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]

That’s funny.  Well good for you!  It’s something at least. Hoping our next ones will go back up to what they were

[itisnotjustpiza]

Congrats to you both!  We updated hours ago so today is not our day.  

[Robgrey]

Awesome! Congratulations!

I am hoping for a busy weekend with an offer!

[Twpchair]

Yeeeeesss! Let's keep this rolling!

[Jjpainting]

I’m thinking about maybe making an additional $500-1000 payment per week on here or so just to see what happens.  I’m going to be at around 15% after today. Could be at 25% in the following day or two actually.  What are your thoughts on trying this?  

[Twpchair]

Let's get this rolling! Congrats 👏 and I want this board empty!

[Healthyketo]

CONGRATS!!!!!🎉  haven’t updated today but haven’t had any sales today. Im so happy you received one I actually prayed for you and the others this morning. Hopefully others will receive as well!  Hopefully mine will come to I have a market this weekend and sales will be good so 🙏🙏

[Jjpainting]

Yeah there are like 4 or 5 of us who have been consistently giving each other updates. But $6300 with $150k in sales compared to my last one of $14700 at $128k in sales. That’s logical lol. 

[Jjpainting]

But I definitely could use it so I applied. It’s pending.  I have never had an application take longer than like a half hour so illl keep you posted if/when it gets approved 

[Jjpainting]

Approved in 5 min and in my account. 

[BWcreamery]

That’s awesome! Glad to see some movement on your end! 

[Jjpainting]

Thank you. Even with this one being 5% lower payback than last one, it will probably be paid back in 3-4 months in full. But I’m hoping it ends up being like last year to where I had an $8300 loan and at 66% got offered $14700. I should be right around 15% paid off after today. That took me what like 3 days lol 

[BWcreamery]

That’s awesome! That’s a good chunk of the loan paid off fast! Lol

Im at 99% now with $83 left on my loan. It was my biggest one yet but we are closed Sunday and Monday so we will see what happens next week! 

[ls725]

This thread is getting funny, next thing you know "I'm not getting a square loan because of my ethnicity" 🤣.

[thehealingplant]

Respectfully I'm not sure what's funny about people comparing notes on the type of business they're in. All a lot of us can do is compare notes and see what lines up because there is such a lack of transparency from Square in regards to anything.

[ls725]

There really is a lack of transparency, I agree with you on that, I feel the same way as you guys, I just think it's funny how far it has gone with us all trying to figure out the algorithm in the background.

[papaya19]

Do you all typically get loan offers right after your dashboard updates or is it a little bit afterwards? 

[Jjpainting]

This is a good question as I have no idea. This is the first time I’ve actually been looking daily for an offer. My last offer could have been up for a couple days before I realized it cause I want expecting one at 66%. 

[Twpchair]

For myself only I usually update 1-3 pm Eastern time, all my offers, since the metrics came into play and offers were 7-10pm Eastern time. That's just me. 

[olivesageeee]

I was offered and funded today! Unfortunately it was half of the amount, but everything helps!

[Alexis321]

Nice to hear!