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.

[Twpchair]

Ughhhhh, hun I posted yesterday and wasn't logged in and thank you so much!! I am beyond excited and happy for you finally! Having your our rep is a life savor! Mine has helped me more than I can count and he wasn't getting off that phone until it was done! I hadn't seen you in awhile and was wondering what was going on. This ❤️ made my day! You go and keep pushing forward! You just have to reach that right person who is going to listen and understand and you found him! Congratulations to you!!!

[Twpchair]

Yes! 💯 agree and I am so happy to see this! I understand I really do that people get frustrated and don't understand why or what they are doing wrong but most honestly are just just waiting for the algorithm to pick them off but @GlitzyCow was caught in the system and just needed the right person to help and did! I've been following for over a year and baffled but it's all good now and glad they stuck to it!

[Twpchair]

Yessssssss! I am so happy for you, and I will say an account manager is the best go-between and stops all those generic responses. You have to reach a certain dollar. I do believe, but the guy I have, I've only had one issue with a deposit and square posted earlier that day issues. Mine is set for 5 pm Eastern and nothing? By 7pm, I called him, and he's like, no biggie hun I got this! Walk me through manually and nothing, then changed it to 8 pm, and he never got off the phone. 8pm, nothing tried instant deposit, and then he said put me on speaker log into your bank and see if there are any issues there? Yep! My credit union was down, and he said, "Let's give it a few minutes they said 8 pm and then boom done! All that time, it was my credit union down and nothing to do with Square, but he wasn't getting off that phone until my deposit went through. I am so happy to see this post! There is so much relief off your shoulders, I'm sure. 

[Twpchair]

It's been so rough and baffling for you it's like I personally feel your struggle 😪 but I am truly happy for you finally! You go and get it. Keep working with your personal rep over the one client and it might take him/her to the top but a legit customer is a lose on their end with good fees and he just needs to work it out. That is what they are there for and my guy is amazing and yours sounds the same. Most would have given up and left and you didn't you stuck with square and keep pushing up the ladder! Good for you!

[thehealingplant]

Big week processing for us and hoping we'll be rewarded with another offer. We're struggling to keep up with our competitors in marketing and could definitely use the boost to help advertise. Fingers crossed for both us and everyone else waiting. Have a good pre-holiday weekend everyone!

[Twpchair]

Good luck and I'll be watching for you! Advertising is a great investment! It's trending higher than normal so hold tight and keep processing hard!

[thehealingplant]

Appreciate it! We're going to remain hopeful but we've seen a huge drop off compared to some major competitors as a smaller business versus a multi-location conglomerate. 71.5% after a solid week so just hoping. Wishing the best for all the small businesses out there 🙂

[Salonkoje]

I've been watching this thread for a while. Today I had 81%. Everything was in the green and I finally got a loan offer so they are still giving out loans. It was $2,000 less than my last offer. But just keep processing and make sure all your stats are in the green and hopefully alone will come through for all of you. 

[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.