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New Square Loan in 2024

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!

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Square Champion

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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.

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Square Champion

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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.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
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Click here to see a list of third-party apps I use to add functionality to my Square account!

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Square Champion

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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.

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
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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.

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.

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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 .. 

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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. 🤗

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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!

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You should receive something tomorrow morning I’m sure !

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I hope so! I'm so stressed!

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

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

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I hope you get one tomorrow !

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Thank you 🙌🏼🙏🏽

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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?

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Square Champion

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. 

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
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Thank you for the explanation.

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

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Square Champion

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.

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
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I’ve only had one loan and I’m currently paying it off. Just wondering if the “in progress” changes before another offer comes in?

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I don't think so. I think you will need to be closer to 80% paid off to get a new offer .

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Still no approval this morning! Busy day at work so going to try and stay positive and hope it approves today ! 

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Still nothing yet.. I'm getting so nervous ! 

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Happy to report after calling and emailing again today , I got an email at 530 saying my money is on the Way! Thanks everyone for the positive vibes! It did work out !

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Yay! Congrats! Still no offer for me today yet. 😞 hopefully soon 🙏 

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I hope you get one soon!

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