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 · 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 

[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%.

[TrendzbyM]

I linked mine awhile ago, but my offers still come around 80% and the amounts are always the same so I don't think linking it changed anything.

[Twpchair]

I don't have my connected to my account. I personally haven't seen 1 person say "wow my offer doubled" by doing it. As far as the 2nd question many report that the offer went down not up. I might have 1 or 2 in years that got a slightly better offer most go down. Just myself only if I don't need it I don't take it! If I do I don't hesitate or try to wait and play games because I see the trends. Good luck to you! If June is better put that 20% aside and that's probably close to your loan offer that keeps going down! Good luck to you!

[BIGK]

The message that usually comes with the “Link your bank account” pop up, says that linking your bank account will not affect your loan. I don’t know how true that is but I linked mine on my last loan and it was still double the amount of the previous one. That’s just my experience though.

[Twpchair]

Thank you! That's good to know! I haven't seen too many post that! But not everyone does post hear. So good feedback is awesome! Thanks for the update!

[Jjpainting]

I linked mine last year. The loan offer I received last November 28th came when my previous loan was 66% paid off and the offer was almost double.  Can’t say if linking my bank account had anything to do with it. I think it was double more so because that was the point where I just passed my one year anniversary with square and my sales were drastically increasing on a monthly basis and they then had a full outlook of my sales for an entire year to see which months are my slower times of year and so forth. That was my fourth loan offer which was $14,700, with the prior one being around $8200. I’m 75% paid off on my fourth loan and hoping to get an offer of $20k soon being that my yearly processing sales are up to just over $150k

[Twpchair]

When you're sales are constantly going up and up and your processing volume keeps going up that helps! I know a good mixture of new and returning customers are good too! That means you have a great group of regulars and you are getting more and more new ones is another sign of growth and a healthy business. Great job!

[arkansasantique]

Im in good standing all the way through and at 80% and still no offer

[Mguerrero08]

If you don’t mind me asking what are you sales starting from Jan 1st this year?

[Twpchair]

They've been rolling out this week! A few lower % paid back but most are in the higher percentage paid back to completely paid off. Good luck and hopefully one will come soon!

[BIGK]

I never received an approval email this morning so I went ahead and reached out to my Square Account Liaison to see what was going on. She then reached out to the internal loan processing department and coincidentally I got the approval email and the funds within 30 minutes… I only reach out to her when I have issues or concerns and she always comes thru! I don’t know if she actually “did” anything but it was just insanely coincidental! 🤔

[blueberrymae123]

Nice that you have someone to reach out to. Any time I've ever reached out to anyone they just say sorry it's all automated and wrme have no way of helping. Seriously that's so frustrating 

[TrendzbyM]

Glad it got approved! I'm waiting patiently for my offer to come early ! 

[Twpchair]

I had my funds a day before my email I believe I told you before I watch my bank account first. Glad you got your funds. Not just or directed towards you honestly, but things are running different and it's been trending that way for a year. The good Ole days of 60/70% aren't happening neither is the rate or speed of loan signing and funds for most. 3/4 yrs ago offer came in and 10/15 minutes later approved usually the next day or that night depending on the time of it that night. I know people get nervous or think there is an issue but I'm on here everyday helping and I see the trends and timing. So happy for you and congrats again!

[Hairplaysalon20]

Anyone received an offer I am at 86% and all green but no offer 

[Twpchair]

Yes, last week there was quite a few posted they received an offer. Right around your percentage or higher. A couple were in their upper 70s paid off but most are trending higher right now. Good luck to you!

[coolcoffeecrumb]

I am 5 days paid off 100%, all metrics have always been "good" and still no offer.  This was my 5th loan with them.

[Twpchair]

You are with the majority honestly. Following the trends is upper 80s to paid off. A few here and there are posting upper 60s or 70% but not many at all. Good luck hopefully it will come soon if not enjoy that extra cash in the bank.