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]

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!

[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.