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]

Yep! I was really hoping from last night through Sunday/Monday would kick it up! I'm watching for you! Good luck really. 

[Jjpainting]

Unbelievable that you are still waiting.  I’d be switching processors by now. That’s getting ridiculous. 

that loan I just received last week, which was like less than half of the one prior, would already be 25% paid off but the loan payments from sales  didn’t begin till yesterday. Typically there’s a day or two where it doesn’t start but this was a while.  My first card sale paid for the first 4 months of min payments and paid 11% of the loan.  I’m hoping this will be like the one prior to last one where at 66% my offer was double. If my sales stay the same as last year, this loan will be paid in full in about 3 months. Almost want worth it but that’s easy to say now lol. That day it was nice to have 

[Twpchair]

I 'm going over this one as well 😪 😕 like I said before, you get a loan. She gets a loan! Just baffles me, but I watch what is going on with the whole. Do some get it 70s, yes, but the majority is higher percentage paid off to completely paid off. That's why I love it when someone posted that I just received an offer and their terms. It helps others to see a trend. Way to gooooooo my fellow Michigander!

[Healthyketo]

I know I’m so disappointed, the end of the week will be a month paid off thought about changing to another processing service but I don’t want to start over with another company and square services are really simple to Navigate and work with.  I’m just trying to understand why they can’t just specifically tell me why I’m not eligible even though all my metrics are in “good standing” wish I knew something so I can work harder on triggering an offer. It’s just so discouraging. I would try and get funding elsewhere but since I do my business banking with square (checking & savings) no one will accept those bank statements as a traditional “business bank” so I’m stuck & feel completely left in the dark because I rely on square for all my business needs. Literally applied at several places but been turned away cause they don’t accept square statements. Guess I’ll just keep waiting like everyone else on here. That’s all I can really do at this point.

[Jjpainting]

I looked into switching processors last month.  I tested stripe and clover out,

never billed anyone, but sent myself invoices cause I just wanted to see how i liked them. I love squares invoicing the best.  It’s easiest to use, and for what my customers receive when I send an invoice, it is just the best I’ve seen and easy for them to pay the invoices.  And i know one of the processors I tested, can’t remember which, cause I think there were actually 3 others, but one didn’t release the funds into your account from a card sale until the following day. Which I would absolutely never use.  Whem someone like me only does 3-10 transactions (average i think) transactions per week, with 1-2 being 3-10k, it can be essential for me to need that money instantly to purchase materials and such. Sometimes im in the middle of 5 large jobs at once with thousands of dollars in materials invested in, so its important that I have instant access. 

And I’ve tried a few times for business funding, and after disclosing my personal credit score (low but I’ve been working on it and it’s been slowly increasing since I began my business) and my business grows and profit, there were a lot of banks, lenders that offered me decent loans. But as soon as I say or send in my square statements, nope. They all say the same, square is a personal account and they need 3 (or however many they wanted) business bank statements.  That made me angry.  Cause when I signed up for square, they made it sound like I was signing up for a business checking account.  I’m wondering if they do that on purpose so you cannot get funding elsewhere unless you knew this and opened a business checking.  I just opened one yesterday, cause I want to keep my business income completely separate and listed as in a business account.  Still not stopping using square, but transferring all my income from processing into that. 

[Twpchair]

It's mind boggling why you haven't been offered a new loan. I don't get it really 😕 I've only seen myself one person who hadn't received one in a year!!! They finally did but they had a flag on their account and it took a whole lot of work and unnecessary stress. Good luck to you! 

[locksmithnick]

I’m sitting at 71% on my 20th loan. I should be at 75% by the first week of August. 

Side note, do you guys have your bank accounts linked? I don’t, and always, like clockwork get a new offer at 75%. I’m wondering if it’s the bank account link, or possibly even the Square Credit Card that’s delaying some of you guys offers. 

Just a thought.. 

[PFS36]

We only have our account connected to Square,  not Plaid. Our bank is a small, rural bank and isn't populated in the back connecting process.  

[Twpchair]

I do Not have mine connected! 1. I had major hack not this February but last year and still working with the credit bureaus!!!!! So I am like you, a small credit union but they have a password and 4 pin to access my account! It wouldn't pass the 3rd party to access you're banking info period. I was or have been offered 4 loans since about an 18th month period. Just my experience. 

[itisnotjustpiza]

We recently added ours in Plaid since we have been waiting so long for a new offer. 

[TaylorA92]

Okay everyone I got my new loan offer. I was at 82% paid off on a 36,300 loan.  My new offer was 33,300. My bank account is not connected. I didn’t have an abnormal weekend in sales. My sales are technically on pace to be down by 8% this year. We process near 300k. Approved and money is on the way. 

[Healthyketo]

🎉. Congrats! Did your offer come in today? Glad it’s moving along. Hopefully more offers will hit soon. 🙂

[PFS36]

That's great news! Congratulations!

[Twpchair]

Congratulations! Thank you for posting! Let us small businesses shine as big boxes are closing! 

[TaylorA92]

Yep my account updated at 3:52 with no offer. But at 5:05 got an offer 

[yoyobanhkhot202]

Still has no offer @ 86%. Good luck to everyone!

[locksmithnick]

Do you guys put your cash and check sales into Square also, or just your card transactions? I went away from paper receipts last year and now ring every transaction, cash/check/card, through Square. Just wondering if everyone else does the same… 

May lead to higher loans?

[Healthyketo]

Is square down? I cannot get into my website and my customers are unable to make purchases. Now I’m going to lose sells today. 

[itisnotjustpiza]

It was but supposed to be fixed now.  

[Healthyketo]

Yes it’s back. 

[Twpchair]

Did it get back up for you? It didn't affect us but I did get a message with technical issues.