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.

[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.

[taraj2004]

Que everyone frantically checking for an offer haha 

[Twpchair]

Congratulations! Thank you for the update! Definitely 68% I haven't seen too many of those percentages in a while! Hopefully this starts to pick up for others!

[GoodBoyDogTrain]

I was hopeful since that's where I used to always get an offer, but didn't think it would happen! I hope it starts rolling trough for everyone waiting soon!!

Since it was after hours last night now I'm just waiting for an approval, this part almost makes me as nervous as waiting for an offer 🤞🤞

[ls725]

July 31st @ 8:18 PM PST: no offer in sight, loan paid off for 11 days now. Huge increase in sales compared to last quarter, Square Loans doesn’t want any of it :(.

[studio219ink]

Reading some of these responses is a bit demoralizing. I've been with Square 10 years like a lot of you, 80% repaid on my current loan, all green metrics and yet, still no offer. Tried calling and got the response was them reading from a script, basically the same stuff I read online. Has anyone had any luck getting manual assistance with getting their account reviewed?

[Twpchair]

A couple got through the script part and to a person who said they would manually look at and follow back with them but that's been a couple weeks ago and they are still here waiting and no word yet.

[Twpchair]

It's been pretty slow, as you see. The first one here this week that at least post here just received an offer yesterday at 68 or 69% that hasn't been the trend most of them have been at a higher percentage paid back or completely paid off. Hopefully, that's good news. We have 5/6 on here now, completely paid off for a month or longer, and no offer, still all green metrics, great sales, and nothing yet. Definitely, ready for a big push of loans going out. Good luck to you and everyone waiting! Please let us know if or when you get an offer. It helps others.