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.

[thehealingplant]

Respectfully I'm not sure what's funny about people comparing notes on the type of business they're in. All a lot of us can do is compare notes and see what lines up because there is such a lack of transparency from Square in regards to anything.

[ls725]

There really is a lack of transparency, I agree with you on that, I feel the same way as you guys, I just think it's funny how far it has gone with us all trying to figure out the algorithm in the background.

[papaya19]

Do you all typically get loan offers right after your dashboard updates or is it a little bit afterwards? 

[Jjpainting]

This is a good question as I have no idea. This is the first time I’ve actually been looking daily for an offer. My last offer could have been up for a couple days before I realized it cause I want expecting one at 66%. 

[Twpchair]

For myself only I usually update 1-3 pm Eastern time, all my offers, since the metrics came into play and offers were 7-10pm Eastern time. That's just me. 

[olivesageeee]

I was offered and funded today! Unfortunately it was half of the amount, but everything helps!

[Alexis321]

Nice to hear!

[Twpchair]

It is! Now, let's see this all day every day! 

[Twpchair]

Thank you so much for sharing! I'm sorry it was less than you anticipated, but like you said, something is better than nothing. Let's keep this trend going! 

[taraj2004]

What % were you at? 

[olivesageeee]

88%! I'm assuming funding is low right now since my numbers are all up from last year. I got my previous loan at 62% and it was $16,800. This one was only $9,500.

[Healthyketo]

Congrats! That’s great news!  Hoping more of us get an offer soon! 

[PFS36]

Now we just need to hear good news for you 😊

[Healthyketo]

🙏🙏

[Twpchair]

I'm telling you, if you and a few others don't get an offer soon, my hair is going to turn Grey, I swear! l😆 😂 😅 

[coolcoffeecrumb]

I've been 100% paid off on my 5th loan since June 8th, all green metrics, no offer 😞 

[Twpchair]

Ughhhhh, I'm sure you are reading the comments, and unfortunately, it does not want to be good to us. It's really tight right now, and I'm not sure if it will break like last September and loans going out faster than I could type. Congratulations! We have so much going on behind the scenes, and we can't control that. When you have shareholders and / or other investors to account for lending, it is tight right now and just watching what is going on. It's crazy because you can scroll down, and people are up 200-300% and still waiting. We got this 👍 everyone waiting keep everyone posted on what is going on is the best! I wished more people would use this and keeping us all informed would be great

[Twpchair]

You are one of our longer ones waiting. Ughhhhh, I hope soon I truly do. I was talking about this with someone else, and I can't remember ever seeing this many paid off completely and 1-3 mths and still waiting. Hopefully, things will give here soon for you and everyone waiting for an offer 

[Twpchair]

Hey, what happened when I was gone??? Did you invite more people here for the ughhhhh club? I haven't seen JJPainting. Did he get funding? I don't see a post about it but just gone? 

[PFS36]

A lot of folks have joined the party of no offersville.

[photoguy2019]

Yes! I am currently up 200% and 52% paid off of my 7th loan.. I'm sure i will be in no offersville forever 😩😂😂.