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.

[Healthyketo]

The last offer was 14,300 in Aug 2023 a lot lower than what was previously offered to me before.  Had a restaurant/ bakery but since closed the doors and went to online orders only which has recently started doing very well and now I’m at 97% paid off on this one and praying an offer comes through soon. 

[TrendzbyM]

I finally  got through on the phone and she said they did receive it . Takes 1 to 3 business days . And I had emailed the other day and finally got a response so I asked them as well. He said the same thing . 

[TrendzbyM]

What additional information did they need from you?

[Mmccrain]

They didn’t need any when u got my first loan. I’ve never gotten another loan. Yet. Sitting at 58.5% paid off on first loan that was only $1908 (including the fee) so I am praying I’m offered one soon! Just had amazing growth and could use it!!

[TrendzbyM]

No approval yet so  calling didn't work for me 😂

[Mmccrain]

It wouldn’t be connected to the loan but connected to your square dashboard.

[TrendzbyM]

Doesn't everyone have to connect their bank accounts to receive their money? I remember using the plaid platform and connecting mine last year . Which I had a different bank then. And sometimes I switch depositing to my personal and business. Getting little nervous because it's never taken this long to get an approval, it's usually within minutes . 

[Mmccrain]

I never connected my bank. I just use Square for banking for receiving all my payments. It asks to connect an account using plaid, but I never have

[TrendzbyM]

Has anybody had to wait 1 to 3 days after submitting additional information? Offer was around 3, submitted additional by 345 and still no approval email.. I'm getting nervous even though they say 1 to 3 days.

[Mguerrero08]

To answer your question… A few loans ago I had to submit a few pieces of information. It did go into my account right away between 3-4 hours. However that was like 2019-2022 I’m not sure when. I do know that I got my loan offer last Monday and I’m used to it going into my account within 30 minutes and it didn’t go into my account till the next day (last Tuesday) after it updated for that day which was around 5pm ish. It will come!!  Most likely tomorrow afternoon. 

[TrendzbyM]

But you got approval email and one that said money is on the way? Cause I haven't yet... and my dashboard shows old loan and new loan is pending application. 

[Mguerrero08]

i didnt and that was so weird to me so I thought something was wrong! But I wasn’t feeling good so I ended up going to sleep like a hour after I did the loan application & all that. I got the email the next day and I checked my square account and the money was in there. It was a really strange thing, another buddy of mine who recently switched to square last year after my finally talking him into got his first & second loan already the first one went it fast then the second took the entire 3 days and he didn’t even get the approval email the second loan the money just came in on the 3rd day! 

[TrendzbyM]

Thank you for this information! I might sleep better knowing it's happened to others now . 

[TrendzbyM]

I don't use the square checking  account, I use my business checking . Which is the statement they requested to verify. Next time I'll use the square checking so I don't have to wait.

[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!!