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 

[TheRealChipA]

Hey @ayazbey01.  Congratulations.  14 days to get a new offer is not bad at all.

[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]

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