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 

[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

[Paulynne]

They don’t recognize Square as a financial institution. I have had that problem A LOT! I finally asked why to a loan company. I was told square is  a fintech company and although Sutton bank insures our funds with square checking, it’s considered a third party. I process and bank with square, so it makes getting loans from other institutions very hard. 

[Paulynne]

I’ve been with Square for over 10 years and have had 14 loans with them (starting at $750). I absolutely love this company and appreciate how the loans grew my business. I will say that something is definitely going on behind the scenes. I have never been at the 75% mark with no offer in sight and usually get an offer between 65%-73%. And OF COURSE at this moment and time, the additional capital would keep us going and we aren’t able to access it. I am PRAYING that this offer comes through today. 

[Twpchair]

Good luck to you and everyone waiting smh. I wish I knew what was going on? I've been with square over a decade, and I have not seen it this slow. Last summer was bad July and Aug. Late August and September, it really kicked in, but I don't remember it slow. Hopefully, it will break open soon!

[PFS36]

Waiting on loan offers is kinda like the lottery.  Ooo ooo did my number come up??? Nope, back to waiting until tomorrow's update... praying for everyone 🙏 

[Twpchair]

I know it certainly feels like it at times! 

[GoodBoyDogTrain]

I just got a new offer about 20 minutes ago! It was earlier than is trending at 68% but I recieved my last loan at the end of March and I am about 33% up in sales from then. Just waiting to see if I am approved now!

[Healthyketo]

Awesome! That’s great to hear that there’s some movement. Prayers to the rest of us waiting.