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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[Mguerrero08]

The first few loans before you could get it into your square account it would go into my business account. Now days I try to faithfully just use square because it really makes things easier with tax time since we are bringing in more money now, it’s just my husband and I, and we have a few technicians. So I deposit checks into my square too. I transfer over money to my business account when I pay myself or if I need to use some of the money. If I get a check over 10K I’ll cash it at my store by my house because they charge 1% or I’ll deposit it into my Chase account, I’ve just gotten fed up with big banks. Square has done amazing for us and all these years square has went down one time and that’s it!!! Never had a issue with a charge coming from a unauthorized person ETC, the loans can be a little frustrating when I need it to come but it always comes when I need it the most, I’m noticing it comes every 3 months and 4 months at MAX!!! I know the stress you’re dealing with!  I do it every time lol! We should create a FB group so we can all talk! I don’t see any for square! 

[TrendzbyM]

You are very helpful with information! Thank you and maybe I'll start using the square checking if it's that easy!

[Mguerrero08]

It definitely is!! My husband has the main card, now I have one and our technicians have one and we just transfer their pay to them on payday, they can’t see our balance or transactions or any of that personal stuff it’s like a checking for them! Soooo cool. The first couple checks I cashed didn’t clear till the next day they say it takes 1-6 days but next day was the first few ones. Now I can deposit anything under $3500 and it clears right away within 5 minutes. $3500-10,000 clears by the next morning so it’s really awesome!

[TrendzbyM]

I just ordered a card and got it all set up. I wish I had done this before accepting the offer today because I wouldn't be waiting for an approval after submitting my  business checking statement. I didn't know how it worked 

[Mguerrero08]

Great!!! You should be able to see your virtual card and if you have a iPhone you can set it up on Apple Pay. Not sure how androids pay works but I’m sure you can add it there too so you can use your square money right away too without transferring it! 

[TrendzbyM]

Yes I added it to my wallet! This might be my new way of banking now so thank you again!

[Mguerrero08]

You are welcome!!! Sleep tight! Keep us updated tomorrow! Try to not stress!! It all works out, it always works out!!

[TrendzbyM]

I'll try , but I'm Not going to lie, even with the reassurance of everyone Im still worried! It's still showing my current loan balance and the new one says we will review in 1 to 3 days. Normally it would pay off the old one even if it's not in my account yet and pending .. 

[Healthyketo]

Hopefully you have good news tomorrow morning. I'm nervous for you to. lol I wish square would just give us all an offer so we can strive and make more money. I'll say a prayer for you. Im almost about to hit 98%,  sales were good today. Hopefully I have good news tomorrow to. 🤗

[TrendzbyM]

Thank you! I need this loan more than I ever have and in all my loans with square it's always been instant approval. I hope you get one tomorrow!

[Ann14]

You should receive something tomorrow morning I’m sure !

[TrendzbyM]

I hope so! I'm so stressed!

[Mguerrero08]

Don’t be!! It’s coming! Get some rest tonight! 

[Ann14]

Me too and I’m sitting at 76% not patiently waiting hopefully I get an offer soon 😅

[TrendzbyM]

I hope you get one tomorrow !

[Ann14]

Thank you 🙌🏼🙏🏽

[Fitnessgirl]

Hey all. I have a question after reading through the thread. How do we know when our account is updated and or the AI has reviewed loan eligibility? Is it the same time for everyone or is there a place to confirm these have been done for the day?

[Twpchair]

Go into your loan part with the green checks on your progress and where it shows saying 78% paid off on the right it will be time stamp last updated yesterday at 2:41 pm or whatever or when it was done. And no I've updated at 1pm to 8pm and no we are all not the same time either. 

[Fitnessgirl]

Thank you for the explanation.

[Mmccrain]

Has anyone’s loan status ever changed to “eligible” rather than in progress before getting a loan offer? 

[Twpchair]

Sorry about that a customer came in. When you look at your past loan has the circle pie graph gone back to zero not whatever was there before like 89% and look at loan history of previous loans and it should say when you previous loans where paid off. Look to see if this last loan is there.