New Square Loan in 2024

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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]

@Jjpainting I forgot a couple of things. It's early and 1st cup of coffee. He asked if you have it set up for email when the customer pays the deposit instead of stalking your account and he said it is easier to track to make sure you're green metrics are accurate. That has been an issue lately and was addressed to be fixed. When you have people posting 30-50 off daily and if that Ole algorithm isn't going to pick that out. Honestly, I know your line of work is different and I don't know or would hope people didn't or don't stiff you especially after paying 50% down.  The ones we do we haven't ever but it's a kitchen table or cabinets they want that. But my husband friend is a logger and ughhhhh,  he does the 50% down and logs it, cuts it, plains and kiln dries it and boom 4-7mths later he's tracking them down smh. He invoices nope. I would go nuts really. 

[Twpchair]

1. Where are you located?

2. What do you have your cut-off time set for?  All of that plays a factor. Once I know where you are and the time zone, it could be just adjusting your cut-off or deposit time. Others are actually their cards, the customer, and how or when they cut off as well. Even though it's good and the money is there and "technically" gone from their card, it might not actually physically pull until 8 pm. Kinda like my credit union with actual funds/pending. I actually had to verify this many years ago, and Chase is a big one that clears right midnight 

[Jjpainting]

I’ve read something on squares site before regarding cut off times…is that for when using their P.O.S. Software/computers?  All my sales are through invoice and I’ve never seen anything about this in my account or account settings about cutoff times. Just curious about that is all 

[Twpchair]

Yes! In your account settings, there is a time you can put in. Mine is 5pm eastern time. Remember, 0square is West Coast. So some do 8pm eastern 5pm their time. I only do invoices for custom orders. Most of mine are in store purchases. So invoices are hard when the customer pays it. Honestly, myself for our furniture orders it's after dinner, and I sit down for the night about 7/8 pm. And I pay my bills then. Imo every bank/card is different for their cut-off time. I would guess just, imo it would be the next day. 🤷 again you need to see how you have it set to be paid if it's daily or something else. 

[itisnotjustpiza]

This makes sense except it appears and went to zero.  We are EST, midwest, Ohio.  

[Twpchair]

I watched it last summer from June till August there was hardly any one that at least post here about an offer or slight chance is was way below their previous offer. Then in September and one boom it picked up. I watch the trends and how it's going and it's looking like last summer is all I'm saying. I don't work for square so if they idle it back like it states above or watch the market like it states above. This could be a factor 🤔 this is just imo only hun. I don't know why or how it's algorithm works if I did you get a loan every stable business making money year after would get a loan! I'm watching businesses double and triple sales and to me that's a no brainer they are kicking it and yet paid off and still waiting? There's a few others that will jump in that have been around for some time now and they pop in about 70-75% and say well I be back around 90% I guess. My last offer was 91% and 1k more than my previous. I guess I should be lucky and not 3x less like above posted or just enough to pay off the previous loan and 0.00 left? That's a new one for me I've never seen that before. 

[Twpchair]

I'm sorry I missed this one. What went to zero? I think I responded to you about invoices. I wanted to ask someone in the group that does invoices daily compared to myself. They said that 50% should be in your account once the customer pays it and the loan portion will come off to. The same with the remaining 50% once they pay it and it processes you should be paid and again the portion of that applies to your loan. He said definitely check your settings on how you choose to get paid. We're the same time zone. I don't know if 8pm would be a better option than say mine at 5pm. I have transaction that roll over to the next day all the time but it's there! We close at 5pm my cut off time but retail they come in at 4:55pm all the time and shop and might not be done till 6pm. My funds hit like 5:05pm anything else goes for tomorrow. If you need anything else let me know I can ask him for a screenshot of his dashboard and settings. 

[B-dot]

So "buddy" and I both got offers yesterday.

My offer came in at 90% and the amount was half of my last offer.  The balance owing on the last loan eats up 30% of the new loan offer, so in the end only 70% of it would be deposited.  Keep in mind my sales since the last loan came into effect are 21% higher.  To offer a $23,000 loan with $1mil + in sales is rather insulting (note:  I absolutely do not need the loan .. but paying 8% to make 45-50% is a no brainer investment, so I take them!).  My fear is if I reject this offer and wait for another, that one either won't come at all, or will be even lower.  Do I take the offer, or just give up??

Now "buddy" on the other end, just ended his relationship with Square this morning because of his latest offer:  $400,000 in sales so far in 2024....his loan offer is for EXACTLY what he owes on his current loan!  Yes, his offer is only 9% of his previous loan!!  So if he takes the loan, the deposit into his account would be $0.00, but they charge him an 8% fee!!!

Two insulting offers for him.  He's done

I think I'm done, too

[itisnotjustpiza]

I am so sorry.  It is very insulting.  I do believe it is computer generated and possibly maybe some things are being worked out.  I have wondered if not only the economy is coming into play but squares credit card product being offered to some.  I am not eligible for this but thought maybe just maybe it was going to be an option at some point. 

[Twpchair]

If you read up at the top where the Mod pin the post about loans. The section on the market and economy or close to those words do. Even if you, myself, and thousands of others are doing great and sales up overall lending, and banks are getting a little leary right now. In September, the Feds decide to raise rates again or not. Also, the budget wasn't passed in February. I believe it was, and that is due in September, too. If they don't do something, I don't believe they can push it back again with the government's fiscal year starting in October. They are not even close on numbers. Lenders and banks watch this, so you are right. A lot comes into play, and we have no clue about it. 

[ls725]

By any chance, have you called Square Loans? I think they have a hidden “soft ban” on loans depending on how the customer interacted with Square Loans department on the phone. I truly believe if you call and somehow trigger their “high-risk” alarm they cut you off from loans.

[Lynix123]

Do you mind me asking how much was your last loan? How many average daily transactions you do? The reason I’m asking is we do process same amount (900k) yearly. My current loan is $120k and 60% paid off currently. I’m trying to picture the next loan amount will be. Thanks in advance! 

[Kursat]

I've got 2 locations with Square. One was paid off 7 weeks ago and brings about 250k/year in Card Sales, still no offer for this location. Second one was paid off 2 weeks ago and brings around 100k/year, Got offer for $3150. 3 times less than my last loan. Both locations process payments daily. There is no math behind this that make any sense. I reached them on chat, was given a number to call. I called the number. If I pressed the button according to my needs, It would say the generic ''eligibility factors...'' and hang up. After trying multiple combination to reach a real person, I scheduled a call back so they could call me. They called me after 90 mins or so to say the same generic line what the both said. I laughed, thanked and hang up. Wasted about 3 hours.

I heard Square laying off a lot of people and I strongly hope they start from the most useless Loan department. They seem to hire anyone can say ''Eligibility Factors...'' No respect or understanding for Costumer. 

For everyone waiting for an offer, good luck but No one knows jack about nothing in this company. I wouldn't be shocked If someone from Loan department just copy-paste the'' Eligibility Factor''  under this comment. I suspect they even really read here or they are just bots. 

[itisnotjustpiza]

I noticed our previous loans were closed or paid off between 6-8months in.  We have had 14 loans with our small location that we shut down.  The 14th loan was transferred to the new location which has had 1 loan after paying off the previous locations loan.  We process much more here than the first location so it was paid in 4 months.  We had an unusual week for the last part of our loan.  We shut down normal operations and serviced large customers.  Something we had not done in the past.  It finished off our loan with the processing.  It would look a little unusual because they were large transactions verses our usual smaller ones. 

[Twpchair]

Nice to hear you tried something new and it worked! Believe me if square had any concerns about it they would reach out. I had one big custom order and they had a tree go through their roof and needed all custom built cabinets upper and lowers and an island and table set built to match. No worries I ran that card for 9k then I think this triggered it she also bought items and used the same card for a little over 2k went right through no problem and my bank account. The next morning I wake up to email regarding the transaction and it looked suspicious and call this number. I did and she asked a ton of questions and I thought oh boy. I sent her the order with the customer's name and number she put me on hold and I knew she was calling her. A few minutes later she came back all good to go.

[Jjpainting]

I had one large transaction one time that went through but forced a review where I needed to fill out a form online with customers information and what the purchase was for. Froze my checking account for two days. 

[locksmithnick]

Good evening, everyone!

I’m posting here mainly to inform and compare loans with other merchants. Some info about my relationship with Square that I believe matters quite a bit when getting a loan offer will be included. 

I have used Square exclusively since 2013. I was in the pilot program for Square Capital in 2014 with a small $900 loan. Since then, I have received 20 (!) Square Loans. I have received them as early as 55% paid, but that’s been YEARS ago. I have also gone completely paid, but I believe this one occasion was due to me making pre payments on the loan. Typically, my loans are offered at 75%, like clockwork. 

My most recent loan was in November. A $30,800 offer and my yearly sales were $176,000 for 2023. I am now sitting at 67% paid, and yearly sales sitting at just under $120,000 from 1/1 to today. A 40% increase over last year.

I will update when I receive the next offer. If my calculations are correct, I’m guessing 1st week of August.

[Jjpainting]

I wish I would get an offer at around 17% of my annual sales. My current one is around 11% of what my yearly sales at that time. I just hit 88% paid today. If these two sales proposals go through today or tomorrow that I quoted today, I’ll be at 96% paid off which would be a huge couple of days in sales for me and I would think would be enough to trigger a loan offer 🤞

[locksmithnick]

I want to believe that I get better treatment than a lot of other sellers simply based off loan history and just business history in general with Square. While my total dollar amount is only $175-200k, which is peanuts to a lot of other sellers, I have a literal perfect transaction history with no charge backs or disputes or anything like that going back a decade. And while I don’t do as many transactions per day as something like a restaurant would, I still average 5-10 transactions per day, every day, since 2013. 

[Jjpainting]

Yeah your history alone should be enough for instant loans at 75%. I started my business two years ago and joined square in October of 2022.  I only do about 175 transactions per year which accounts for 75% of all sales. But I’m a painter, and my average sale is almost $2000 (ranges betweeen $100 and $10,000) with an average card sale of almost $1000. That’s cause I request a 50% deposit. But Im now on my 4th loan in just over a year. First one offered was late April last year which was $2500. So that took 3 weeks to pay off. Then they went up to $7500 (offered when first was 100% paid off) then  $8500 offered at 80% paid off then $14,700 at 66%. So based on that I figured my next offer would be between 66-80%. Nope. 

Anyhoo wish you the best of luck with an offer. What’s your current percentage of sales that goes to your loan.  Each time my loan went up, so did the percentage, I’m currently at 17.25%, which I don’t mind at all but I’ve been seeing more people post about loan offers being much lower with lower payback percentages.  

[Twpchair]

Good luck, and thank you for posting an update and definitely share when you get an offer!