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.

[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]

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@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. 

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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]

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@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!

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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!

[Twpchair]

When I scream help there you are! So yeah, we got to pick our 3, and I did! Thank you! I get in cool and Mello mode to full-blown panic in a second! 😆 🤣 😂 

[Minion]

🤣Oh we've all been there! You aren't alone that's for sure!

[Jjpainting]

My offers last August and November came in at 80% and 66% respectively. I think it’s all varies on the company 

[ls725]

92% on my 2nd loan, all in the green, no offers at all, biggest sales we've had past 2 months, business is only half a year old and we've been processing like crazy, our income is really really good for a new business. I think the 3rd offer might be a fairy tale, might just cry if it actually pops up 🤣

[Twpchair]

Congratulations on the new business! Way to go and kicking it! I ❤️ it! Can I ask what is that you do? We have some amazing groups but they are broke down or geared towards your line of business! Wow there are a lot of new start ups! Let's get this mom and pops businesses!

[ls725]

General computer, phone repair, we do have more experience than most shops in town which is why we are able to succeed, we offer services that other shops would usually turn down due to the complexity of the repair.

EDIT: on another note, it seems that it would be bad business to not lock in a business with a loan before it's fully paid off? (for square that is)

Once it ends and you see the full amount coming in from every transaction which daily for me is about 300-500 that would be going to my company rather than a loan payment. Either way, the money would be manageable.

Square Loans are nice nonetheless, let's you manage your income a little better, ahead of time, like dropping a whole year of paid rent for your shop for example, and then saving up all the extra income so by the time your rent payment is back up you're already stacked.

Not to mention the processing fees! Square is making extra money every month on top of the loan by keeping you locked in, everybody wins! I hope the Loan AI makes us the chosen ones next 😂.

[Jjpainting]

So true. I average paying about $550 per day on loan repayments.  That doesn’t bother me too much as every loan helps expand my business. But the loan fees add up. I’m 88% paid off on my fourth loan. My first loan came April 5th of last year, second was April 27th, then third August and current loan came last November. I just added up the fees and that’s $5100 in just over a year. I would love a new loan offer soon, but if they don’t offer one until this one is paid off, I’ll probably just put the 17% or so in a savings account. Within 4-5 months, I could the same amount saved as a loan. 

But it does make sense for square to offer every business that they know have a history of paying back quickly.  It’s gotta be there largest source of income I would think.  

[thehealingplant]

Our current also came end of last November as well and we don't do quite as much per day but we're at almost 76% on ours. This one is our 10th and double our last as well. Seems like we're in line for the decreased amount when it does come around (if it does.)
Sadly by the time we find out we may be buried by local competitors as we've got some high dollar spending big companies around us that we're struggling to keep up with. So for us the money would immediately go to some serious marketing.

[Jjpainting]

Yeah i anticipate the same offer, maybe a little more or less (my processing sales for the previous year prior to that last offer were only $128k, right now I’m at $148k for the previous year. 

Keep me posted on your next offer. I should reach the 90% mark paid off by the end of the week. My last offer that was almost double came when the prior loan was only 66% paid back