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.

[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]

Unfortunately, you are right. We can't get that algorithm controlled! Just keep plugging is all we can do! Good luck to you and everyone waiting!

[TaylorA92]

Im a consistent lurker but not a common poster. I’m waiting for my 7th loan. Each one has progressively gotten a higher payoff. My last loan I got a new offer at 79%. I’m currently at 82% with a busy weekend. I will update everyone on what happens. I am in entertainment. Each loan has gone up in value so I will let you know if it drops this time as it seems that’s the common theme. We process near 300k a year.

[Twpchair]

Good luck! It's been trending higher percentage paid back to completely paid off. A few in 80s though. Thank you so much for letting everyone know. 

[PFS36]

Good morning,  y'all! Maybe one of you can help. We're in the restaurant industry but our hours are only 4 days a week.  With that being said, by Wednesday,  our processing goes to "needs work " . We do have our hours of operation listed in our dashboard. We're at 83% on a 15,500 loan which is our second loan. Does anyone else have a dip in processing each week? I apologize for the rambling,  this is my first time posting. 

[Twpchair]

Unfortunately, with just myself, if I go vacation or sick and I'm not swiping, it goes into needs work mode. The system seems to operate 24/7 and doesn't adjust to close days, vacation, etc. We're open 7 days a week until winter. we go to 5 days a week, and I see the dip and then boom right back up when I start processing again. That's been my experience since the metrics kicked in. 

[PFS36]

Thank you 😊  ! You're like the Community Guru, here. Our business is in a small town,  so most of the folks are or have been on vacation,  so our business has been slow this month.  Hopefully we'll get some great news soon and I hope everyone else does as well. 

[Twpchair]

You are welcome! A few cleared out this last week and weekend hopefully, it'll pick up again! 

[Healthyketo]

Here's to a NEW week waiting for an offer. I am happy that my metrics are all back to good standing! I had a great weekend of processing! Going to have another this week. I am Hoping and praying I get an offer soon. I messaged square last night but once again got the same email  this morning they send out to everyone that asks questions about the loans. Praying for a miracle this weeK! Hope everyone has a great selling week! 

[PFS36]

I've been following you and a few others,  I wish you the best!

[Sumtin2Eat]

4th loan, 91% paid off, good across the board over 300k Credit annual processing on pace for $400k plus and still no offer...

[Robgrey]

13th loan 

paid back 62% percent in 4.5 months 

processing over 800k per year. Open 7 days a week. Hoping for an offer! 

[Twpchair]

It's been trending higher percentage paid back or completely paid off. Hold tight, and hopefully, more get offers. It's been picking up some. Good luck!

[Sumtin2Eat]

100% paid off as of this evening.. 4th loan complete.. we will see if I get an offer in the next week.. Green across the board..300k+ processing annually 

[Healthyketo]

Seems a bit quiet lately. Guessing it’s been a slow week with loans 🤔 anyone got any great news lately? Still waiting on mine. Hopefully soon! Wishing everyone luck! 

[PFS36]

Haven't seen anything,  either 😕 mine just updated,  everything in green but at 83% and only in the loan at 5 months.  Hope you get one, soon! Maybe today is our day 😊

[Twpchair]

Last Friday until Monday, it was moving pretty well, and now 💥 Boom slowed down again. I hope the trend from last year kicks in. Very slow June and July and part of early August. All of sudden, it took off a people posting every day about an offer. I watch the trends, and they have been pretty much the same. Banking and lenders are waiting to see if they raise the interest rate again and also, a budget they pushed back till late August to September! That's last year's budget, and October is a new budget to deal with. When you see people post, their banks turned them down with a line of credit for 20k to 10k. They are holding tight! Just imo but I follow both. The good Ole days of 1st loan to now has drastically dropped. It's NOT just square other POS companies their clients or user are saying the same thing! If it was up to me in my Oprah voice you get loan you get a loan! 😆 🤣 😂 honestly though all that are waiting good luck really. 

[Twpchair]

Also, I  receive about 3-4 offers come in and last June it's wasn't what I expected and 1/4 of last loan. I turned it down. We have to tightening up and keep pushing forward! It use to be that small businesses was the back bone of America. Well, show it!

[itisnotjustpiza]

We are still waiting as well.  However we are also slow.  Everything is still green. 

[Twpchair]

Are you paid off or what % are at? If you can swip one card a day and even push cards over cash to keep you in all green, it is good! I know we are all used to cash is king, but if you need that offer sooner than later, gotta kick in some swiping activities. 

[itisnotjustpiza]

We have been 100% since June.  All green.  Higher sales over all but slow right now.  Our first year at this location, approaching a year in September.  Everything is above average when I look at eligibility except for weekly processing volume.  It is lower, still green.   

[PFS36]

Looks like us food folks not getting the offer today 😕 we've only done 170k so far this year in cc processing and we're only open 3.5 days a week.