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]

Good luck to you! Besides 2 people posting 70% or slightly lower it's been a higher % paid off. Wishing you the best and please keep us posted it helps others know what % is trending. 

[MKF3147]

Have you reached out to Square to ask or are you just waiting? I finished paying off a loan a couple of weeks ago and am patiently waiting. Thank you...

[Mmccrain]

I’m down to $900 owed on my first loan (52% paid off) and waiting. I’ve spoken with a square representative after waiting 75 minutes on hold. They said my account is reviewed every night for loan eligibility. My first loan was offered at 10pm the same night all my markers turned green. Everything is still green, sales are up 600% so I’m just waiting to see if I get another offer before it’s paid off. 

[MKF3147]

thank you. I reached out to them and am hoping they will release a loan. thank you for your time. Have a great weekend. 

[Hairplaysalon20]

Thank you , I process over 230,000 but yearly sales were down a little but always green on dashboard.  I’m just thankful  I am a hair salon in a mall which we all know has declined. Good luck to all and keep the faith they are watching our businesses 

[BodyLabPhilly]

Came here to check and see if others were having a similar experience.  Currently at 78% and everything green in the dashboard.   Was hoping to have an offer by now, as my business could really use it as we enter a slower season.   Hoping it comes soon. 

[Twpchair]

Unfortunately, besides a few, the percentage is running higher to pay off. A few are sneaking in the 70s 1. I saw 66%, mostly upper 80s, to paid off. Good luck!

[TrendzbyM]

Hit 77% and crossing my fingers for an offer now after a busy week! 

[Mmccrain]

I’m noticing the second loan is often offered at a lower percentage but it seems like everyone on here is waiting on their 6th+ loan. I’m waiting for a second loan. Paid 53% of my first loan in exactly 30 days. 600% business growth. I’ll keep everyone posted.

realistically tho I think the businesses that have been around for years and are expecting more loans are not getting offers because the loans aren’t offered when the business is stable it seems. Not sure.

[SGarrison]

On my 17th loan now in 5 years and never had a problem paying any of them. Always early and receive another offer around 70%. At 82% right now on a 73k loan and nothing as of yet.

[Gfowler]

I’m on my 4th loan, all markers green 82% paid and no offer. I received offers 60-70% paid on my previous loans. When this loan is paid I’ll probably be switching to Shopify. Their customers seem to be getting better offers sooner. Square has gotten a lot of money from my business but it seems like they aren’t trying to keep my business by continuing to offer working capital consistently.

[Twpchair]

Good luck! Try finding a good site for reviews. I would never tell anyone how to run their business or what's best for them but I reviews I read were very similar as here. Good luck to you and I hope you get an offer soon! 

[Twpchair]

Hopefully something soon! 

[TrendzbyM]

I just looked back at all my previous loans and have gotten offers right about where I'm at now so I'm hoping the same trend happens for a new offer! I've had 16 loans with square. 

[Healthyketo]

97% im desperately praying for an offer soon! I have some events coming up that this summer and an offer could really boast our sales! I’m hopeful! Good luck to all those waiting! Patience is key! 

[Ulmen406]

82% and crazy sales over the last week. Hoping square pulls through soon 🙂

[TrendzbyM]

I was really hoping for an offer over the weekend, but I guess the trend is still going in the 80s. I'm sitting at 78%paid and all green 

[Minion]

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@TrendzbyM wrote:

I was really hoping for an offer over the weekend, but I guess the trend is still going in the 80s. I'm sitting at 78%paid and all green 

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You're almost there though!  Just remember , the less paid off, is the more that they will pull from another offer to satisfy the outstanding one.   Keep knocking it out and hopefully you get an offer for you soon!

[TrendzbyM]

Thank you! I've always had an offer with this amount remaining so I just assumed it would be the same this time as well. Also hoping to get an offer little higher since my offers  are always the same amount 

[Minion]

Your definitely headed in the right direction for sure though, seeming to at least be at that "average" starting point for potential offers to start coming in.  Keep at it, hopeful for the best. 

[Ann14]

I’m sitting at 75 and patiently waiting.this is my 4th loan for 52,000 ..hoping for an offer soon since I’m moving to a new location