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.

[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 

[HippyDippy]

Here's hoping for everyone to get some good news today. 

[DonutLady]

Yes I’m praying everyone gets an offer today! 

[PFS36]

Happy Saturday! Hope everyone waiting gets great news,  today! We had a great day in sales for Friday and we're now at 84% all green.  

[Twpchair]

💯 let's get this rolling with approvals! My last loan offer was Saturday night about 7 pm after a 3 day sale! 

[Healthyketo]

Yes! I hope everyone has a great day! Praying for us all to get an offer TODAY! 🙏

[ls725]

I hope we all do, Healthyketo 🙂

[PFS36]

Crazy, busy weekend so far, but today has been mostly cash. We'll take it, though 😊

[Twpchair]

Cash is always king! I know it's kinda hard when you're trying to get a loan and that extra percentage paid off. As long as you stay busy money is money! Good luck and hopefully this thread will disappear with loans going out! 

[PFS36]

I'm sure I speak for most of us when I say say we all really appreciate the positivity from you.  We're all in this together. 

[Twpchair]

Thank you so much 💓 I understand people get frustrated and want answers besides the normal script response and being with Square since 2012 before loans kicked in, I believe in 2014. I've seen the ups and downs along the way. I've always been one that was in favor of a revolving line of credit, and yearly, they could change that according to sales. It floated around like the credit card idea and didn't happen. Us as business owners, it's hard if you have a great chance or deal on supplies, inventory, and advertising, and here we are stuck waiting on this magical algorithm. I've been there and done that multiple times throughout the years. Thank you really  small business use to be the backbone of America and without you there is no us! We all are unique and add that special touch that big box doesn't!

[Knight87]

Hit 75% yesterday, updated today 12:40 PT, no offer, Will hit 76 today, last loan offer came at 76% sharp, one prior at 82%. 

[Twpchair]

Good luck! It has been trending higher percentage paid back or completely paid off. Hopefully, we can get back to normal and more loans going out! Please keep us posted it helps others get an idea of what is happening. 

[Petbiz1000]

I hit 84% yesterday and received an offer for today around 5pm. A couple of my metrics were red 2 weeks ago because my store was closed for a week due to Hurricane Beryl. They were red for about 5 days.  

[PFS36]

Which set of metrics? The Loans metrics or daily sales metrics?