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.

[BWcreamery]

I didn’t get the email I believe. But I just paid off my current loan! Fingers crossed another one comes soon 🤞

[Twpchair]

Good luck, and hopefully, you will get an offer soon! I don't get a lot of emails from Square except outages? My last 2 offers no emails, only saw it on my dashboard. If I accept it, then I get the emails to sign to accepted etc. My last 2 loans I accepted 1 and not the other, but the accepted one  money was in my credit union before the email it's on its way! That is why I tell people if waiting for the deposit update check your bank it might be there already. 

[PFS36]

There needs to be a way they can take in to consideration that not all businesses are open 7 days a week.  Since we aren't open Monday through Wednesday,  there's not going to be any card processing activity,  and that puts us in a "needs work" situation.  We have our hours of operation listed on our dashboard,  but they obviously don't use that for the metrics.

[Healthyketo]

I agree with you 100% 

[PFS36]

You'd think that would have been the reason for us putting our hours of operation in our business profile. 

[Twpchair]

Ours takes a dip in the winter when we go 5 days instead of 7. What I did notice we are closed 2 days in a row, and sometimes it dips, and other times, it stays green? No rhythm or reason with it. Good luck to you!

[locksmithnick]

Some of you guys seem to be more worried about the Square Loans than your actual businesses. I mean, they know when to offer you money…. They see the data. 

[Twpchair]

I don't judge, or now what other businesses need loans for. Some need it to expand or have an opportunity to get inventory for a great deal. Some need it for advertising and growing that way. These loans help a lot of small business owners vs. doing a bank loan, which is extremely hard to get right now. Most lenders this includes square is holding tight right now. We have a budget that they pushed back 2 times and has be passed in September, or the government shut down. In September, they decide if they are going to raise the interest rate again 🙄. A lot of factors are going on right now. This summer is trending in the same direction unfortunately. 

[Healthyketo]

Well the loans are Capital that is money used to build, run & grow a business. So yes some of us small business owners need it in order to grow our business. 

[Twpchair]

Ughhhhh, smh I can't believe you haven't received an offer yet?

[Twpchair]

Growth, advertising, hiring help, more inventory is a great thing but unfortunately when you lose out to an algorithm it stinks period. You lose that one on one communication compared to a bank or credit union. Imo when a business is up month after month it should trigger it. I ❤️ hope it breaks through for so many waiting! 

[PFS36]

Looks like the dashboard is down.

[HippyDippy]

Anyone have good news today?

[Healthyketo]

Not yet but hoping for it! 🙏

[HippyDippy]

Me too!

[Twpchair]

If you don't get one soon, I'm gonna text and call myself! l😆 😂 😅 I know it's not funny, and I know your situation and look every day to see if you updated and an offer. I believe there are 2/3 that are paid off or close to it waiting. My fingers are crossed for you all waiting! 

[Healthyketo]

😆 Thank you for the support! I get on here everyday hoping at the very least I see one of us get an offer.  Feels like I’ve been waiting an eternity but I know I’m not alone and a lot others have been waiting a lot longer than me.  Hoping for the best. God knows my business NEEDS this boost to right now. 

[Twpchair]

You are so welcome! And believe me been there done that smh. When you need it nope and if you don't that's when it comes in. I look every day for you and 2 others and hoping you get an offer! 

[Twpchair]

Not yet, or the ones posting on here. Last week from Friday night till Monday morning was the most I've seen in a long time! Good luck! 

[HippyDippy]

I am really hoping for this weekend. I am at 82% paid, my loans arent large, and i have never had any of the metrics go bad. Its crazy to be that prior I always saw offers at 60-65%. I dont know what they changed but I hate it. 

[Twpchair]

It's not just you. If you scroll up to the Mods message, it really has changed from previous critics and included the economy and interest rates. It has probably zero to your business, but all lenders are holding tight. We have 2 major issues coming up in August/September.  Whether the Feds raise interest rates and a budget that has to pass by October 1st. All lenders and banks are holding tight. This trend is from last June. I'm watching business owners up 200% and no new offer. Believe me, it's NOT just square it has all lenders holding tight. Good luck to you and everyone waiting