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.

[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.

[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

[Healthyketo]

My last offer was like this once i submitted I called the capital department to make sure they received my items and within the next few minutes i received an approval email. This was back in Aug of 2023

[TrendzbyM]

I'm currently on hold . At least I hope it's with the right department.

[Healthyketo]

For me they wanted bank verification & business documentation. I had never been asked for anything before so that was new for me.  Good luck! I hope you get an approval! 

[TrendzbyM]

And did you get approved after submitting?

[Healthyketo]

Yes once they confirmed they received my items a few minutes after I got an approval email stating the funds will be deposited 

[Mmccrain]

How much were you both offered?

[TrendzbyM]

I was offered 13100