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.

[Kbso11]

Yes, i too am in great standing in the green in all aread and would love to know if i could be doing something more to become eligible again. I’m at about 80% complete currently and always ahead of my minimum due by months everytime 

[Jk2020]

I’m at 81% and nothing as well. I’ve always received one between 50-60%. I been with them since 2020 and sales are good. I always pay off fast. Everything in green. 

[Jerrysbar]

Did you ever get an offer? We're at 82% paid off, all green, and nothing.

[Twpchair]

Honestly, what I have done in the past in a retail furniture store and I could run a flash 3-day sale and kick up not just sales but swiping that card machine all day! I would do Monday -Wed and the weekend is crazy busy all already and boom late Saturday night I had an offer. My % was always in that range of upper 70s to upper 80s but I could add a 15% to 18% increase in a week and imo it triggered the system. That's imo but it has been done multiple times over 12 years. Could be very well at then in the 90s just my lucky pick? All we can do is share our own experiences with every one being different. Good luck!

[Oxbow]

1 dispute in 8 years 3 years ago, all green 85% paid at 7 months no offer frustrated for sure

[Mikelike26]

I have done everything that I was supposed to do on my current loan and I still haven't got a new loan offer I'm at 83% and my loan is paid way down and usually I have gotten I a new loan offer by now

[Minion]

Hi @Mikelike26 

You are on your way to paying git off.  You can check out this thread here for the latest and "trending" so to speak % that to her users are seeing offers at.  Keep processing sales and you'll have that paid off before you know it!

[Stacelyn24]

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.

[kyablonowski]

Hello, I am in the same boat as you. I’ve paid my loan which was $33,000. I’ve paid 77% plus. My sales have been great. I am a small operation and I use these funds every time to grow and sustain during this slower summer months. I’ve been with Square over 10 years. My last loan they offered me a new loan and only 52% or something like that. I thought for sure once I got to 75% on this new one I get a new offer and for some reason, I haven’t seen it yet and it’s very frustrating and disappointing. I hope they come through soon.

[Twpchair]

I know it is frustrating and hard to plan for purchasing or repairs anything else you need to continue to operate and grow. The plus if you can hold tight is that the new offer you will get more and more of as the % goes up! Compared to 52% rolling over half and losing half of your offer you get more and more! Good luck and keep plugging along! I truly wish you the best! Been there done that! I stopped trying to crack the algorithm and followed up with the trends going on. Easier and more reliable.

[Oxbow]

Im at 86% paid, all green, longest Ive ever waited in 8 years

[Twpchair]

12 years and my longest was Aug/September at 91%! That one I took! I hate to roll over a ton of old money that eats into my new loan and I tend to stay away unless it is a dire type of thing. I do have a LOC with my credit union for emergencies as well. But I took the 91% larger increase, the fee was ok, and the rate was pretty good and fast and done. Then out of the blue at 69% no joke here comes the next offer of less money and a higher % 😆 yeah, passed on that one. I process or swipe all day every day from 8.00 dollars to 3-4k transactions being a retail furniture store. But these offers have trended higher all summer September and early October. Recently a good handful of 70s-80s popped up. Now, it's been a little slower. We will see soon if the lenders start picking up and offers start rolling out faster. Good luck!

[Mmccrain]

What percentage was everyone at on their very first loan when they got their second loan offer. I’m seeing 6th+ loan offers but I’m talking about the very first loan percentage when the second offer came in. I’ll be at 60% on my very first loan of ($1600) by the end of today after 35 days of repayment. I’ve had 800% growth and hoping for a new loan offer today.  

[Minion]

Hi @Mmccrain 

From every loan based thread I have seen, and being the first one, looking a when a second offer could come in it honestly seems to trend even higher than people with their 3,4,5 etc loans with offers coming in around the 80%+ offers.  Being only at 60% I wouldn't expect an offer to be in sight for until you reach maybe the 85%+ mark in all honesty. 

Every business is different so its hard to exactly say.  But you could also be one of the few unicorns that an offers gets sent over earlier than the "norm".

.

[Twpchair]

Well, after 12 years you made me go there 😆 and start scrolling! I have to agree with @Minion (like always) the best I could figure out that was different times and we are all different. My first was 1k and paid back quickly also. My 2nd without metrics to help now I would say I was close to 90% give or take a few % points. You're just establishing a relationship with Square and just as important a pattern of your business pattern or activity. At 800% growth that's amazing and I normally see people myself included if I remember correctly it was about 9 months to a year before that I started to receive offers like clockwork between 70-75%. Each again then growing and growing in increasing. Right now things have been different with lenders and they have been holding pretty tight. It was trending for some time now upper 90s to pay off completely! Recently there was a good group of people (longer customers) seeing 70s-80s percentages. Not all of course everyone is different and processes differently. These forums for Square are awesome and so much information and a lot of great people who will help anytime! We truly are the best way to share information or our experiences to help others. Good luck and welcome!

[Mmccrain]

So it appears that a new loan offer can only incorporate 10% of it to cover a previous loan. So a $50,000 loan would allow you to roll only $5,000 into it from a previous loan. 
so these large loans for $50K and up would mean a higher percentage needs to be paid off in order to meet that threshold. If you owe $7000 still on a loan a new offer would have to be over $70,000 to be able to incorporate the $7,000 which is 10% of the new loan. Meaning 90% of the new loan goes to grow your business. A smaller amount owed like $800 means the next loan needs to be over $8,000. This seems to be the metric after studying all the numbers everyone’s posting.

[Minion]

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@Mmccrain wrote:

So it appears that a new loan offer can only incorporate 10% of it to cover a previous loan. So a $50,000 loan would allow you to roll only $5,000 into it from a previous loan. 
so these large loans for $50K and up would mean a higher percentage needs to be paid off in order to meet that threshold. If you owe $7000 still on a loan a new offer would have to be over $70,000 to be able to incorporate the $7,000 which is 10% of the new loan. Meaning 90% of the new loan goes to grow your business. A smaller amount owed like $800 means the next loan needs to be over $8,000. This seems to be the metric after studying all the numbers everyone’s posting.

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I think you could be pretty close to that.  It seems logical, but there are other variations and instances where it seems to be also toward the 85 %.  But this seems to be a a solid piece of information you have come up with from your digging @Mmccrain . Kudos for that. 

In the end though, getting as close to paying off that loan, before accepting another loan is only going to be more beneficial.  

These loans ideally work great for a business also who accept just as much cash and checks as they do CC, extending the loan life to the full 18 month, aligning the fees to a "typical" loan APR of 12% +/-

[TrendzbyM]

I got an offer! 79% today and came in at or before 3pm! It was little more than before so I'm happy!

[Healthyketo]

Congratulations 🎉 I was updated at 1:05pm today and no offer yet 😞 still sitting at 97% hopefully soon! 🙏 happy you finally received one! Pray for the rest of us!

[TrendzbyM]

Thank you! I just realized I edited my address incorrectly so I hope that doesn't delay being approved 

[Mmccrain]

So the “update” time on the website is usually when they process your days payments but the AI analyses the accounts through the day. Mine is checked for loan offer status each night about 9:30pm but the “update” occurs each day about 2:30pm