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.

[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.

[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!

[Jjpainting]

Oh okay. Thanks a lot for that information.  Not sure how I missed it. 

But yeah, I’ve been with square since October of 2022, and have had only two refunds. One in December of last year and one in march of this year.  Being that both have during my current loan (which is my 4th loan), I wasn’t sure if it was going to have an effect. 

[Ann14]

I’m currently sitting at 82 % today updates around 3pm and nothing yet 

[Jjpainting]

I’m at exactly 82% myself but no update yesterday. My last update was on June 24th.  But I know they only update if you have card sales. And before yesterday, my last card was processed on the 24th. But I think I had 3 sales yesterday paid for my card, and that made me go from 78-82% paid off. That’s what sucks being a business that only averages a few card transactions per week, there are times where I go a week with my customers insisting on paying another way, usually Zelle. I tried to get those few customers to pay by card, which would have been another $8000 in sales and brought me to 90%. But I can’t help that. My loan will be paid off in about a month though, so I’m hoping I’ll get an offer well before then. 

[Ann14]

oh i understand what you mean when they ask for cash app and zelle for payment method . A few are still waitjng and they are paid off .hope we get an offer soon 🙏🏽

[thehealingplant]

Well, sadly even after an extremely strong weekend we are still sitting without an offer. Genuinely praying that we get reassessed and offered so we can start pouring some funds into marketing. It's getting real rough to compete with multi location businesses who have endless cash to pour in.

[Healthyketo]

I know exactly how you feel. We had a Good Friday and an even better Saturday paid our loan off on Friday and thought for sure an offer would come in by now but nope. Need one bad to, I have an opportunity to lease a small coffee shop and sell twice as much as I do now but desperately need an offer. These square loans are so convenient to pay back with daily sales I love it. Hopefully soon. I’ll be praying for you to! 

[thehealingplant]

Wishing you the absolute best! Hopefully it comes!

[Twpchair]

Still hoping for you! Please I think I told you before keep checking the loan section and not just waiting for an email ok. My last 2 was there! I took one and denied the other and then the emails kicked in. I don't believe they have stopped that but it just faster in your dashboards before the emails get sent out is all. Good luck and fingers crossed! Growing is a great thing and like you said not cheap! 

[Healthyketo]

Thank you! 

[Twpchair]

I know exactly what you mean! Advertising is huge for people to see whether it's a billboard which we have but expensive as heck! It has paid for itself in the long run but ours here want atleast a 6mths lease or year lease and that hurts all at once. Banners above our business isn't free either. A couple years ago I accepted a loan and 💯 went into Advertising. I am very fortunate I bank with a small town Credit union and I have a line a credit for emergency or find a great deal on inventory. I know bigger banks aren't as easy to work with or your days back and forth with documents but ours thank goodness a couple of hours start to finish and done. Good luck and show those big corps who the boss is!!! I shop small and local only! 

[thehealingplant]

Thank you friend. We definitely feel the same way about supporting local! We certainly might have to look into the possibility of that or another processor as it seems like there is a lot more movement with some others. However, we really want to maintain loyalty to Square if at all possible and not just play the "grass is greener" game. Since we all know how that can end haha.

[Brewz]

Thoughts on this scenario (asking for a "friend"):

Last loan of $49,000 (plus fees) is about 87-88% paid off, with about $8500 remaining.

Sales up 45% since loan started.

NEW OFFER comes in for $10,000!!!

Plus fees of $850.  They automatically add the existing loan to be paid out, so the overall deposit would be about a thousand bucks. 

Keeping in mind, 8.5% fee was originally paid on the original loan.

There have been six previous loans and the offers always for higher than the previous except for the last one.

Is that not just a total rip off in the end??  Who in the right mind would take that kind of a loan offer to begin with?

I guess my question is why would anybody consider taking a loan for as much as their current balance only is?  Why even make that offer?

I myself I'm at 83% with about 7,900 owing.  If I get an offer like that, I would probably quit using square altogether.

[GlitzyCow]

It honestly to me sounds similar to what happened on my last one before I went through a year of chaos. All my loans went up then I started processing for a business that wanted to use a card and my sales went up like 60%. I thought the loan would be bigger then they sent me one that was 2/3 of the previous and within two weeks of accepting they put a limit on that customer. Then they asked for statements etc on my account. If I were to venture to guess they are fixing to send an information request on the business to verify income and customers.