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.

[Petbiz1000]

Daily sales metrics 

[PFS36]

So your Loan metrics were probably in the red, too. We had a great weekend so far and we're open today,  so hopefully it will get noticed.  This is our last Sunday being open,  I hope it's a great one. Thank you for your response!

[Twpchair]

We are open 7 days a week, and that helps, but in the winter in Michigan, we close 2 days a week. Plus, snow or ice storms we close on. So our metrics are all over the place! Usually, Friday-Sunday are very busy and they change to all green. My last 2 offers were both on a Saturday night after a busy couple of days. 

[Twpchair]

Where your loan circle is, see if it went back to zero. Also, click on previous loans and see if your old loan is there as paid off. Mine on the weekend loans, I knew it was approved and just waiting for the money to hit because my old loan was gone, and my circle loan was at like zero paid off. The previous previous loan that rolled over was 800.00, and that was added to my new offer to pay off. My money was in my account on Monday. 

[Twpchair]

I wasn't sure which one either, so I gave both to look at? They've received an offer and accepted it, but sometimes, on the weekends, especially late Saturday and Sunday, they might see the funds till Monday. My last offer was around 7/8 p.m., and the deposit was Monday. But I could tell because my loan amount changed to the new one, and my loan circle changed to the new amount and zero paid. Also, in previous loans, I rolled over 800.00, and that was added to my new offer to pay back. I wasn't sure either, so I gave them all places to look. Lol 😆 😂 😅 

[Twpchair]

Congratulations!!!! It's so nice to see people post they received an offer! There are a few that went on vacation for a week or 2 and didn't know how it would impact them. Your a great example! Thank you for sharing! 

[PFS36]

That's awesome! Congratulations! You definitely needed it after being closed,  I'm sure.  Thank you for the update!

[taraj2004]

Fingers crossed for everyone! 

I got the email the other day about higher loan amounts and thought I d9nt want 250k I want like 5k haha I'd be happy with 5 right now. I'm at 74% paid! Hanging on by a thread. My land lords are great and keep telling me just pay $100 a week if that's all you can afford. Small town with my self (drink) bar pizza place and one retail space. Holding out hope 

[Healthyketo]

Right 5k-7k would be ok. Especially for me and my small business that would literally go a long way. Lol I don’t care about no 250k. 

[itisnotjustpiza]

I would take just an answer to if we are no longer going to be eligible.  A reason why, so we could improve.  Maybe why some are not even paid off and getting offers while we have done business with Square for ten years, paying off several loans and now nothing.  Something.  😏

[Twpchair]

Have you tried to reach out to them? Email them and as so as you do it usually pops up a survey and fill that out! Most people said they respond back faster to that little survey on how are we doing. Tell them your not happy and baffled why you have been paid off and all green never missed a loan so why am I not eligible anymore? 

[Twpchair]

Good luck! I've seen a few with great landlords giving them a break or just skip a month. That's awesome 

[DonutLady]

So I just got an email to upload my bank statement and a business entity. Has anyone had to do this before? This is my first time having to upload documents I have had 4 previous loans with them. I’m kind of nervous. 

[Twpchair]

Yes, there's a few on here now that need to provide further information. Once they receive it, the faster you can process it along. They usually ask for this just as a safety net that you actually have a business, are you a true owner or co-owner and you and you alone are responsible for said loan.

[DonutLady]

Do you know how long after they receive the documents I should hear something back?

[Twpchair]

I have personally never had to it (knock on wood), but a lady a couple of weeks ago did, and they said roughly 5-7 business days. She was approved immediately and deposited a hit 15 minutes later. She was also a weekend, and technically, Monday would be the first day and Friday she was approved and done. I've seen Many over my time get this and I don't know why but imo I think it's just a random pop up and you personal didn't do anything wrong add that up with the mystery algorithm. You should be fine, unfortunately. It just slows you down a bit to get your funds. Good luck and please try not to stress about it! You got this!

[DonutLady]

Just got approved and funded! It had me kind of nervous thank you for the great info! 

[Twpchair]

No problem and so glad to hear this!!! Yours was fast! Great to hear and thank you for the update!

[Alexis321]

Congrats!

[Twpchair]

Is there any news on the new issue? This one baffles me. I could understand if you were using your card and buying stuff, but honestly imo why would YOUR own family or friends not support you 🤔 😕 that would be like me  telling my parents to go shop elsewhere? Noooooo, they want to support you, their family or friends. I definitely want to know how this goes if you don't mind because this needs to be addressed and clarity imo. This is one I will bring up in our weekly meeting tomorrow! 

[Alexis321]

My very first loan and I was approved the same day and money in account in like 10 min. Now, nothing. All paid back, it's been 2 weeks.