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]

Hmm, if it's green in that section it means you have a good mix of new vs returning customers and with it green according to them that's what they look for and the algorithm picks up all green sections and good to go to wait for that Ole miracle and mysterious algorithm! To me, it's like who picks the shortest straw wins! 😆 🤣 😂 hopefully,  everyone who is waiting gets their offers. 

[thehealingplant]

I just spent over an hour on hold trying to get the situation sorted because we started the day with 7 new customers that showed as 3 and while I was on the phone with support it changed to 1 new customer. Our metrics still show green so I'm hoping it's not affecting things but I'll be honest, it's a little scary given what Glitzycow went through.

[Sammie_C]

Hi @thehealingplant!

Thank you for your post and we understand your concerns.

The information shown on your eligibility page is usually refreshed in real time. You can see the last date and time your loan eligibility was evaluated under “Eligibility factors.” However, if you have not processed payments through your Square account recently, the data may not be updated until you process payments again.

If you have additional questions about your account specifically, please feel free to contact us directly for further assistance.

[papaya19]

I have been sitting at 82% paid off for a while. All of my metrics are in the green and have been for a while as well. This is my sixth loan with Square. I do not understand their algorithm, and it is quite frustrating trying to figure it out. My first few loans I received another offer at around 60% and my last I received at 41% paid off. I am playing with the idea of switching to Klover if something does not give soon. Any suggestions?

[Ann14]

Definitely do some research on clover and what’s the difference between square& clover . I know they charge a monthly fee

[Twpchair]

I agree 💯! I've seen it multiple times and I understand people get frustrated and they have some very smooth reps trying to get you to switch and made some big promises and you can easily look at their terms and loan section. It clearly states 6 mths of processing prior to a possible 1st time loan! They use an algorithm as well and you are starting from scratch and so will your loans! Jump on their forums and read the comments as well. Their comments are almost identical to right here. It's not just square it's lending in general that has pulled back and watching what we are as well the economy hasn't been very steady and that has a lot to do with lenders. Big banks try to go and get a business line of credit now vs 3/4 years ago is much harder and you better have a ton of paperwork to back up your business. A credit union is easier especially if you have or are using one now. I have a line of credit with my credit union that I've had since 2012. I got mine years ago and in and out in couple of hours not weeks. I know sometimes the grass looks great on the other side of the fence until you get there. Good luck to everyone!

[Healthyketo]

Good luck to everyone waiting today. I’ve learned to take it one day at a time. Praying for a miracle today. 🤗

[Jaygripon]

I’m on my 83% and I don’t still see any offer; I have 5 locations and they are all with square, other location got an offer but I didn’t accept it and in few weeks it’s gone, 

how’s everyone doing when it comes to the loan offers?

[brunch1]

I'm wondering as well. I am 92% paid and they haven't offered anything. its weird no human can explain the process. They claim that its AI generated

[Lou8]

Hi @Jaygripon and @brunch1, thank you both for posting. I wanted to provide a bit more insight about loan eligibility.

We can’t predict if or when your business may be eligible for another Square Loan. We continue to monitor your account for eligibility, and you’ll get an invitation email and be notified on your Dashboard if your status changes.

• Loan offers are based on a variety of factors, including, but not limited to:
  you current payment processing volume
• your customer mix
• your Square account history.

Even if your business satisfies one or more of the criteria, you may still be ineligible if it does not fulfil other eligibility requirements.

You'll find more information about the process on our Support Center here, or don't hesitate to contact our Support Team directly at 855-700-6000. They are available Monday through Friday, from 6am to 6pm Pacific Time.

I hope this helps, but let me know if you have any other questions. 

[brunch1]

But it does meet all the other metrics as shown in the dashboard. That’s why everyone here is upset and/or confused. The information we are shown isn’t matching the actions you describe as being eligible. 

[thehealingplant]

The biggest issue that Square has to be honest is the super generic responses like the one provided above. The copy/paste is a huge issue.

[Twpchair]

It is and honestly it touches on misleading or not fully standing. I have reached out to the higher ups than me and see if we could get better clarification of it or the wording. In years past most all square users knew that loans regardless of sales, the new metrics is NOT guaranteed at all. It was a "perk" but unfortunately over the years since myself 2012 we've become accustomed to a new offer at 70-75% paid off. Therefore they need to update and provide what is going on now. We are all adults and can handle the truth. But when reading it it's kinda contradicting and misleading. If lending has slow down so be it but keep your customers posted and informed. That way we have the opportunity to go to our bank/credit union. I hope in an hour or so I or @Minion will get a private message as to what to respond to. 

[Minion]

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@brunch1 wrote:

But it does meet all the other metrics as shown in the dashboard. That’s why everyone here is upset and/or confused. The information we are shown isn’t matching the actions you describe as being eligible. 

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I really hope/wish that Square would do away with those metrics in all honesty.  My opinion of those "metrics" is that they were intended for a "general" (maybe even extremely general) guideline.  I think many sellers obviously see those as all green, and then based on % paid back are waiting for the loan to come in.   I don't believe those are useful, and then just causes more chaos, stress and let downs in the long run.  

In the case of the loan, I think just the % paid back would be sufficient and if an offer comes in it comes in. 

As for the generic responses, the mod staff  here and even support is probably honestly all that they do know, or are able to share.  I'm assuming its of some type of property algorithm that probably only a handful of people truly know how it works.

This is all just my .02 and could be completely off .  With all of that said though, there are the benefits of these loans depending on the situation of sellers,  No credit check, no hard pull, minimal (0?) paperwork needed.  

I hope you do receive an offer here soon though, maybe within the next few days being so close to 100%!

[Twpchair]

I agree 💯 with you! It has only caused more confusion if say you're at 90% or a few on here now 💯 paid off all "green metrics" are booming but no offer? Is it just a tool for us, the customer, to know what is going on with our business than great. But with how it's worded, it comes across as this is what makes you eligible for a loan and not just a tool or feature for businesses to use and work on. This might be a great question to bring up in the super or stellar site. 🤔 I'm the type of person who I just want to know type thing I'm a grown adult and just give me the facts and truth and I can go from there. I try to encourage business owners to try their banks as well. I belong to a small credit union, and years ago, I got a business line of credit. I understand now it's harder all lenders are holding tight, but if you have a good relationship with your bank/ credit union, it is a great thing too. I didn't pick Square out of Blue in 2012. I did research, and their biggest plus was you swipe it, and at the end of the day, it's in your account. Other businesses or POS not the best reviews or for a cheaper % you got a weekly deposit? Hmm, you're banking my money and making interest off of it when I could with Square? They have never not once ever deposited my money, and that's a massive plus. The rest are perks we got used to, and unfortunately, it clearly states not guaranteed. Thanks for jumping in and helping with questions. 

[Minion]

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@Twpchair wrote:

Is it just a tool for us, the customer, to know what is going on with our business than great. But with how it's worded, it comes across as this is what makes you eligible for a loan and not just a tool or feature for businesses to use and work on. This might be a great question to bring up in the super or stellar site. 🤔 I'm the type of person who I just want to know type thing I'm a grown adult and just give me the facts and truth and I can go from there.  

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All of this Exactly ^^^   I know I've mentioned my hatred for those metrics somewhere else, but I just can't remember where exactly that was. 

I've taken out Square loans before in the past.  With my business, its a large 60/40 split between cash/check and then card.  So I can extend the loan out to the 12+ months vs the average of probably 4-6 months.  Makes a huge difference in the "APR" so to speak.

Yes , if they even added a temporary wording like "These metrics are for illustrative purposes only, and do not guarantee eligibility when green" would at least keep peoples hopes level and down to earth.  

I hope everyone gets their funding.  But in the mean time, take some of those sales %'s if you are paid off, drop in a squares savings account for a rainy day. Keep cranking out sales, putting some aside each time and maybe the loan gods bless them with offers.

[Twpchair]

I tagged you in our weekly thread with Max to see if there is something that can be done about the wording.

[Healthyketo]

I agree, I don’t know how many times I’ve emailed square and have gotten the same generic response through email. Well, my account was updated at 2:40pm cst today and no offer. Going on 5 days paid off. Guess the waiting game continues. 

[Blockhart]

Have you had a new offer yet, I’m day 6 paid off - this is my second paid off loan, it was paid 8 months early. And everything is green. I don’t understand why I haven’t gotten a new offer yet.

[Healthyketo]

Nope! Nothing! Going on 7 weeks paid off all green metrics up from previous month and still no offer. I’ve been so disappointed with square. But what can I do other than just keep waiting patiently.!😭

[Blockhart]

That’s so frustrating 😭 I’m so sorry. I’m really needing a new one now so I was hoping you were gonna say something different 😩

Keep me updated if you get a new one, I’ll keep you posted with my updates too and if I get a new one or not! 🤞🏻🤞🏻 here’s to hoping we both wake up tomorrow with new offers! 😭