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.

[Hawaiicraves]

Aloha all

i did wake up to a offer today. I noticee last rew days it had been updating later in afternoon. I also reached a minnimum payment thresshold  3 days ago , 85% paid off on currrent loan. 

new offer is $113k , much lower than last offer. 

Good luck everyone!

[ohboi]

Great news!!! A lot lower offer?? lol that’s enough to buy a house lol!! The most I’ve ever gotten from them was 11k on processing almost 300k in our peak year. It good to see they are still rolling. Healthy Keto and others hold on tight, it’s coming !

[locksmithnick]

$11k loan on $300k sales? Something is very wrong here…. 

My last loan was $30,800 on $175k annual sales. 

[ohboi]

I never knew we were getting the short end of the stick until I saw what others were receiving. Yep 11k then it started going down to like 10k, then 9k, paying them off in like 2-3 months. Our sales are always consistent year round. Our restaurant does a tooon of card sales combined with people ordering online through the square website. 

[Jjpainting]

Yeah that is low. My last loan was $14,700 with about $130k processing. I’m at 92% paid off and still nothing. 

[Jjpainting]

I usually hit the min payment within a couple weeks. My past loans have come right in the middle of the two month payment or right before it’s due, even though my min would be paid well prior to that lol. 

Did you have high sales the day prior or day of offer?

[thehealingplant]

Me too. Mine were consistently around 2:30/2:45p and nothing so far today so maybe for both of us?

[locksmithnick]

I’m at 69%. I probably won’t hit 75% until the first week of August but I’ll let yall know what happens. 

[Jjpainting]

Well not for me.  I just checked and mine updated an hour ago. Nothing.  I’ve seen quite a few posts on here from people whose last loans came end of last year, where the offers came at a lower percentage and almost double, who are in my shoes and not getting nothing. I really thought I would have had least gotten an offer when I got the actually loan amount paid off with just the fee remaining…but I almost got half of that even paid off. 

[thehealingplant]

Mine updated about 23 minutes ago. Praying for that 7p offer.

[Jjpainting]

So my last 3 loan offers were as followed. $7150, $8500, $14700. This one is $6300 😂.  Should I even take it?

[jackiebee12]

what do you mean by yours updated? as in your payment “for the day” or your status updated about when they last checked to see if you were eligible? 

i’ve never watched mine this closely so i don’t remember if my others came the same day that it updated and said i wasn’t eligible. i’ve been all green for well over a month and it unit went to needs work when i was gone for 2 weeks on vacation 

[Jjpainting]

I actually just got an offer!

[ohboi]

Let’s gooooo!!! Beers on you tonight! Lol

[Jjpainting]

Haha. After it pays off what I owe on my previous loan, it’s just above $4900.  Repayment went down from 17.25% to 12.5%. This would be paid off within 2 months 

[thehealingplant]

We got one too! Exact same amount and terms!

[Healthyketo]

I’m so happy for you to!!! 🎉

pray for me! 🙏🙏 

[Jjpainting]

I’m praying for you. You and healing were the ones I’ve been praying for!  Us 3 have been going back and forth on here for a while 

[Healthyketo]

Thank you! I’m just excited that things are moving along! Hopefully a lot of us waiting are next in line 🙏

[Jjpainting]

Are you being serious? Lol

[thehealingplant]

Dead serious. So happy for both of us!

Wishing HealthyKeto and everyone else the best of luck next!