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 · 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 

[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. 

[thehealingplant]

We have never declined an offer however it seems that when people decline them or miss them there is no exact timing for when you may get another offer (similar to a normal situation.) Obviously the only issue with this is if you need the help now or are able to wait for it.

Even if we got offered a slightly lower offer than our last we would have no choice but to accept as we're hitting a really hard season of the year and need to market to keep up with the larger companies around us who can spend endless money marketing.

Obviously do what's best for you and your business. Just consider how it could or could not affect your business and it's needs.

Wishing you all the best and continuing to send good vibes for offers for those in need (including ourselves.)

[Jjpainting]

Yeah what I said was just a guess that maybe a larger offer would come if you wait for another one and you have some amazing sales in a week. But you’re really rolling the dice. Do you mind me asking what your last loan was and how much your processed over the past 12 months. My last one (4th one, was $14,700 and came when my 3rd one was 66% paid off on November.27th which was only a $8350 loan).  When I got my last loan, I did $120k in processing over the previous year.  Now I’m at $149k over the previous year. So I would think my next offer will be larger as well but who really knows.  But I’d take $3000 less right now. That would still give me $9000 (I owe pretty much just the loan fee right now of $2300 or so). 

[goldslinger]

So we opened doors January 6th. We are piercing and fine jewelry. Our first loan was about $8k, paid that in about a month and some change. second was 14k on March 6th and we are 83% paid off. Todays offer was $11,500. Our sales have increased from 11,k in April to almost 20k the past two months. I’m at 14k for July already so I anticipate an even better end of month. Knock on wood. 

[Jjpainting]

So our current loans were the same pretty much. My slow months are January and February where I only did a combined $10k in card sales but $20k total sales. But then in march I get swamped and did almost $25k in card sales.  From march through October I average about 15k. June was a bad one at only $6500 but that was cause I was out of work for over two weeks with a broken rib. I’ve already beat last months card sales in only 5 days. So I truly thought that hitting those numbers and hitting the 86% mark was going to trigger one today. I had a large sale last night, which still is in the pending phase on the loan sheet. I wonder if pending loan payments from sales don’t get counted for loan offers. That sale was at 630pm yesterday. Shocked it’s still pending 

[Jjpainting]

Well I just looked. I did about $7k during the past week when my average is like $2800. So maybe not 200-300% but still a big week. Mine updated 20 min ago and no luck. I also had a $4k sale and wanted it to be paid by card. But the customer insisted Zelle.  I knew if I also had that sale card processed making it a $11k week, I probably would definitely have gotten an offer this week. Oh well. Got a couple more large sales coming up in the following few days. So we shall see. What hurt me is that between June 22nd through June 30th, I had no one pay me by card. Sorry for rambling.  lol.

[Ann14]

I just received an offer just now thank god 😭🙌🏼🙌🏼 it was 12,000 less then last loan ..this is my 5th loan if approved  my last offer was 52,000 . 

[Healthyketo]

Congrats! I’m so happy to hear people receiving offers today! Hopefully I’ll be next! Had you been updated already or did it show up when updated? 

[Ann14]

It updated around 2:55 pm so after I checked my dash board and it was there ..no email 

[yoyobanhkhot202]

Hi,

How to know when the account has been updated? I’m at 84% but no offer yet. Thanks so much

[GlitzyCow]

How much do you process yearly? On average 

[Jjpainting]

That’s awesome. I’m waiting for my 5th offer. What percentage were you paid back on current loan?  And I think someone asked this already, did it come in before or after the update or as it updated.  I really thought I was gonna get mine today. 

[Ann14]

I was at 84 percent 

[Ann14]

I updated around 2:55 and it 4:41 pm in Texas ..I got the offer around 4:30  ..my yearly process from last year was 405,000 it was my first year ans this is my second year .im in a restaurant business 

[jackiebee12]

oh this gives me hope! also a resturant in texas and we hit 84% today. we had a slow june because we took our first vacation in almost 2 years but we are on our 8th loan. we got our last one at 50% so i’ve been pretty bummed that this one has taken so long. the one before that was around 79% 

[Ann14]

We had a slow june also  .felt like everyone  left for vacation around the same time ! Its coming in a higher percentage ..very soon you’ll receive one  .hopefully see offers this weekend 🤞🏼 mine came on a saturday and got deposit to my square account in seconds ..make sure to receive it on square account it seems faster to me.last time it took a while when it sent to my main bank .

[Ann14]

Thank you so much I really needed it with me moving to a new location and I was feeling stuck ..

[Healthyketo]

Has anyone received an offer today? Hopefully today is the day for us who are waiting 🙏🙏

[Jjpainting]

Nope. Honestly thought I would have this weekend too. Currently still sitting at 86% and nothing. 

[Jjpainting]

Sorry I got you and the healing plant mixed up lol 

[Jjpainting]

They are one of the ones I’ve seen at 100% for a month or so I think