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 

[Twpchair]

You are 💯 correct. square is worldwide, and maybe around the same 100 do I see regular or semi regular. Not everyone posts on here. Most don't use or take advantage of half the tools available. I was up north for 3 days and no phone service (nice). I was hoping most of you would have had an offer. The offers are coming in much higher to pay off for most, I see. A few in the last month in the 80s. Unfortunately, yesterday I jumped on 4 different forums, reviews and reddit and they are stating the same thing. Thank goodness this is our busy season and I have been trying to tuck more away than normal because I don't think we've seen the worst yet. September they will announce if they raise the interest rate again and that affects lenders and their rate increases. We need things to calm down and stay stable and get back to normal! I hate to see businesses kicking butt and still waiting. Hopefully, it breaks loose soon!

[thehealingplant]

I just off the phone with support trying to get answers about how this glitch will affect us possibly down the road and of course I get fed the generic answers with no support at all. I'm so sad that Square can't do a thing except give you force fed lines. It's really upsetting and discouraging to be honest.

[Healthyketo]

I also made the phone call last week to ask for an account manager so I can personally speak to someone about my account. Finally had a call back on Monday saying they would send to have my account manually reviewed but was told the same generic message everyone gets about them not knowing when anyone gets a loan and the algorithm reviews accounts daily so just keep processing payments and basically just wait til it’s my turn. 🤷‍

[Twpchair]

When you call and I would! Do not mention loans at all. Tell them you need tech support! Once you get with them and it's all done ask them by the way could you please help me reach a person in the loans department so I can let them know I'm having tech issues and need to know if this will affect me while they are handling it. 

[thehealingplant]

That's sadly how it was originally handled. Their support "escalation team" rules they were doing things "correctly" when it's obvious that they aren't and it's messing up our customer mix. It remains green but it's concerning for sure. It's genuinely just a shame that we can't get any clear answers.

[Twpchair]

Ughhhhh, I was gone for 3 days up north and no phone service and was hoping to see half of you get an offer. IMO it has little to do with you or your business. Watching other forums this is what they are experiencing as well. I've noticed up top pinned by a mod here that they added a new line to loans this year. You can scroll up but in general it says they look at the overall health or stability of the economy. It's not just one business per say but square being world wide most lenders are holding tight. Not that you want to hear this but they have board meetings and investors that watch their overall health just like our business. Are they still doing loans yes we see a couple a week. Is it different from say 3/4 years ago yes we can see it. The Feds are debating on raising the interest rate again and that affects lenders and their interest rates. Hopefully, this will bust loose soon. I know so many business owners waiting.  Good luck to you and everyone!

[Robgrey]

I am currently @ 56% paid back in 4 months.  I've always received loan offers between 59-77%.  All my metrics are up and I process over 800k per year.  I'm hoping for a new offer within the next month to expand my business.     Good to luck to everyone.  KEEP SWIPING.

[GlitzyCow]

Hey guys. When you get those emails from “management” my best advice is to keep emailing them. Once they get fed up with the same question they don’t answer they might close the interaction. If this happens there is a chance square will send a survey asking for feedback. I left negative feedback then a description of wanting to speak to someone not email for a week solid. They sent me an opportunity to have a call with an account manager at that point after leaving the feedback to the survey thing. 

also you can maybe look up “square appointments” and might be able to book time that way. 

[thehealingplant]

We just hit the "magical" 75% mark. Haven't updated for the day. Fingers crossed.

[Healthyketo]

🙏🤞I wish you the best! I just want to see at least one of us on here get an offer. 🙂

[thehealingplant]

Appreciate that. Hoping for you as well!

[Twpchair]

Good luck to you and everyone waiting but it has been trending higher % paid back to a few on here completely paid off. Wish you the best!

[thehealingplant]

That's why I put the quotes around "magical" lol.
Although I will say it doesn't seem like anyone who is fully paid off is getting offers at all. It's either 70s-80s or nothing based on the last few pages of responses and maybe even further which is scary.

[ohboi]

Definitely seeing the same thing. 70s-80s or nothing at all. I’ve been paid off going on a month and 2 weeks on next Monday. Processing roughly 270k yearly. Last 2 months I’ve processed 19k in card sales alone. Everything green and nada.

[Twpchair]

I am so sorry to hear that! That's a lot of processing, too. Hopefully, if you need it, an offer comes soon. I know it's hard for some of us who have been around for a while (2012 for me) it's baffling and frustrating, and people just don't understand why? Unfortunately, until someone can crack that Ole algorithm, all we can do is wait until they pick you up. Best wishes to you, and please keep us posted. It really does help others see a trend and how it's going.

[coolcoffeecrumb]

I have been paid off since 6/8/24 and no offer.  I have had 5 with them in the 3 1/2 years I have been in business.

[Twpchair]

When that offer comes in we will probably all go nuts and celebrate! I'm looking every day for you and pulling for it!

[Twpchair]

Honestly, since last June, it's been trending higher percentage paid off or completely paid off. Not all there's been a few 70-75 % or 80s, but on the whole, it's trending higher percentage. There's so many factors that go into the economy on the whole to watching if the Feds raise the interest rate in September. All lenders are pulling up the reigns a bit. But honestly, its public knowledge square is lending more and more each quarter and year after year. We only see a small portion that posts on here. I wish more did 😪 it helps others. Being worldwide, they service so many small business owners. I know it doesn't help when you need it! I would love to see a revolving line of credit or say once you hit 80-85% you could send in a request for your account to be reviewed for a loan and get an honest answer in a timely manner and not a script response. But during a meeting, I brought that up and no go! Good luck truly. 

[Minion]

---

@Twpchair wrote:

Honestly, since last June, it's been trending higher percentage paid off or completely paid off. Not all there's been a few 70-75 % or 80s, but on the whole, it's trending higher percentage. There's so many factors that go into the economy on the whole to watching if the Feds raise the interest rate in September. All lenders are pulling up the reigns a bit. But honestly, its public knowledge square is lending more and more each quarter and year after year. We only see a small portion that posts on here. I wish more did 😪 it helps others. Being worldwide, they service so many small business owners. I know it doesn't help when you need it! I would love to see a revolving line of credit or say once you hit 80-85% you could send in a request for your account to be reviewed for a loan and get an honest answer in a timely manner and not a script response. But during a meeting, I brought that up and no go! Good luck truly. 

---

The revolving line of credit would be a huge one if Square introduced it.  Easy case cut things, this is your limit, draw from it as you need etc etc, Your limit can increase or decrease at anytime still based on your sales (overall, not just CC would be a key thing here)

[Twpchair]

😆 🤣 😂 thank you! We answered the same time! I was just scrolling through here looking for a 2nd post with no metrics for 6 months and found one, and it's that time of the day and updating, and I get sidetracked. If you happen to come across it, would you screenshot it, and I posted it in the stellar question of the week. The 2 mods are looking into it or getting it to the right person. Ps. I nominated you and 2 others for our top 50 of the year! Whenever I'm lost or don't know there are 3 of you that always help me with the answer or where to look. Thank you!

[Minion]

---

@Twpchair wrote:

😆🤣😂thank you! We answered the same time! I was just scrolling through here looking for a 2nd post with no metrics for 6 months and found one, and it's that time of the day and updating, and I get sidetracked. If you happen to come across it, would you screenshot it, and I posted it in the stellar question of the week. The 2 mods are looking into it or getting it to the right person. Ps. I nominated you and 2 others for our top 50 of the year! Whenever I'm lost or don't know there are 3 of you that always help me with the answer or where to look. Thank you!

---

No worries at all.  We're all just a bunch of sellers helping one another anyway.  I am far from a top 50 , but I appreciate your efforts!