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.

[Twpchair]

Besides a handful of people reporting 70/80% paid back, it's trending higher % paid back to you will see many completely paid off. Unfortunately, all you can do is keep processing and watch you're loan section for an offer. Hopefully it will come soon! Good luck and keep us posted!

[ayazbey01]

When will the 84 percent paid loan receive a new offer?

[RobynR]

Hey @ayazbey01,

Thanks for reaching out to the Community.

Offers are not guaranteed, and we are unable to predict when your business may receive another offer.

You can check your business’s eligibility by going to the Loans tab of your Square Dashboard and keeping an eye on your email inbox.

Learn more here.

[7Towing]

I’ve been paid off my second loan for about a week going on 2 and metrics shows green and processing about 20k monthly anybody can give me any idea why i haven’t received my 3rd loan yet?

[Katie_SQ]

Hello, @7Towing. 👋 Thank you for reaching out!

I understand it can be frustrating waiting for a loan offer, especially after just recently paying off another loan.

Currently, we can’t predict if or when your business will be eligible for another Square Loan. However, we will continue to monitor your account for eligibility. Offers are based on various factors, including, but not limited to, your current payment processing volume, customer mix, and Square account history. Even if your business meets one or more criteria, it may still be ineligible if it does not fulfill other requirements.

If your business becomes eligible for a loan, we’ll notify you through the Square Dashboard and via email. To learn more about Square Loans eligibility, visit our Support Center.

Please let us know if you have any other questions.

[kyablonowski]

Hello Katie,

Thank you for the answer, but with all due respect, these are the generic kind of answers that we all get frustrated with. Can you clarify what you mean by " may still be ineligible if it does not fulfill other requirements."

I am a longtime Square customer and Ive relied on Square loans throughout my membership to the platform. Ive grown every year and last loan was given to me when the previous loan was less than 60% paid. Now Im at 77% paid on a 33K loan and paid that back in less than 7 months. I would grately appreciate a new loan offer as well : ).  Kind regards!

[RobynR]

Hey @kyablonowski,

"May still be ineligible if it does not fulfill other requirements" could me a variety of different things depending on the business.

Some common other requirements could be the following:

Payment Dispute

Multiple Square accounts

Failed debits

Prior loan applications

Account reviews

Reserves

Payment limits

You can find more information on the Square Loan Eligibility FAQ here. 

Note: Offers are not guaranteed and we are unable to predict when your business may receive another offer. Loan offer details, as well as the timing of eligibility, may differ from your current Square loan.

[Cecemora101]

Hello - checking to see if anybody is in the same boat as me. I have paid in full 2 loans in full and all my metrics are green, does square just stop giving you loans even though there seems to be nothing wrong with my business sales or metrics. Does square help get you another loan or this just an unexpected invitation? I have had my 2nd loan paid off for two weeks now and no new offer or any offer. Does anyone else experience this ? Unfortunately when I call I get the same response so seeing what others are going through. 

[Twpchair]

Square does give out loans daily! They use an algorithm that checkes your account daily and see if all your metrics are good. Other considerations are charge backs, returns, disputes etc. Sales are good and a good mix of new and returning customers ect. You don't apply or invitation it's their computers algorithm that picks it off. That's why it is so random and people try watch how it's trending. Right now it's a higher percentage paid back or like you paid off. Hold tight and keep processing! Good luck!

[Cecemora101]

Thank you for the information, hopefully good luck happens! 🙂 

[Jjpainting]

I’m on my 4th loan. My second came when my first was 100% paid (made sense to me). My third loan came at 80% paid off of my second and this past one came at 66% of my third. I’m at 79% and patiently waiting.  

you mentioned things squares algorithm looks at, one being returns.   I’m a residential painter and have had two returns (cancelled jobs so I refunded deposit).  Have never had one prior to these two. I’ve never read anything about a return affecting a loan offer. Do you have any other info about returns and how they play a role in offers?

[Mansellmc]

What else needs to be done to get a new renewal offer? I'm in green across the board. Sales are up by double than last year. I have been with Square for going on 11 years. No charge backs, no disputes. I am at 76%. Last offer came in at 67%. I have additions I need to add to my growing business that will increase cash flow preferably before Thanksgiving (that isn't happening) and now hopefully before Christmas. Aside from the holidays, I need this to be done before it gets too cold here in my area. If I send a message, it's the same script from whoever responds. Then I get a feedback request as to how my issue was handled by the rep. The responses are EXACTLY the same from all of them. No personality coming thru in the least. I'm sorry, but the whole "we don't have a manual way of approving the loans" is not believable. Every computer system has a way around. Our businesses are more than just a number in a computer. And what about the Plaid connect to a business bank account? My bank doesn't allow Plaid due to security protocol. This Plaid connect is to help Square see more into a business deposit history aside from credit card sales. Like cash and checks. So, while they can connect with some merchant's banks they cannot connect to others. This isn't exactly fair. There should be a way for everyone to have the same opportunity as those who can connect using Plaid. 

I've been a good Square customer. I use Square Payroll and try to use the savings. Which currently I have with drawled to help finance my project that I can't get completed without some help. I love Square. But when it comes to the loan suspense, it's awful. We're coming into the new year, and it would be nice to start it with a wonderful cash flow addition. 

[Healthyketo]

😫98% and still no offer.  It’s so frustrating!  

[Ann14]

At 79 now and nothing hopefully this week coming up 🙏🏽

[Fitnessgirl]

81% I disconnected my bank account as i felt connecting it might of hurt me. 

[Jjpainting]

How did you disconnect it?  When I first signed up with square, I connected my regular checking account for transfers. Then when the option came up last year to connect it for loans, I did do just that. I was thinking the same thing about disconnecting it for loans, but not sure how. I don’t want to disconnect it for transfers though as I know they are connected in two different ways 

[Fitnessgirl]

I removed access by doing it through my bank app under security settings. By removing permission through the bank app this in theory should stop it from reading account information. I've still been able to cash out with square so it hasn't affected that. 

[Ann14]

I need to unlink my account with square but idk how 😢

[Fitnessgirl]

I "unlinked" access by doing it through my bank app under security settings. By removing permission through the bank app this in theory should stop it from reading account information. I've still been able to cash out with square so it hasn't affected that. 

[Healthyketo]

99% paid off now and still no offer. Anyone receive one recently. I’m beyond lost for words cause have never gotten this far without another offer and this is my 6/7th loan. I really love using square they have been the only POS system I’ve ever used and don’t plan  to change to anyone else. Just frustrating not knowing when I can get more capital to grow my business. I’m praying I get an offer soon! 🙏 square please help this small business owner out! 🙏

[Ann14]

I’m sitting at 79

currently 😢