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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[ayazbey01]

I DID NOT RECEIVE A NEW OFFER, THAT'S WHY I WROTE IT

[TheRealChipA]

@ayazbey01 Your original post did not include the word “not.”  See screen shot below. You said “have been given a new offer.” I read exactly what you wrote. If you meant something else, that’s what you should have written.

Also, can  you turn off your caps lock please? Typing in all caps is the rude equivalent of shouting. 

Sorry you haven’t gotten an offer yet. But 14 days is not a lot of time.  Once you are eligible again, you’ll get a new offer. All you can do is wait. Shouting at us here on the seller community will do absolutely no good. 

[TheRealChipA]

 

[Twpchair]

Have you been or haven't been? I'm sorry I'm jumping between pages. Ughhhhh, hun I am so sorry, and unfortunately, I am watching the trends, and July and August were slow, and boom comes September, and it was like every day all day with loans. Believe I'm just like you. I don't work for Square or have that secret algorithm, but I watch the trends. Right now, we have a budget that has to be passed or the government shuts down. 2. Watch the stock market  it's not just square. I promise you, but all lenders and banks are holding tight. I hope to come September like last year, loans were popping every day! Just hold tight and keep pushing on! I'm at 88%, so I'm right there with you! We got this! We can do it!

[Alexis321]

September? I'll have to go elsewhere and I'd really rather not because this is so much easier and honestly for my business cheaper than a bank loan.  😔 

[Twpchair]

I understand 💯 I really do please believe me been there done that and I hate to call out another company but just say Clover had told me at processing then 287k a 50k loan day one isn't true. I looked up their terms and agreements. 6 months before the 1st loan, you start from scratch and work yourself up like square. I promise you 💯 you do what is best for you and your business, but just look up their reviews and reddit, and you will see it's lending all together from banks to pos systems. I really wish you the best, and no matter what, as a small business owner, go out there and kick butt

[PFS36]

There's a local Clover salesguy that keeps hounding us to switch. If he's any indication of what their service is like, stay away. He's sleazy and pushy.

[Twpchair]

If I could I kudos star this 💯 I would! SMH they promise you the world bit please jump on their forums or reddit you start from scratch for 6mths and work up. Look up their terms and and agreements and it's right there! These are sales members promising the world and it's not in their agreements! I look them up monthly and nothing has changed! Remember the grass isn't always greener on the the other side of the fence! All lenders are holding tight right now we need to buckle down and stand strong! We can and will do this! Please don't buy into a 50k loan because many will tell you coming back to square it was a horrible mistake.  WE CAN DO THIS!

[Twpchair]

I belong to a small credit union in rural Michigan and just about covid or before I received a line of credit and 2 hours I was in and out! I don't know if you have a big bank vs a local credit union but just imo credit unions are much easier to work with and terms are great.  No matter what you do I really wish you the best! Sometimes the grass looks greener on the other side of the fence but as a business owner only YOU know what is best for you. I wish you the best of luck!

[Alexis321]

Thank you!

[Twpchair]

You are so welcome! Come Feb in Michigan, you better be sending me those same vibes! 😆 🤣 😂 

[ayazbey01]

The loan was paid on time and very properly. Normally, a new offer comes after 60 or 70 percent payment, but that did not happen to us, we are still waiting.

Completion date

06/28/24

Loan amount

$13,500.00  

All the loan was paid but no new offer was received. What is the reason?

[Twpchair]

Unfortunately, there are a few on here now completely paid off as well and like you good standing all green metrics etc. How the algorithm works believe me I wish I knew. They keep posting every day or 2 checking in. I know last week was pretty slow for people posting at least who got an offer but I have seen from Friday and Saturday and Sunday 4/5 people post that they finally got an offer. Their percentage paid back was pretty high or paid off completely. Hopefully, soon it will pick you off. Good luck to you and everyone waiting for an offer!

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[olivesageeee]

Hi Maya!

Wondering if you could give any insight on an account that's all in the green that hasn't gotten an offer? I've gotten them all in the past prior to 80%, even one at 62%. I am currently sitting at 85% in the green with no offer. On my 7th loan with Square and all of my prior loans were paid off with no issues. 

Any help is greatly appreciated, I did try to call but the automated message hung up after explaining the process. I know there's a lot of back end that goes into offers but wondering since I'm all in the green if there's anything I can do to boost my chances. I appreciate you helping in general and others on this thread, the loans are a huge help for all of us! 

Thank you! 

[Twpchair]

@Maya is so amazing and you couldn't ask for anyone better!

[olivesageeee]

She seems wonderful in helping others so I figured I would try to ask! I saw you previously hadn't been offered a loan, did you end up getting yours?

[Twpchair]

Thank you! My last loan was June of last year, and the others I turned down. I am in middle Michigan, and we had an amazing winter (warm), and our snow birds didn't head south, so it was our best winter, and in March, I turned it down. Normally, all winter I take but March I didn't  summer I usually pass and winter I'm in freak out mode and take it. I'm no different than you and watch what is going on. Thank you for the compliment, and no matter what, I will always keep it 💯 transparent! I'm just a regular user, but I've been around for a while , all of it. 

[Tyconcrete]

If you do find out please let me know I called asked them to escalate it with someone do I hope to hear back from 

[Kpramos65]

I am so stressed I have always had another offer by now but 80% paid and nothing!! No disputes my account is all green and always always paid ahead. Are they just not offering loans right now

[Healthyketo]

😫we have all been waiting! I have been paid off for almost 2 months all green and nothing. All I can do is wait. I know they are still offering cause a few have gotten some this week & last. Not sure what’s going on.