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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[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! 🤞🏽

[CryoNL]

@TrendzbyM We've been 2+ years now without another loan offer. We switched our processor for our new office and got a loan offer with them within the first two weeks! We're looking forward to switching this office off of Square as well to a company that actually values the $10's of thousands in processing fees they make off us annually. 

We've also convinced a few friends to switch from Square and they got new offers too. Square is a dying company until they become transparent on their loan system and actually help the customers that keep their lights on. Best of luck guys. You'll eventually switch too. 

[BIGK]

I completely understand where you are coming from. I have a few colleagues that have already switched, maybe when our 2nd or 3rd location open I will see what else other processors have to offer. 

[blueberrymae123]

So... curious if anyone has had better loan offers by actually linking their bank accounts? I had an offer a few weeks ago at 96% for 30K which was higher than my last, which was WAY lower than previous. I didnt take it right away because I had just paid off the one and was debating if I REALLY needed to take the offer right now or not. But then a week later it dropped 5k and went to an offer of 25k! Then another week passed and I hadn't accepted and it dropped to 22.5K! Now mind you I have a shop that does DAILY credit card sales. My sales for April and May were basically the same...and June is off to an even better start. So I'm just so confused as to why my offer dropped like that and I'm also worried that if I don't take it, it will go down again? But I know soon I will definitely need it...I was just trying to wait a little while and see ALL of my money go into my accounts for a change lol...and think on it a bit.

[VanKalkerFarms]

As to your first point, there is only anecdotal evidence that says yes from others saying it, but that is not an official yes.

And I 100% stand behind your last comment, wait and let you start keeping all that money to pay your other bills until it is impossible without a loan.  That makes a huge difference "keeping" all your daily sales vs 80%.