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.

[PFS36]

That seems probable,  but why would they increase the max loan by 100k if they were tightening up? That's what's confusing.  I'd rather loan out 50k in this economy vs 350k.

[Twpchair]

I don't know myself? Believe me, if I was given out the loans, I would be like Oprah, if you get a loan, you get a loan. Unfortunately, I don't. Some I just smh and others at 45% paid off I smh as well. I keep track of trends that's my job 24/7. 

[PFS36]

Have you seen any at 84% ? Lol

[Twpchair]

My last one in May was 81% prior to that it was 91% . I've been with Square since 2012, and once they kicked out the loan part, I believe 2014? Mine was like clockwork 70-75 % . 💯 guaranteed! The last two years, no, not so much. I follow the trends and it's been trending higher percentage paid off or completely paid off. 

[PFS36]

Hoping everyone gets some great news, today!

[HippyDippy]

Ditto from me, fingers crossed for everyone!

[Twpchair]

Last Friday-Monday, was the most I've seen updated with an offer, so hopefully, we can fill this thread! Good luck to everyone waiting 

[HippyDippy]

Looks like the dashboard just updated and no loan offer. Is it possible to get an offer after the dashboard updates?

[Twpchair]

All of my offers have come after the update. I usually update 1-3 pm Eastern time, and offers come in from 7-10 pm. I've never got an offer prior to updating. 

[HippyDippy]

Thank you. I thought that they came in right after the update. Glad to see you say this so I can hold out some hope!

[ls725]

Any luck? Still waiting on mine.. 100% paid off 6 days so far

[locksmithnick]

I believe, based on the info that I have from relatives and friends who use Square and Square loans, that this is industry and possibly even market specific. They’re still giving out loans right at the 75% mark to good businesses that they probably feel are “recession proof”. 

Im currently at 72%, probably 73% tomorrow, then taking a trip out of town for a few days, but I expect to be at 75% by the first week of August. I’ll update you when my new offer comes in and if it were more or less. My sales are up over 40% for the year, so I believe the offer will be higher than the last from November. 

[PFS36]

I understand the part where everything that says good or needs work can stay in the green,  but your sales on the daily side of it can't possibly stay in the green percentage because that would mean you'd have to do more every day or break even every day to keep it in a positive percentage.  You'd have to break each day's sales record, right? 

[ls725]

Not sure, it's always in the green for me. It does compare them to last week's sales though.

[PFS36]

Someone is eventually going to crack the algorithm lol

[locksmithnick]

Mine is also always green. 

[ls725]

Keeping my full daily sales is really nice though, not gonna lie, even though I would love a loan so I can re-stock my store with accessories.

[DonutLady]

I finally had an offer come in yesterday at 77%. I accepted it. But it says 1-3 business day for approval. This is the first time I had to wait 1-3 for approval. Usually the money will be in my account within 15-30 minutes. But I’m thankful since school is about to start so we need a lot of inventory! That’s our busiest season! 

[Twpchair]

Mine was a Saturday night and funds in my account Monday. The weekend tends to run a tad slower. I didn't get an email, but the funds hit my credit union, and then the email came. Watch your loan part of the round part that tells you how much you paid or percentage is. If it goes back to 0, paid off, and the old loan disappeared, it's been approved and paid off the previous loan. Unfortunately, it will probably hit Monday. I believe I checked my credit union around 1 p.m., and it was there. Congratulations!!!! 

[DonutLady]

Thank you! I always get nervous when I don’t get an instant approval it’s like a waiting game lol. My fingers are crossed that my funds will be there on Monday! 

[Twpchair]

Keep an eye on your bank, too. Mine was in there before I received a message