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]

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

[Twpchair]

One more just posted 6 weeks paid off and waiting as well. Good luck! We need these loans picking up!

[Twpchair]

Please don't ever loose hope! Keep plugging along and keep that business going! You got this 👍 just when you least expect it boom an offer will come in! We need every mom and pops to keep open! Big box stores are closing every day and we will stand and stay strong 💪 

[GoodBoyDogTrain]

Any new loans recently?? I know I am far behind on the trending amount paid off at 66%, but I keep hoping it will come through. Except for this current loan I am on, which came in at around 76%, they all used to come in the 60s. 

[Twpchair]

Most are trending higher percentage paid back or completely paid off unfortunately. There has been a few in the 80s. Good luck to you and everyone waiting!

[jackiebee12]

i’m starting to lose hope. i’m at 89% paid off as of today and my dashboard updated an hour ago with not eligible. 

all green and has been all green other than when i was on vacation in june and we only opened a few hours a day. 

we’re in a small town and last week was painfully slow 

[Twpchair]

Ohhhhhh no! There is NO losing hope, period! We are all in this together, and we push on! Hun, I know I've been there. Everyone on has been there. But guess what? You are still open and working every day! If I could change that nasty algorithm, I really would. We are watching big box stores and restaurants close daily, and guess what? we are still here and pushing forward! I truly wish you the best and everyone waiting to get that offer NOW! But please dig deep and keep pushing forward. Remember, small businesses are the backbone of America and around the world! You ever need to vent. Please 🙏 send me a message, and I can and will listen to it all

[seller87]

Hi Everyone! paid off 9 weeks ago. all green, daily processing. no offer. 

[Twpchair]

It looks like you're not alone! There are 3/4 others on here as well totally paid off. Here's hoping for a great Tuesday of offers! Good luck!

[Healthyketo]

Good morning! Here’s to another hopeful day. 🙏 I’m praying for someone to get an offer today. 

[Twpchair]

All right, it's pep talk Tuesday! Please believe me when I say I've been there and done that. I've been where my give a **bleep** has busted! But remember how hard we've all worked to get where we are! It's 24/7, and nobody gets that, but US! If we aren't answering calls and messages all day and night, it's a miracle. I know and understand believe how important each and every loan helps small businesses from new equipment, advertising, inventory the list could go on forever. But we are fighters, and together, we can do this and come out ahead. Look at all of us still going as big corporations are closing daily. That's because we all give our hearts and souls into our business. I truly appreciate all of you and your words of encouragement ❤️ we can do this and come out on top! Square wouldn't like me in the loan department because I would be you get a loan, you get a loan, and you all get a loan! Thank you all so much for sharing your stories and information it really does help others who are just lurking or commenting.

[DonutLady]

You have been so encouraging and very helpful especially for me who is new here! It’s like our own community! We’ve got this! I pray everyone gets a loan n it’s approved! 

[Twpchair]

You are so welcome! I don't work for Square or a bot (whice I have been called). The multiple typos should be a clue! No, I've been with Square since 2012, and the loans kicked in 2014, I believe, but would have to look. You nailed it, though we are all in this together, and you are right. This is our own chat and gripping group, and we can all celebrate together when someone gets an offer. So I let them vent and get it! Tomorrow is a new day. Unfortunately, I follow the trends and it's going like last summer. Really slow June to August and then boom it took off. So, hopefully, we will clear this board out fast! I'm really interested in your case that's a new one for me, and I reached out to our Mod for help for you. 

[PFS36]

Thank you so much! We're waiting for a loan to expand to a larger market.  Square will make a lot more money once we open our new location lol. I wish I could slip the algorithm a 20 to move all of us up in the loan line. 

[Twpchair]

Good for you for growing! That's awesome, and when you crack that algorithm, don't forget to add me, ok! 😆 😂 😅 expansion and marketing are expensive and important to you to grow and create more customers, more employees and that's a great thing!