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.

[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 

[itisnotjustpiza]

100 percent since June 18th and still no offer.  I have given up on hopes of it happening for us as well.  I see too many other people paid off and nothing.  I also notice our number of transactions for July are way off.  I had mentioned it but got a generic response.  It is nice to not have that payment coming out right now.