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]

They literally do! Square is worldwide and doing loans all day every day. Unfortunately, all we see are the ones posted here. We definitely could use a good handful of get loans this week, though. 

[Twpchair]

I'm so sorry 😞 I really hope you get an offer soon! 

[DonutLady]

You know how I had to turn in my stuff to get my loan approved money came yesterday. But my last customer was a family member  who wanted to support our business since this summer has been so slow for us tipped us $200 on a 17.00 transaction now my transfer and all the money is on hold! I can still accept payments but I had to upload my bank statements again, picture of their ID, an invoice, and more things. Now I’m having to wait 1-2 days again for my funds to be released. I’m able to take payments but I’m not able to use any money in my square account. I’m so frustrated! 

[Twpchair]

Ughhhhh, your kidding me smh. I am so sorry you are running in circles and going nowhere! Hopefully, they get processed today! Good luck to you!

[DonutLady]

Thank you! I did get an account manager so I’m hoping he can do something for me I left him a message! 

[Twpchair]

I'm sure they will! I'm not sure where you are I'm in Michigan and 3 hrs behind them. They usually call me between noon and 2 pm. When I had terminal troubles. 

[Alexis321]

Never lose hope!

[Twpchair]

Good luck to everyone waiting for an offer! We need a great Tuesday pushing out loans today!

[PFS36]

🤣🤣🤣 probably,  since giving out 350k vs a bunch of 20k loans. I don't want to even imagine owing 350k on anything.  

[Twpchair]

Me either! I would be scaling the loan button wayyyyyy down! 😆 🤣 😂 

[Alexis321]

Oh no! That's crazy. I'm glad my loan was small.

[ls725]

For real... if I had a 350k loan I would be a millionaire.. haha all I need is about 20k 😞 just to make a lil flip.

[PFS36]

Wonder how many default on 350k. That's a crazy amount of money for a small business.  If you're processing that much to cover a 350k loan... dadgum!

[Jjpainting]

If you get a $350k loan, that means that you’re most likely processing around $3 million.  If I was processing that much, I sure as hell wouldn’t be using square, unless businesses that large have smaller processing fees. Cause there’s lots of options out there for lower processing fees 

[PFS36]

I agree,  but I also don't know about processing that much, either.  I would call my business a larger small business if I was doing that much revenue. I did read where US Foods has teamed up with Square last month.  So Square is definitely in the restaurant game.

[GlitzyCow]

I process just shy of 1m. My last loan was not 100k.. I like square so passing this kind of judgement is a little uncalled for. 

[PFS36]

I don't think they were passing judgment, I think it's just an observation.  I do know that business that is processing 1M plus , has to be some major work.  Our problem is finding people that want to work and not just there to get paid. One of the reasons we're moving to a larger market.  Our goal is to hit 500k in sales and then reevaluate if we want to grow more.

[GlitzyCow]

A lot of factors go into how one chooses to process. You paint. We farm and own two small businesses. To each their own. I have a lot more overhead than you do. 

[PFS36]

We have a farm and I tell ya, ain't nothing cheap running a farm. We have 500 head of black baldy, 100 Nubian goats, 3 chicken houses and tax on 1500 acres. We know the struggle of farm. Our business is a restaurant that operates 3 days a week and with food costs through the roof, it's tough. No, we can't just use our livestock in our restaurant lol

[Jjpainting]

What kinda judgment am I passing. I don’t know if everyone pays the same rates but mine is 2.9%. I’ve found multiple different companies that I could get under 2%. I haven’t looked too much but I did find a legitimate good one that offers 1.9%. Everything I just said there are observations and not judgement.  I’ve started my business 2 years ago and when I looked at my yearly reports and saw the total processing fees I’ve paid,h mouth dropped.  If you’re processing a few million, 1% is a huge amount of savings. The reason I stick with square is due to their invoicing.  It’s the most user friendly for both myself and my customers. So I maybe there’s some reason like my reason I just gave that would keep that large of a business with square.   I have know idea how you read that as passing judgement. 

[ls725]

I've totally lost hope myself, 10 days since loan was repaid in full, stats are still 100%++ from previous months, biggest month in sales we've had all year, made an extra 10k this month and still no loan.

Month still isn't over, hoping to bring in another 3k-5k next 2 days, hopefully something happens.. lol