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.

[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 · Accepted solution]

Congratulations! I am sorry it's lower than expected but you are correct about daily swiping vs not. That's one of the metrics. I'm retail furniture and I process daily. If 90.00 or 900.00 a swipe is a swipe and they each add up at the end of the day. Hopefully, the next offer will go up! I don't know if the algorithm picks up how your business processes I hope it will or maybe that's something that should be addressed to square. You are not alone and a big market for venues and events. The same goes for contractors who send out invoices and how fast the customer pays. Congratulations on at least getting one and thanks for the update and details about it.

[Twpchair · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[ohboi]

We’ve been paid off 1 Month and 1 week. Heavy card processing with all green metrics. No new offer

[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.