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 

[Healthyketo]

Anyone gotten anything today? 😓 not seeing anyone get anything lately. 😖

[Twpchair]

It's been a slow week posting. I saw 2. One guy posted he got an offer without scrolling down I believe half of his last offer or less if I'm not mistaken but he accept over waiting to see if or when the next on would be higher. He also said his "buddy" at 70-75% paid off was offered just enough to pay off that loan and left him 0.00 for the "magical" new loan? That is the first one for me, seeing that. He didn't say if it was 15k left or higher or a lower type thing 🤷 🤔 but since I've been here or at least people posting, I've never seen that one before. He didn't take the offer to pay off the previous loan and get 0.00 and pay 8% I wouldn't either. Pay it out by transactions or pay it off yourself. You would be further ahead. 

[Hawaiicraves]

Aloha,

Wishing everyone the best in there loan issues. Seems square has without a doubt tightened up there funding requirements for now. 

I’ve used square for 3 years , we do over 950k yearly in credit card processing with square. They make a lot of money off my establishment. 
Counter service style Resturant , open 7 days. 

We have had 3 loans, first 2 paid back much quicker than square requires. 50k 112k 165k . Offer was 187k I took 165k. Been offered loans as quick as 58 percent- 70 percent complete. Currently at 84% on 165k loan. No loan offer yet.  Our metrics have always been green. 

It’s unfortunate as square loans are very convenient. I think many will see low offers if any. As others mentioned our economy dictates a lot on lending. Hopefully things start heading in a better direction soon! TRUMP🇺🇸

[Twpchair]

Good luck to you and everyone waiting for an offer! 

[locksmithnick]

Just an update. My father is also a Square user and has a long history with Square Loans/Square Capital. 

He received a new offer this morning of $25,900 on sales of $80,000 so far for this year. He was 77% paid on his last loan. 

Hope this helps!

[Jjpainting]

Thanks for the update. May I ask, what was his last loan amount?  I’m currently at $80,500 also for the year in card processing. My current loan is $14,700 and 88% paid off.  $25,000 is about the loan size I was hoping for on my next offer…which would be about the same percentage increase from my last loan which was $8500. 

[ayazbey01]

Completion date

06/28/24

Loan amount

$13,500.00   i didn't see any offer

[Jjpainting]

Well that’s pretty much in line with my situation with the previous loan amounts being similar, same amount in sales. Only difference is I’m at 88% paid with no offer yet.  But that story gives me hope. 

[goldslinger]

Well, we have had 100k this year so far and our last loan was 14,700. At 87% paid they offered me 11k. It’s insulting considering we thought the same- we would get offered 25k. We have more than doubled our sales in the three months it’s taken to pay off the 14k. Never a charge back. Nothing. I’m still seething. Haven’t taken the loan yet because I’m hoping to be offered more if I don’t take it. 

[Twpchair]

I know and I am  sorry unfortunately for over a year now that's the same trend I'm watching and have been for over a year.  Best wishes to you ❤️ and all watching 

[Jjpainting]

As soon as my hopes get better about receiving a good offer, you has to slam those hopes lol. As I read more and more posts, and try to figure out at least how some of the algorithm works for how high of a loan one should expect, the more I think that the algorithm is totally just assigning random amounts 😂. Thanks for sharing though.  I’ll keep everyone posted if I get an offer and details of it.  Currently I’m just below 89% and will be between 91-92% by tomorrow after I complete a job.  Still waiting on if another quote I sent out a couple days ago will be accepted.  I’m thinking and hoping it will, and if that happens, I’ll be up to 98% paid by tomorrow. If a loan triggers before I pay off my loan I’ll take it, if not, I might just begin putting 20% aside for all transactions…and get away from paying $5000 in loan fees per year. But I haven’t decided.  I mainly want this loan to hire a marketing firm to begin marketing my company.  I get more work than I can handle with having a couple employees.   But now after two years and getting used to running my own business for the first time, it’s time to expand, hire more people, and I want to begin getting away from the physical work and concentrate on growing my company. I’d still do all the quotes, obviously constantly checking in on my workers at different job sites and help out a couple hours here and there  and then do a final inspection, but then just work on more marketing and finding leads. Ive been a painter for many years and its starting. To effect me more and more physically as time goes on. But in order for me to do all this and be able to hire and afford qualified painters, I need to increase sales, which I need a loan for. And hoping it’s for $20k+ to pay for that and a down payment for a new work truck for employees to use.  Sorry for the rambling here, just wanted to get my thoughts out this morning as I’m exhausted from working 7 days 10 hours a day without a day off this summer, aside from when I broke my rib I needed to take a couple days off. So come on square. I still have some faith in you that you will send me a solid nice offer this week. Lol

[Twpchair]

It's seems most aren't getting huge offers like prior. Of course, everyone is different, and we are all unique with different types of business. I have seen a few go up 5k or 7k but also the much lower than they anticipated. Good luck, and hopefully, they bump it up. 

[Twpchair]

Congratulations! Nice to see it is moving!

[Twpchair]

Congratulations to him! Thanks for the update and posting!

[harajuku]

Hey everyone. I never post on here, only read but I wanted to post an update since I've been keeping up with this thread and also have been waiting impatiently for a new offer. I made prepayments on my loan to chump it down to 60% (which is normally when I see a new offer). When I didn't see new offer after weeks, I paid it down to 70% and still didn't see anything so I went ahead and paid it down to 80% because that's been the normal lately. It took about 7 days for my last payment to clear and an offer came in today. My account was reviewed around 5 pm but the offer didn't show up until later. The offer is slightly lower than my last one but I'm grateful to even have one. Hope this helps anyone still waiting for an offer. It's coming. 

[Twpchair]

Congratulations! Thank you for the update! It does help others 

[GlitzyCow]

My offer was honestly a relief after a year of stress from square. However it was 5% of my processing from my average year. The pay back went from average 12-16% down to 6.5%. Seeing what hawaiicraves was offered and very similar yearly processing I’m a bid underwhelmed with my offer being 1/4 of that. I’m happy though that I got one. I’d expect to have smaller offers with better repayment terms for anyone wanting insight. 

[Jjpainting]

Yeah I have seen a few posts of people getting much lower offers with a much lower payback amount. Then others not. May I ask what loan number you’re at?  From what I’ve noticed (I think lol) the lower offers/payback percentage ones, are companies that have had a lot of loans and been when square the longest. My memory may be off on this though. I think between loan number 1-4 (maybe 5 or 6) are when you get your largest increases as your business gets more established with square so they can see the health of your business. Like my 3rd offer which was $8500, after 2 months and paying back 66% my offer of 14700 came….like an adjustment of it should have been cause they didn’t know my growth was gonna continue every month of the year. 

So during the early months on here, if you just started your business, that’s when it grows the most as a percentage basis. Like i was going from $2-3k a month processing and within 6 months i was up to as much as $22k some months.  You’re not gonna see jumps in sales that high after later on. Your dollar amount most likely will be a larger increase but the computer algorithm might be more focused on percentage increase. Or it’s all totally random crap that only the one that created the algorithm truly understands lol. I know every businesss is different, but I’ve never seen any consistency at any point from these posts, aside from most people have to wait longer. This discussion was going on last November when I got my.almosf double offer at 66% paid off. But that 4th offer came 13 months after starting with square where they could have a larger full scale picture on my business. My sales are up 35% from last year, which I look at as amazing, bjt  that’s nothing compared to my sale increases early on when I was looking at 1000% increases over a few months. Let me know if this makes sense to anyone lol

[locksmithnick]

This isn’t really accurate. As I stated in my post, my largest loan ever was in November and that was my 20th Square Loan. My father has also had at least 10-12 loans in his time with Square and I believe his offer he received over the weekend was also his largest offer to date. 

[Jjpainting]

Yeah it was a guess. Thanks for the feedback 

[ayazbey01]

HELLO, OUR BUSINESS HAS PAID THE LOAN, 14 DAYS HAVE BEEN GIVEN A NEW OFFER