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]

😆 🤣 😂 no offersville, you are correct there! I was laughing at our new hangout place 🤣 in all time here. I don't think I have ever seen this. Many paid off, and months paid off, and 1-3mths are and still waiting. That's how bad it's been trending, and hopefully, that changes very soon. Good luck to everyone waiting for an offer and it looks like we are riding this thing out

[Twpchair]

For the most part, trending is lower than previous loans. Percentages have been lower as well for most not all of course just going by the trends. My last offer was 1k more than my previous and I was at 91% paid off so that extra 1k pretty much paid off the previous loan. The only good thing with the higher percentage paid off you get more of your new loan and not paying off 25/30% of an old loan and you get the majority of the loan. Thank you again for sharing as you see the amount waiting and questions. I really appreciate that honesty. That should help others as well! 

[Twpchair]

Congratulations ❤️ 🎊 👏 I appreciate you so much for posting and sharing this information. Unfortunately, there have been a lot of people with the half offer. Hopefully, it helps, and the rest you got this anyhow. Nobody knows your business better than you! Tighten up those boot straps and get ready 💪 without all of us worldwide working 24/7. This world would be lost if we disappeared. It's up to us, and your door is open, and you are doing business, and that's all that matters now. One day at a time and knock it out. Congratulations again!

[Tyconcrete]

So you generally update first then a offer comes .after update. 

[Twpchair]

Yes, I updated between 1-3 pm. Eastern time. All my offers have come between 5pm-9pm roughly. I tend to have my offers on a Saturday. I'm retail furniture, and Friday and Saturday are crazy busy even on Sunday. I think those huge days kick it in. I watch on here for what's trending and other people who post what %, rate, higher offer or lower. We are all unique and different, and my offer might be 1k higher than the last one, and you might get half of your last offer. Hopefully, it is at least the same or higher. But most are trending lower or stayed the same. Not all but on the whole. I've been with Square since 2012, I believe, and I tried to tell people in June Hunker Down that it's going to be a tough summer. We are trending the same as last summer. About September, the market mellowed out and boomed off and ran with loans. Hopefully, things mellow in September again, but we didn't have an election either, and that is going to be a huge watch, and see, I'm afraid. You got this! 

[Tyconcrete]

I went back checked my previous loans 3 offers were made a Sunday and 3 were made on a teusday so not sure if that's  when and if they do send me one for myself speaking 

[Twpchair]

I don't know either, but that's why I didn't answer back right away. Mine all Saturday and Thursday?? Wednesday is a really good steady day, but Tuesday is the slowest day of the week?? No other days, and I've been with Square before loans were a thing. I believe but don't hold it to me. 2014 started the pilot loans going out. My first loan is 1k and then up in offers and never lower again. My last offer was 1k higher than the previous loan, and before that, the same offer was the last one. But at 91% paid off, and in March, with our busiest and warmest winter in Michigan, I still took it because the rate dropped big time. I had a feeling it was going to be rough this summer, and unfortunately, I believe that until the election is over. 

[Tyconcrete]

Been with square for now 10 years 5 old store sold and this new one 5 years .first off here at new location was 6k .I didn't take didn't need it .then 16k took 24k  36k 46k 54k 69k .so 12k left on the 69k all others paid early .so either way will get thur it .but It sure would make it a heck a lot easier  . If it get to bad I have option to go to bank get a loan but at lot more .and don't want to tie my restaurant up with my land I owne my building so .could be better and a lot worse also .

[Twpchair]

so true, and that is all we can do is push through it. I belong to a small 8-12 credit union, and they are so much easier to work with and my paperwork zero! I asked before I left to leave, and she said no. They had all my business information already and can look at all my income information right there. About an hour later, I was done and out the door. This was prior to covid, so 6% wasn't too bad for it. She said I could really save if I did a business credit card for a year and then do the line of credit but it meant coming back again and with me and my mind never shutting down I would be using that one instead of my Chase! I know a couple on here really could use it with getting new equipment that is broken and needed bad for business. Hopefully, we should see something soon! 

[Twpchair]

I forgot to tell you, welcome to the lonely, frustrated, confused, what in the world is going on club! I guess I will be seeing you until the good Ole algorithm kicks in, and I hope it is soon! We have a great group of people and a lot who are very smart and have been around for a bit. I don't work for Square. I'm a retail furniture store owner, but I do help out in the most desperate club and try to calm the massive. Usually, most people know they scroll down and see it's not great right now, but honestly, I'm not kidding. The grass is no greener with other POS that do loans. They are jumping ships, too. Good luck to you and everyone waiting! If you have any questions, just yell unless it's where my offer 🤔 🙃 unfortunately I don't control that Ole algorithm, and I let that thing wide open!

[Twpchair]

I know your offer was lower than anticipated but since around last June I haven't seen to many go from double to triple like a few years ago. I was happy to see 3/4 of you finally get an offer. Hopefully, this continues! 

[Twpchair]

For myself since the metrics came into play I usually update 1-3 pm eastern time all of my offers around 7pm-10pm. That's just my personal experience. 

[Healthyketo]

Hope everyone is doing well today. Doing a pop up market today to boost sales. Hopefully today is my day! Had a great morning, hoping for an even better afternoon! Wish me luck guys! 🙏

[itisnotjustpiza]

Good luck!  We are over here still waiting as well.

[BodyLabPhilly]

Good luck!   I’m at 88% and have gotten to the point that I’ve paid back all of the loan amount, just the fee amount is left.  Hoping it triggers an offer today.  

[ls725]

I hope you get an offer, I am at 99% with like $20 left... no offer yet haha.

[Twpchair]

Finally, some movement! Good luck to everyone waiting! 

[ls725]

I wish it was moving for me 😛

[Twpchair]

It's been moving this week finally! Good luck to you and everyone waiting!

[Twpchair]

Good luck! Hopefully, it kicks in for you!

[ls725]

100% paid off now, everything in the green, so we'll see, I mean there's nothing I can work towards except keep making sales lol.