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.

[papaya19]

I’m sorry to hear that! It’s so difficult to understand their algorithm. Has anyone had luck getting a loan this week? 

[Twpchair]

Just one I saw at 96% paid back. Last week is was a little bit better. 

[Twpchair]

Ughhhhh,  not what I wanted to hear. 

[Ann14]

I just hit 84% and updated around 3pm and nothing yet 😪

[itisnotjustpiza]

Our last loan was paid off on June 18th, and still no offer.  We had a week of vacation with no sales so I expected a delay.  We are in the food industry and I am wondering if things have slowed in our industry in particular in the means of financing.  

[Twpchair]

I think a lot of lenders are being very careful right now. They are 💯 still lending. We just don't see them flying out the door every day all day. 

[Healthyketo]

Has anyone gotten an offer recently? Haven’t heard of any lately 

[Twpchair]

One yesterday or last night, 96% paid off. Pretty quiet week compared to last week, unfortunately 😕 

[DCC2]

Had a big week leading up to the 4th and went from 84%-96% and got an offer today. Last loan came at 86% in december, before that my previous couple had come in around 75% and 1 in the 60's

[Twpchair]

Congratulations! Thank you for the update! It has been trending higher to paid off!

[Toripori]

I’m UK based and actually made a formal complaint regarding the factors page and the fact that when I asked where my factors dashboard had gone to I got the scripted response that I wasn’t currently eligible for a loan. I got mad as that wasn’t the question I’d asked and I was fed up with the lack of care square has for its customers that it doesn’t even take time to understand a question and reply properly. A week later I was told that the factors dashboard will only show again when I’m close to an offer and that my complaint was not upheld! I’m so close to leaving Square, I have my sumup account ready to go, the loans whilst I really need one to expand in to events this year are not worth the disregard I’ve been shown. Fully paid on first loan sine 04/17 up on my last year when first offer was made. 

[Twpchair]

I'm so sorry to hear this. It's hard to get past the generic scripts and get someone to understand your not asking about your loan but your metrics which I believe we were told this is a tool to gage your business and what we needed to work on to be eligible for a loan. So that doesn't make sense that it will only update when you are eligible? It should update and work every day! Is your call center in the UK or USA? Not saying one is better than the other but I do know when I had an issue before I every said the dreaded word loan I said I believe I need tech support! She then asked me about it and yes, she transferred me to tech support. How can you get picked up by the algorithm if you haven't been updating at all? You can't and probably wouldn't without anything changing. You need tech support to look into it.  Good luck I wish you the best from Michigan!

[Toripori]

Hi Michigan!

as I elevated it to a complaint tech was contacted who confirmed that not seeing my factors in the loans dashboard is correct and I won’t see them until nearer the time I’m eligible. So I guess right now I’m not eligible! my factors have come and gone since December when I was around 60%. I’ve never been more frustrated with them! I believe ours is UK based as my replies always come during our opening hours. Also to contact by phone is almost impossible always via an email sadly.

[Toripori]

I also can’t see any time stamps as to when my account was last looked at seems to be a US option only

[Jjpainting]

I’m in Michigan and there’s a time stamp under the eligibility factors when you click on the area where it says your business isn’t qualified for a loan. Mine updates daily except when I go without card payments. Like mine didn’t update for a week cause I was out of work due to injury and had zero payments come in in 10 days. But the day after I started back up, daily updates time stamped 

[Healthyketo]

Super slow this holiday weekend so I’m sure there’s no offer in sight for me this weekend. I wish the algorithm was more transparent. Still everything on green. Hoping for the best! 

[goldslinger]

I just got an offer right around 83%. It’s about 3k less than the last so im considering declining. Makes no sense. I’m a two person business that has already cleared over 100k this year. No chargebacks. Nothing negative. So frustrating. Has anyone declined and then been offered more layer? 

[Jjpainting]

Well at least you got one.  I just had a really busy 4 days (I’m just a one man owned company, , but have a few part timers that work for me.  I went from around 79 or 80% paid off up to 86% paid off from the first through fifth of this month. I’m cleared $107k ($78k in credit card processing). 

im sure that if you decline and wait until you have like a super super busy week, a better offer will come along. 

quick question, did your offer come as soon as your account was updated with that time stamp?  Just curious is all.  I’m on my 4th loan, and never paid attention to that. 

[goldslinger]

I believe so, yes. Because I usually am evaluated between 2-4:30 and that’s when I saw it. No email, either. Had to check my dashboard. 

[Jjpainting]

Gotcha. Thanks. I haven’t been updated yet so crossing my fingers as my sales we up 300% this past week. And yeah, the only time I’ve gotten an email for a loan was the very original first one. 

[goldslinger]

Oh wow, I’d think you’d get one soon especially with an increase that large. We have had a couple really awesome weeks and accepted walk-ins yesterday to boost sales. I think it worked. But today has been busy with appointments too. How long until these offers expire? Or should I decline??? I could just cry because we needed the anticipated larger amount.