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.

[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.    

[Healthyketo]

Here's to a new week! Had a great processing day yesterday! Sales are up and all on green. Lets pray for that good ole algorithm to grab some of us today! 🙏 Prayers to you all for a great week! 

[TaylorA92]

5 year square business. Doing 300k annually. Still on pace for that this year. 78% paid off and for the first time ever I am ineligible. Just switched to that today. Crazily enough it was due to processing volume which isn’t any different than any other week. Every transaction we do is processed through square. Anyone else have this experience? Did it rebound quickly back to eligible? 

[Bonzy2010]

this is in no way a gurantee but just in my case...my last offer I received I had the same thing happen the week before I had a new offer pop up. It reverted from not enough volume to green again in like 2 days and then the new offer showed up the following week. 

[TaylorA92]

Well it still says ineligible but the processing was put back in the green. So I assume tomorrow it’ll likely reflect that everything is normal. 

[Cauldron]

Received an offer at 72% after an amazing weekend of sales. We jumped about 10% of our loan amount in 2 days. Typically we get an approval and deposit within the hour, but it’s been a day and it still says pending. I’m hoping our approval comes through soon.

[Healthyketo]

Congrats! I had a good Sunday of sales but still waiting on an offer. Hope your approval comes soon! 

[Twpchair]

They have been running about or 2. Watch your dashboard and your loan pie chart and your bank. I knew when my chart went to zero and checked my bank it was there. I did sign the paperwork the day prior but the emails are coming in a Lil slower than it's working behind the scenes. 

[SPPhotography1]

Can someone from Square Loans please review my account??? I’m at a loss at what else I need to do to be offered a Square Loan again. I’ve been processing with Square for over 15 years and am on my 10th loan currently. I’ve paid back every single loan within 8 months at most and this one will

be no different. Every business metric possible is in green, record sales year, record card processing, record numbers across the board, no refunds, no complaints, no issues of any kind in our entire history with Square. Current loan is 3/4 paid off and no new offer in site. Something has definitely changed over the last 2 years with Square loans offers and this is the kind of stuff that causes businesses like mine 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 of my business that isn’t way up normal. I’m sorry but I cannot believe there’s just sOme

random computer software out there just randomly generating business owners loans through a confusing algorithm that makes no sense to anyone but it. I’m not buying it.