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.

[Jjpainting]

If anyone should have gotten one, it should be you if you’re the one 100% paid. Everyday when I see that you haven’t gotten one leaves me in total disbelief. Did that account manager do anything for you yet?

[thehealingplant]

Nope that's HealthyKeto who I feel absolutely awful for as well. We hit 78% today but we're about to surpass the amount that was used from this loan to pay off our last which means we're in line (I'm assuming) for no offer or a smaller one. I'm just hoping something is in the pipe because we will have to explore the other courters if it doesn't. Not because we want to but there's only so long we can sustain for where we're at now.

WIshing you the best as well by the way!

[Jjpainting]

Yeah I’m down to $1403 left to owe only, and around $3300 of this loan was used to pay rhis loan so yeah I see a smaller one coming as well.  Hell, even the loan prior to that used closed to $1700 to pay back the prior loan. Like everyone, my sales are up so in theory I should get a larger loan. I just want someone to explain how their algorithm determines who they make wait longer, or who they give less to.  When I went from $8350 loan up to this current loan of $14,700, it was in November and last November was 13 months that we started with square and started my business. So if you look at just comparing last November to the previous November we increased processing $200 or 300%. This is my busiest time of year and being that I can’t find good help, that puts a cap on the amount I can process as I can only do so much work 

[Healthyketo]

Friday will be 3 weeks paid off and no offer my account actually now says processing volume “needs work” which is so frustrating. I have honestly gave up. I’m not even checking as often anymore and just letting it happen when it happens.  Trying to figure out how to make more sales and do more farmers markets and pop up events just to make that much extra money. I did recently add the saving account. I was thinking maybe I shouldn’t have linked my bank a few months ago maybe I would have had an offer by now. But not sure if that makes a difference. I don’t know this algorithm is just unpredictable. 

[olivesageeee]

I’ve been getting loans for 2-3 years and I’ve always been offered before or at 80%! Currently at 84% with no account issues and still no offers. Super sad over it, was hoping to invest in some new gear before wedding season and was hoping this thread wasn’t going to be my case, but seems like it is.

[Twpchair]

I am so sorry 😞.  I was hoping that when I didn't see you for a while, you got your offer. Unfortunately, it has been trending just like last summer.  It went the same way. July and early August were tough, but come September on boom 💥 it picked right up! I know your situation been there done that honestly when you feel caught between a rock and a hard place and just exhausted 😩. Hun, I don't work for Square or anything, but before you jump ship, please just look at their reviews or reddit. I do myself, and it's not just square it's lending and banks on the whole who are holding tight right now. I had one from Clover promise me an instant 1st day loan for 25k smh. No, I read their terms and six 6mths of history, and you start off like

square 1-3k loan. I really wish you the best so much I know what and how this is effecting you're business. Good luck and hopefully everyone waiting will get an offer now!

[thehealingplant]

I appreciate that and it’s not that we want to jump but almost any help at this point would go a long way. I’m just being honest but any level of transparency in process or outlook from square would be a world changer. But it’s hard to continue holding on when you feel like you’re being pushed through a revolving door waiting for a crack to sneak through while you’re just being played the same music over and over again.

[papaya19]

Unfortunately I still have yet to receive an offer and I’m losing hope. No matter the offer, I know It is going to be beneficial for our business and we really need it. Please send prayers our way please! We are at 84% paid off and all metrics still in green. 

[olivesageeee]

Same! Always been offered before 80%, my last one at 62%. No issues on my account. Currently at 84% and hoping hoping it comes soon. Good luck! 

[MrBond705]

Same here all green and over 85% paid

[Healthyketo]

Hoping for good news today. For any of us! 

[Jjpainting]

Well I just went from 88% up to 91% paid off.  Hoping that willl be enough to trigger a new offer today or tomorrow. I wish myself and everyone else the best of luck with an offer!

[Healthyketo]

Updated at 1:56pm and now processing volume “NEEDS WORK” I give up! 

[Swain]

This happened to me as well twice it has gone from good to needs work and back too good I’m not sure how much that affects your eligibility for it to go back-and-forth, but my processing hasn’t really changed drastically so I’m not sure why it keeps going back-and-forth

[ls725]

97% all green without any offers, I don't think I will be getting offers any time soon, I'm more excited about finishing off this loan to be honest.

[papaya19]

Does anyone have any updates today? 

[Jjpainting]

Nope not yet. My previous loans always came the day after a big sale, which I had one yesterday afternoon bringing from 88% to 91%. Hoping to get lucky today with an offer but not holding my breath. 

[ls725]

I've had huge sales this month, I'm at 56% increase in sales compared to last month so far and nothing.. lol

My increase in sales compared to the previous period is at 7,977,167.00%

when I got the first offer the sales were nothing compared to now, I hope this sorts out anyone expecting a loan because their sales increased lol.

My loan is at 98% paid.

[Twpchair]

Unfortunately, those that have received one have been trending a lower offer or the same as the previous one. I've seen just a couple higher but 1-3k higher. Those were really new to the loans as well. Second or third type loans. Good luck to everyone waiting 

[Twpchair]

Ughhhhh, fingers crossed my last offer came at 91%!!! I wish you all the best!

[Jjpainting]

Nope. No luck for me at 91%. My thing was updated around 3pm est. I think all my past loans came right around the time it updated.