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.

[Twpchair · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[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!

[PFS36]

Thank you! We're moving back to our hometown.  The small town that we're in doesn't really support small businesses unless you're from there. Kinda weird,  but ya know.  Our hometown is going bananas,  knowing we're opening there. So much support from everyone... even the mayor is ecstatic.  We just need this loan to be a cushion during our transition to a new location. 

[Twpchair]

That is awesome and that is one thing about small towns in America they will rally around you and give you all the kudos and support! I'm rural mid Michigan and we are all mom n pops besides the 10 dollar generals every 10 ft 😆 🤣 😂 just kidding but we do have 5 with a one 4 way flashing light!

[PFS36]

Happy Tuesday! I'm praying that everyone waiting,  gets a big ol loan offer today! Twp is right,  small businesses have the most heart. We put our everything into our businesses.  June and July has been slow for most small restaurants and we know the struggle.  Praying we all get the good news we've been waiting for, this week!!

[Twpchair]

I give mad props to restaurants and food trucks down to the coffee shops! The prices for you have all gone up 2-3 times! For you to stay open is amazing! But what I have noticed here locally we still support are mom and pop restaurants vs. fast food every time! Most people understand that you aren't making a killing. Unfortunately, prices have gone up! I would take a burger and fries from my local restaurant every day over McDonald's! Keep doing the best you can, and we can and will weather this storm! Here's to everyone waiting for a loan to get one today!

[BWcreamery]

I took your advice and emailed them. I’ve been paid off about a week on my biggest loan yet. I just asked if they could see anything on their end that I could be working on. 

They said they would escalate it internally and I should hear back in 1-3 days and have me a case number. Pretty sure it’ll be the generic response they send anyone but figured it couldn’t hurt 🤷🏼‍♂️

Will keep yall updated!

[Twpchair]

Good, and guess what if you get a generic response? Don't stop going higher. Unfortunately, the square is worldwide and millions of users. It's up to us to pursue it. If not, you will keep getting that generic script. As hard as you fight for your business, apply it here as well! We all get that great rep and the not so helpful one. You do what is best for YOUR business. You got this! You can do it. Just push forward, keep swiping that card, and continue to kick butt

[Paulynne]

I hope you understand how your words really help and provide mental support to everyone. I pray you are doing great and get the things you need as well. 

[Twpchair]

Thank you so much 💓 this is a hard board for me to help on because I know people want answers and why they haven't received a new loan. Believe me if I knew you would all know. We're not babies. we're all adults here and just want some transparency on what is going on. If they've changed how or when you could receive one, just let people know, and they can pursue different avenues and go from there. Good luck to you and everyone waiting for an offer. Hopefully, it kicks in fast and often. 

[PFS36]

It could be the opposite of reviews.. let's say you will see more bad reviews on a product than good reviews,  since the people that have nothing bad to say about the product because they're out using and enjoying the product.  Maybe the ones getting the offers aren't on here because they got the money and they're last concern is coming here to give an update.  I know the ones that said that they got an offer, have disappeared and we haven't heard anything else from them. Just my .02 ... praying we hear some great news asap.

[Twpchair]

You are 💯 correct! Not everyone posts on here, and the ones that do are looking for advice or to see what percentage everyone is at. I try hard to ask them to please let us know when you received one and what percentage they were at and all say definitely will and then gone until the next time they are looking for one. 

[PFS36]

It actually helps others when the people that get the offer come back and let everyone know.  It's helps to see what the trend is.

[Twpchair]

It does a lot! Even though we are different and unique from each other, it at least helps get a rough idea. 4/5 years ago, I could almost pinpoint when an offer would come in for me. At 70-75 %, unfortunately, not anymore. My last one was 81/84%. We had a 3 day sale, and I think that kicked in. We were extremely busy! I updated around 2 pm. on Saturday at 81%, and when we closed, it was 84% and around 7pm Saturday night. I received an offer in early March, and the one prior was 91% 

[PFS36]

And to top it all off, our vent hood just went out, so these loans really help small businesses.  Hopefully it's not too expensive,  but we're meeting the repair guys today after lunch. Hopefully someone from Square reads these threads and see how much of a good impact they have on the small businesses. 

[Twpchair]

Ughhhhh,  nothing like a double whammy! Hopefully, that's not too much to fix. I know that just at our Chamber of Commerce meetings, our local restaurants are just making ends meet. They aren't raking in made money. I had on my phone they post, I believe 5yrs ago vs today the cost of hamburger, buns, and even the container for take outs is 4-5x higher. Most normal people who go to the grocery store should see you are feeling hard, too. We still do our every Friday fish dinner and pizzas, of course. I can't tell you the last time I've even been to a fast food business, nor do I care too. I shop local and eat local. Good luck with everything going on!