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 · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[Twpchair]

Yessssssssss! Thank you so much 💓 for the update! I am so happy for you!

[Twpchair]

You are amazing! Did you see? She got approved and deposited! Thank you so much 💓 for all you do!

[MrBond705]

Hey hope all is well. I paid 85% of my loan please look up mine as well.

[Lou8]

Hi @MrBond705 and @Swain thanks for posting here.

Since we don't have access to account information on the Community, I invite you to contact our Square Financial Services Team directly if you have any questions about your Loan. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[Swain]

Can you look into mine please 

[BodyLabPhilly]

Hit 87% today, all green.  Hoping it triggers an offer. Continued good luck to everyone waiting. 

[Twpchair]

Good luck! Please keep us posted it helps so many waiting!

[thehealingplant]

Well… we’re losing hope. We just got assigned an account manager but sadly it may not all matter here shortly.

We don’t want to consider other options but it does seem like there has been more success with a few others. Fingers crossed and we’ll try and ride it out for a few days more.

[Healthyketo]

We are in the same boat. Sadly not sure how much more longer we can wait. July is my slowest time because everyone is out of town before school starts. But we’ve been trying to build sells with pop up markets I feel like I am working myself to the bone to generate transactions and still we get no offer. Been paid off for almost 2 weeks already and I’m feeling very defeated. We have always been loyal to square even after feeling betrayed with the last offer we got back in Aug. 2023 which was half of what we had been offered prior.  I’ll keep your business in our prayers along with ours and all the others waiting . 🙏

[Jjpainting]

I can’t believe you haven’t gotten an offer yet with being paid off. The only time I had to pay off a loan before an offer was after my first loan but only a couple days. I’m hoping this doesn’t happen to me and I’m wishing you the best of luck still 

[Twpchair]

Ughhhhh, I have been waiting and watching you and knowing you were going to be paid off fast. Wishing you both the best!

[thehealingplant]

Just like JJ I’m shocked that you haven’t gotten one yet.

hoping for all of us this is the week.

[Jjpainting]

Yeah but aren’t you the one that’s been paid off for a couple weeks?  I can never remember if it’s you or healthy keto lol. I hit 91% yesterday so it would be nice if that will get me an offer today. I doubt it though. 

[Jjpainting]

If anyone should have gotten one, it should be you if you’re the one 100% paid. Everyday when I see that you haven’t gotten one leaves me in total disbelief. Did that account manager do anything for you yet?

[thehealingplant]

Nope that's HealthyKeto who I feel absolutely awful for as well. We hit 78% today but we're about to surpass the amount that was used from this loan to pay off our last which means we're in line (I'm assuming) for no offer or a smaller one. I'm just hoping something is in the pipe because we will have to explore the other courters if it doesn't. Not because we want to but there's only so long we can sustain for where we're at now.

WIshing you the best as well by the way!

[Jjpainting]

Yeah I’m down to $1403 left to owe only, and around $3300 of this loan was used to pay rhis loan so yeah I see a smaller one coming as well.  Hell, even the loan prior to that used closed to $1700 to pay back the prior loan. Like everyone, my sales are up so in theory I should get a larger loan. I just want someone to explain how their algorithm determines who they make wait longer, or who they give less to.  When I went from $8350 loan up to this current loan of $14,700, it was in November and last November was 13 months that we started with square and started my business. So if you look at just comparing last November to the previous November we increased processing $200 or 300%. This is my busiest time of year and being that I can’t find good help, that puts a cap on the amount I can process as I can only do so much work 

[Healthyketo]

Friday will be 3 weeks paid off and no offer my account actually now says processing volume “needs work” which is so frustrating. I have honestly gave up. I’m not even checking as often anymore and just letting it happen when it happens.  Trying to figure out how to make more sales and do more farmers markets and pop up events just to make that much extra money. I did recently add the saving account. I was thinking maybe I shouldn’t have linked my bank a few months ago maybe I would have had an offer by now. But not sure if that makes a difference. I don’t know this algorithm is just unpredictable. 

[olivesageeee]

I’ve been getting loans for 2-3 years and I’ve always been offered before or at 80%! Currently at 84% with no account issues and still no offers. Super sad over it, was hoping to invest in some new gear before wedding season and was hoping this thread wasn’t going to be my case, but seems like it is.

[Twpchair]

I am so sorry 😞.  I was hoping that when I didn't see you for a while, you got your offer. Unfortunately, it has been trending just like last summer.  It went the same way. July and early August were tough, but come September on boom 💥 it picked right up! I know your situation been there done that honestly when you feel caught between a rock and a hard place and just exhausted 😩. Hun, I don't work for Square or anything, but before you jump ship, please just look at their reviews or reddit. I do myself, and it's not just square it's lending and banks on the whole who are holding tight right now. I had one from Clover promise me an instant 1st day loan for 25k smh. No, I read their terms and six 6mths of history, and you start off like

square 1-3k loan. I really wish you the best so much I know what and how this is effecting you're business. Good luck and hopefully everyone waiting will get an offer now!

[thehealingplant]

I appreciate that and it’s not that we want to jump but almost any help at this point would go a long way. I’m just being honest but any level of transparency in process or outlook from square would be a world changer. But it’s hard to continue holding on when you feel like you’re being pushed through a revolving door waiting for a crack to sneak through while you’re just being played the same music over and over again.

[papaya19]

Unfortunately I still have yet to receive an offer and I’m losing hope. No matter the offer, I know It is going to be beneficial for our business and we really need it. Please send prayers our way please! We are at 84% paid off and all metrics still in green.