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]

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! 

[PFS36]

It's almost like society is OK with with every business having to increase prices due to inflation,  but it's a big bad thing when a restaurant does it.  It's a double standard for sure. You have to pay employees more and food costs are astronomical.  That's why these little loans help. And thank for all the insight, positivity and help.

[Twpchair]

I understand, and unfortunately, there are some people who will never get it or understand it. They just want to moan their 5.00 burger is now 8.00 or 9.00 dollars! I used to take it to my heart and unfortunately, now we can't please everyone all the time. If they don't like it, stay home and make your burger  and don't forget all the toppings and sauces. Because in the end you didn't save much and you had to cook it. You will never please that person. But your loyal customers get it and understand it. All we can do right now is do our best and keep those doors open. Good luck I know it's getting old hearing that every day but we're right here with ya!

[GlitzyCow]

Square should honestly pay you for as much as you post here. You are way more helpful than their own team. 

[Twpchair]

Thank you, really, but honestly, after your year-long ordeal, you need on the payroll for a year! I'm glad it's done with, and hopefully, no issues going forward! As you see from last summer, how it dried up until about late August and September, and then the loans started rolling out daily. Hopefully, they kick in soon. I've never seen this many paid off completely, and no offer yet?

[Twpchair]

You go! And don't stop at a generic answer and ask nicely for a personal rep to look into your account.  You got this and keep pushing forward! Loyalty means 💯 to me, and I'm sure you! Don't stop till you get a real person! Do not ever forget WE are the backbone of the economy! Without you and me and the millions, either there is no US!!! We provided, we employ what keeps the world going around. Unfortunately,  we have to realize that square is worldwide and doing loans daily at a highest rate. Right now, keep pushing and swiping and it will get to you and me! I ❤️ wish you all the best! I hope 🙏 I wake up tomorrow and half of you are founded! 

[PFS36]

I got a somewhat generic response.  She said that since I have a loan that's not completely paid off (85% and all in green.  175000 in processing) , that I'm not eligible.  They just throw out answers with no rhyme or reason. 

[Twpchair]

I really don't know honestly, and I am groups that are behind the scenes, and they don't know either. I watch the trends, and it's a higher percentage of 90s to completely pay off.  A small few have been 80s, but that's handfuls that at least that post here.  We have to remember a million use square world round and a small percentage post here. The most I see personally are the USA 🇺🇸 and 🇬🇧 and Canada 🇨🇦 I wish more would respond but that's what I see. It is trending higher since 2016 and unfortunately 😔 we have to dig deep and hold strong!

[Twpchair]

Yes, it is not easy getting past that script response and to an actual loan representative. Also, last week, we had 3 people post, and 2 were in the 80s and 1. Believe if I remember correctly was 77% paid off. If they would let me in that loan department just for a couple of days, I could speed things up a bit! 😆 🤣 😂 

[ls725]

Is there a reason other financial institutions don't work with Square? I've had issues in the past applying for loans with my Square account.

[Minion]

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@ls725 wrote:

Is there a reason other financial institutions don't work with Square? I've had issues in the past applying for loans with my Square account.

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I'm not sure 100%, but I would assume since Square isn't classified as a banking institute, or something along those lines would be my guess. 

[ls725]

I love using Square Banking, upsetting to hear this.

[Twpchair]

@Minion is a great one for advice and help! Do you, by chance, have a nice smaller credit union where you are? Credit Union vs. big banks tend to be easier to get an account and financial needs. Then you can keep your square accounts and have a backup if you don't already.

[Minion]

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@Twpchair wrote:

@Minion is a great one for advice and help! Do you, by chance, have a nice smaller credit union where you are? Credit Union vs. big banks tend to be easier to get an account and financial needs. Then you can keep your square accounts and have a backup if you don't already.

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^^^ Appreciate yah @Twpchair .  But yeah even banks like Chase offer an okay sub for opening up new business accounts through out the year.  I think the current one right now with Chase is $300 bonus for new business accounts with qualifying activity (easy peasy money). 

Nothing against Square, but opening up the door to local or other banks is never really a bad thing even it you are just keeping the minimum amount to avoid monthly fees to get started. 

[Twpchair]

I agree 💯! I forgot about Chase. I have their credit card, and they sent me info about their checking and savings account, and you are correct. If I opened a checking account, it is a 300.00 bonus for starting one up. Being retail and an actual physical store, I have to have a bank for change a couple of times a week! We blow through 10.00s and 5.00 like crazy