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 

[Minion]

Congrats! Honestly though Im sure you can use the loan for products etc, but enjoy the full CC sales for the time being.  Even take a a small percentage of the sales until an offer comes and tuck that aside for rainy day in a Square Savings account.

[TrendzbyM]

I'm still waiting at 71% all green too . 

[Hairplaysalon20]

I have had multiple loans through square , reading other posts seems to be waiting longer to offer. Good luck to everyone i will post if i get one 

[TrendzbyM]

I've also had multiple and usually get an offer in the 80s but was hoping for an early one since some people have posted they've gotten early ones .

[Hairplaysalon20]

I just received an offer at 87% it is almost half of previous loan, but I am still grateful to be thriving enough to receive one. Soo many businesses are in jeopardy , hang in there all they at least are still investing in us 

[Twpchair]

Ohhhhhhh, hun I am so happy for you, and I appreciate you hanging here and always helping and keeping people posting! You rock! I am sorry it's lower, but my last 2 bounced to the same or slightly higher. It's tight on lending right now, and with all of us being so unique, some are doing over the top or below or the same. People need to realize they are a business as well and take into consideration weighing the odds. Congratulations ❤️ 

[Healthyketo]

At 95% all on green and good standing. Has anyone gotten an offer after account has been updated for the day? Just curious. 

[Twpchair]

Yes, last week they were posting about every day! The percentage has been trending higher % paid for most (not all) hopefully, Monday they start back up again! Good luck there are a lot waiting! 

[Twpchair]

Yes! My last offer was March after a 3 day sale and extremely busy. Around 2-3pm eastern time I updated and it was a Saturday about 7pm I received an offer. I'm not sure if it was the weekend or just happened to pop up later compared to a weekday. Honestly, I'm on here daily and follow the trends and help keep people encouraged and hold on. I don't usually follow my update time. I pay attention to if I accept an offer and approved my credit union first and then my loan circle of % paid off. If it goes to zero then I know I'm good and watch my bank. My emails are running a bit slower than the system processing it. Maybe it's just me as I use a different mail than Gmail. 

[Hairplaysalon20]

Yes my update came in today at 450 and 7p I had an offer. The update was still not eligible then it changed 

[Mguerrero08]

Ok guys! I got a loan offer feb 13 2024 this year. Of $30,000 im at 66% paid off today and I finally just got another offer of $48,800!!! I hope this helps!  

[VanKalkerFarms]

good to let others know that it is happening, that is a low payback offer compared to a lot of what others are reporting.

[Mguerrero08]

When I got my loan back in Feb I was at 63% paid. Mine are usually between 49-71% I’m now on my 13th loan. The first loan I did however have to pay back to 100% but that same day I did I got an offer. 

[Minion]

congrats @Mguerrero08 . Definitely probably one of the lowest % paid by I've seen as well. 

[Mguerrero08]

pretty exciting! It’s our busiest time of year so I need to stock up! What percent are you at and what’s your year to date in sales? So you do big ticket sales or a bunch of smaller? Ours are typically $139-$2500 and then once or twice a month we will get huge 5-20K jobs. I own a garage door business. 

[Twpchair]

Same here in a long time! 1 other posted. I just scrolled down at 69%, but it's been trending higher if not paid off. Maybe we might see a new trend! It's hard that we are all unique, and how that algorithm works for you might not be the same for me. You need to crack this algorithm, and then we can all be happy and jolly! 😆 🤣 😂 I tend not to take them in our busy season because I really do like that extra 300-500.00 a day I keep! When I start to get nervous in Michigan is hard cold, heavy snow winters. I do have a great line of credit with my credit union and can weigh them out but that's when I love to see an offer come in. I always wish everyone the best of luck and if you waiting I hope tomorrow is your day!

[Mguerrero08]

i usually don’t but i am really trying to expand our company! Yall I’ve been a mess lately reading everyone’s comments and seeing higher % paid back! But yall look out they are coming in! Yall will get one! 

[Mmccrain]

Has anyone seen a second loan offer at 50% paid off? My first loan was only $1800 and in 30 days I’ve paid 50%. Wondering if it’s possible for a second loan offer to come thru at this point.

[Twpchair]

Honestly, anything is possible, but if you scroll down through the thread, it's trending upper 80% to paid off completely! A few posted low 80% one person in months posted 70s, but that's not the majority. I'm just watching the trend on the whole. We're unique and different, so anything is possible, but I wouldn't want to bet money on type thing. Good luck! Please keep us posted it helps others know what % when/if you get an offer. 

[Koleen1234]

Did you ever receive a loan offer 

[TrendzbyM]

I just hit 75% paid off . Hoping to get one before I hit 80% . I've never been offered one higher than 12k. Be nice to have one for higher this time , sales are good !