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 

[Twpchair]

You can but here is the downside. 1 it takes 7-10 business days to process and clear their system regardless if they take your payment today. 2. From that point it takes about 10-14 business days for you to go back into the algorithm to process all over again. If you are processing that much you would probably get an offer (no guarantee at all) but the odds are in favor. If I prepay I do it around 40-50% I don’t pay it completely off but get it to around 70-80% that way I get caught in the process of step 1. And step 2 has been iffy for me depending upon how much I paid off during that time period just regular processing. I’m retail furniture and right now our processing is crazy! One week all cards the next week all cash or checks? It’s been like this for about a year. Prior to it was 85/90% cards always. You know what is best for you but I wanted you to know that if you make a payment today and money is gone tonight or tomorrow there are wait times on both and you go back into the algorithm. Paying it off or portions is awesome but timing is everything. Good luck!

[marielmt]

Hi @Parisbarnes!

We appreciate you taking the time to post.

You are able to make additional payments toward your Square loan.  Once a payment has been submitted, it can take up to ten business days for payment confirmation and for your business to be re-evaluated for a new offer. 

We can’t guarantee that you’ll receive a new offer after you make an additional payment or pay off your loan, but if you become eligible, you’ll be notified directly in your Square Dashboard and by email. 

Don’t hesitate to contact us directly if you have further questions or concerns.

[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

[Healthyketo]

Thank you that is good to know! 🙂

[TrendzbyM]

I submitted the statement an hour ago and haven't heard back. I'm panicking cause I'm used to an approval right away! It has never taken this long 

[Mmccrain]

Did they offer you a loan or simply need bank verification? 

[TrendzbyM]

Offered me a loan. Then another email asking for bank statement . 

[Mmccrain]

Congratulations! They’re probably just making sure the loan is needed? Not sure

[TrendzbyM]

I don't see how they can look into our accounts and determine that; I just thought it's to verify it's my business bank account 

[TrendzbyM]

They just emailed asking for bank verification and a statement . Has that happened to anyone ?

[Mmccrain]

If you connected your bank account then it makes sense. Or they are analyzing if you need the funds.

[TrendzbyM]

I'm not sure if I connected this one at the time or a different one. Not sure how to even find where the connected accounts to the loan are?

[TrendzbyM]

I just read the fine print and it says it needs to verify ownership of the bank  account with my name and my account number . So it's probably just to verify it's legit . 

[Mmccrain]

The makes sense. 

[TrendzbyM]

Been on hold over 30 minutes . Not sure if I'll get through to anyone 

[Mmccrain]

Usually 60-90 mins before someone answers