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.

[SPPhotography1]

January 2nd 2024 and 80% of 9th loan currently re-paid. All metrics in green and had a record sales year in 2023 while exceeding previous years sales in every single month of 2023. Customer numbers and individual sales are all way up as well. Never waited this long for another loan offer, especially when we’ve been doing this well. I know many have been complaining about square capital (square loans) in 2023.. I’m not sure what has happened or if it’s just the economy and bank systems tightening their restrictions, but there is definitely an issue. I understand that Square is a billion dollar company, but for the amount of money that I and others give to square, they have terrible customer service and support. I am now in speaking with Clover Processing and am probably going to move forward with them if I don’t receive another loan offer very soon. Clover’s business loan process seems to be much simpler with clear cut requirements and easier access. I’ve been with Square for over 10 years and we’ve been as perfect of a partner as possible with not a single refund or complaint of any kind in all of that time, it’s terrible that we would have to leave, but for the sake of our business, we may need to

move on. 

[ddlbb]

Did you ever get an offer?

[moxiemavenandco]

I saw someone say they were splitting their processing between square & clover in order to be considered for a loan with clover, however am terrified to show any decrease in sales via square bc I’m utilizing another pos platform 😅

[Jjpainting]

I think when you sign for a loan, you’re agreeing to do all of your processing through square. I might be wrong but I think that’s in the terms.  I would be scared to post that lol

[Twpchair]

Honestly, I would have to go back and look myself? We're so different on how we take payments. That's why I always have my support team, so I'm not giving you accurate or current for the "day" information.  I have a square cash register and a second check out with the square terminal and receipt. So, like you, if it is a cash app or all the other payment types we don't use. It's cash,check all cards and tap and pay. That's why it's so hard. But you really do need to be paid once that customer pays and the loan part is taken 😒 you don't have to wait till the job is done or the last 50% is paid. That part is in your account and settings. I know on my husband's customer orders sometimes he gets 16 weeks out and I let our customers know and they are OK with it but would I be ok waiting for all those deposits for 16 weeks in between? NO! So we need to make sure your payment and settings is set right for deposits and invoices. 

[Jjpainting]

when I do quotes, 90% are accepted the day I send them to the customer and deposit paid. I tel my customers that I won’t put them on my schedule unless it is paid.  95% of my customers pay the balance the day I complete the job.  The other 5% might take a day or two.  I’m not sure I understand what settings can be changed. When a customer pays me, the money is in my square checking account within a couple minutes no matter what time they pay.  I only do 2-7 transactions per week with the average week being $4000-5000. 

this week could end up being a $10,000 week if this one customer agrees to my quote which he may or may not.  Some customers shop around for better prices but not many as my work is all from referrals so there’s a lot of trust. Probably half my customers pay in full upfront now. If a customer asks for any kind of discount I give em 10% off labor for payment up front in full. 

[Jjpainting]

I know square loans out more money than ever each year. I personal belief is that you’re not seeing loans generate until more around the 85-90% range because more and more people, since Covid, have begun starting their own business. That was definitely the case with me. After my job was shut down, I went back into painting and have never looked back and love it. And square has been a huge help with offering loans, which I had no idea they even did until i received my first offer April last year. I just chose them cause they were one of the first ones that showed up when googling for a payment processor when I wanted to begin accepting credit/debit card payments. 

[Alexis321]

I've only recently received a loan through square. Paid it off and haven't received a new offer at all. I thought I might but didn't.  I guess it's whenever they want to.

[Sumtin2Eat]

How long ago did you pay off? Everything in green?

[Alexis321]

I paid it off a couple weeks ago. Everything is in green. No issues there.

[Healthyketo]

Been paid off for over a month metrics all green and no offer in sight. Very depressing! I need one so bad right now to give my business a boost but still nothing. 

[Alexis321]

It's weird that they pick and choose. Im.not sure how it works or how often they check accounts. They say daily but I'm not sure.

[Healthyketo]

Very! A few get an offer that are not paid off but the ones who are paid and have all green metrics nothing. In my opinion having it paid off should be a plus to get an instant offer 

[Alexis321]

I agree there.

[itisnotjustpiza]

Same Here.  We have been paid off over a month now and no new offer.  Several loans before.  All green.  It's discouraging. 

[Twpchair]

I'm not sure, but since I've been around and paying attention, I don't think I've seen this many paid off and no new offers? I know Square is worldwide, and not everyone posts here. Hopefully, like summer August/September hit and the offers were coming out of everywhere! Good luck to you and everyone waiting!

[Twpchair]

Unfortunately, right now we are seeing more and more completely paid off or a higher percentage paid back. Good luck to you and please keep us posted. 

[Stefanieblue]

I wish I had answers, but I’m in the same boat.  I’ve been with square for about 12 years and the loans has helped my salon business in every way. I’m at 86% paid and no new offers in sight…I check twice a day but lately it seems like I have to be paid in full before any offers come… so I guess that’s their algorithm for most. Hopefully they are reading our comments and complaints   I hope they know for those that’s been with square for over 10 years has invested a lot into them to keep them up and running…

[ddlbb]

Did you ever get an offer?

[Stefanieblue]

Not yet... still waiting ....