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.

[Healthyketo]

Congrats! Paid off yesterday everything in green my account was updated at 334pm cst  today and no new offer in sight. I’m hoping I will get 1 soon. 

[Twpchair]

Mine updated at around 2pm Eastern at about 7pm. My offer came in around 81/84% prior, which was 91%, and it really is trending higher percentage paid back. Not everyone, of course, but the majority! I've been watching you and hopefully it will come soon! Ps. Please watch your loan section because my last 2 offers, for some reason, it showed up there and no email? Could have been a glitch, or I accepted or denied it before an email was generated. Good luck 👍 

[Healthyketo]

Hoping today will be the day! 2 days paid off! Anyone ever gotten an offer on a Sunday recently?  

[Ann14]

I’m siting at 81 😞 and nothing yet hoping for this week ! 

[goldslinger]

Currently sitting at 75% on our second with everything in the green and nothing. We had our second loan offer March 6th at 61%. Trying to figure out what math they math in this crazy algorithm to figure out when my best chances are but honestly I’m starting to think it’s by chance anymore. I don’t know my heads spinning after reading 29 pages of this thread. 

[Twpchair]

You and everyone else wonders about that mystery of the Ole algorithm! Unfortunately, nobody knows how to! Just keep processing and and doing business that's all we can! Hopefully it will come soon for everyone waiting! Good luck!

[Healthyketo]

PATIENTLY STILL WAITING! 3 days paid off.  I can't wait to come here and say I received one. (soon hopefully)  I love seeing those comments on here! Hoping for whomever is waiting for one today receives one. 🙏

[BodyLabPhilly]

Sitting at 82%, and today is going to be a strong sales day so hoping that an offer comes through.  Hoping that your offer comes soon, too!

[Healthyketo]

Has anyone ever received an offer hours after being updated for the day? Or is when that time stamp update happens is that the only time throughout the day the account gets seen? Just curious. 

[kyablonowski]

I actually just receivd a new loan offer on Friday. My elegilibity said not eligible  around 5:30 EST or so. Then hoiurs later I happened to look at my app and saw an offer. I wasnt notified by email just the app showed it. Very grateful it finally came. Keep pushing forward : )

[thehealingplant]

Very stoked for you! Hoping the best for HealthyKeto as well as our business too. Have a safe and happy holiday week!

[Twpchair]

Congratulations! Mine after hours, I didn't either receive an email or only popped up on my account and loan section. I did afterward with the follow-up and that..

[Breebree89]

I literally just got an offer FINALLY!!! I  paid 77% off of my 2nd loan.  This offer was $1,000 more than my last offer. 

[Healthyketo]

That’s great! 🙏 I’m praying hard for the rest of us! 

[Twpchair]

Congratulations! Thank you for the update! Let's hope this continues!

[Jjpainting]

When I received my 3rd loan offer, I to was right around 77-80% paid back on my second loan and it too was about $1000 more than the second loan.  My second loan was almost 3 times as high as my first loan and didn’t come until my first loan was 100% paid off. My 4th and current loan came when my 3rd loan was 66% paid off and that was almost double the third. I’m currently sitting at 82%. Started the week at 79% paid off and expecting to continue having a big week and should finish out the week at 88% paid off. Hopefully that will trigger a new loan as it would be helpful very much.  If I need to wait until it’s fully paid off, I’ll have to debate if I truly want another one.  As much as one would help right now, I’d probably just put 20% of all sales aside instead of continuing paying $2-3k every 4-6 months for a loan. But I’m still hoping for an offer soon for now. 

[Twpchair]

I have multiple times. I tend to update 1-3 pm and close at 4-5pm. My last 2 offers both came around 7pm. One on a Saturday, the other I believe Wednesday. I don't think I could go back further and look? But those last 2 are the big push for the green metrics. Both mine whether it was late I didn't receive an email notification only on the loan page it popped up and my main page. I did receive emails after that though no problem at all. 

[Breebree89]

I will say this is only my 3rd loan but every offer I’ve gotten was around 4 or 5 pm. 

[goldslinger]

My last loan offer came in around 9-10pm EST. I remember because it was after a busy Saturday. Now, though, our numbers continue to go higher monthly (albeit a slow weekend this past one) my husband issued one refund after accidentally charging someone. He stated that he had the option to declare the charge was a mistake. Will that one time refund affect our eligibility? Anyway, I think to appease the square loan gods We won’t take cash anymore. We opened in January and I think I’ve handled cash maybe 5 times since opening? So I don’t think it will change much within our business (we are piercing and fine jewelry) 

[Jjpainting]

I truly don’t think it will affect it. But I’m waiting for a loan myself sitting at 83%. I issued 2 refunds since I got my last loan November 27th, one right after I received that last loan and one about two months ago…which doesn’t seem like a lot, but I only do on average 3-4 card payments per week, but I’m a residential painter, so most of my card processing transactions are in the thousands.  My refunds were from me refunding deposits due to the homeowners deciding to sell their homes without painting. I think that if they weigh loan offers off of a return or two, would be insane. Refunds of some sort, are part of any healthy business, as long as it’s within reason. I never found anything on squares site stating refunds effect loans. I’ve seen a square seller or two mention it can affect it, but I don’t know how much facts their claims are 

[Twpchair]

In the green section of your progress it has a section on returns or refunds. It semi goes into details about it and how it could effect your loan ability. It didn't  say like 1-4 per quarter type thing. When I read it again it it just is telling you to try to keep it low. If it was a problem I would assume that green section for returns,refunds and disputes would turn from green to needs work type thing. Being in your line of work and customer changing colors or I can't even imagine what changes or how often they change their minds. That's much different or now they are selling their house as is instead of a fresh coat of paint. I have seen others post "I had 5 returns" and still received an offer. I've seen others higher that stated the same thing. Some owners or line of work are natural just going happen.  Good luck! There's finally been more movement this week!