday-Wed seems like 10-15 minutes and boom done. 

[BIGK]

Thank you! I hope we all get some good news soon! 🤞🏽