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 · 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 

[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.

[PFS36]

Here's to a new month and new offers! Thank you to everyone that's updating us. Hopefully August will be nicer to us! 

[Healthyketo]

Here’s to a new month! 🙌🏽 Praying we all get offers soon! 

[locksmithnick]

I hit 75% this morning on my 20th and largest loan. Sales are up 48% over last year, let’s see if an offer comes my way this afternoon. 

[Robgrey]

I’m at 67% largest loan yet paid in 5 months. Sales are up 43%. Looking for an offer any day🙌🏻

[papaya19]

Sending good vibes to those waiting! I am currently at 90% paid off on my biggest loan ever. I am a very small business and maybe process around 7k a month if we’re lucky. A loan would be very beneficial for us, as we are struggling financially and have even considered throwing in the towel if nothing gives. I know It’s this way for a lot of others, and my heart goes out to you. Sending everyone prayers for good answers today.

[Healthyketo]

😪Don’t give up! I know exactly how you feel. I am a very small business myself I process a little under 10k a month. I need an offer to promote and purchase more product and be able to take on more clients. I have an opportunity to grow but need the capital. Applied at other places but since I bank with square no one will accept my square statements. I’m at a dead end and every day I wake up in hopes for an offer and feel so defeated when there’s nothing. Been with square since 2021 so not to long but it had been great thus far. I don’t know what to do anymore. Feeling very discouraged but I cannot give up. I’m literally running my business on faith. I’ll pray you get an offer soon! 

[hairkandi74]

Hi, all! I've been lurking this thread, as I am in this boat as well. You've all been really helpful and helped me stay positive.
My last loan from Square is completely paid off, with all my metrics in the green, and still no offer. Fingers crossed this afternoon, maybe? I'm EST, what time do you all normally check for offers?

[papaya19]

It usually depends for me, I’ve gotten offers as early as 10:30 am PST and as late as 7:30 PM PST— I feel like the majority of them come after your account has been updated. It’s a little frustrating! 

[hairkandi74]

I see; so the key I guess is to keep checking throughout the day. Appreciate the reply!

[PFS36]

Good news is, we're starting the week out great, but it's majority cash again.  Pretty sure that doesn't help the offer process,  but it does show signs of business getting back to normal.  We had a very slow summer so we'll take it!!!

[ls725]

My sales seem to have slow down now from 800-1k a day to now $0 today, this isn't good.. I hope Square gives me a loan even though my weekly processing might go down a bit :/. So much for being all in the green lol.

[Twpchair]

We go through spurts like that at the store. One week all cards and very little cash. Yesterday, all cash no cards at all. Next week who knows probably all cards? It strange 🤔 at times. I'm like you though customer are customers. Good luck!

[PFS36]

At this point,  a sale is a sale. I'm just happy that we're on the uptick. School has started back, so not as many folks will be on vacation and this week is payday for a lot of the surrounding businesses.  All the cash is why we don't connect a back besides our own. 

[PFS36]

Dang, I hope it picks up. Ours has picked up since last Saturday and everyone gets paid this week in our area, but the majority for the last few days has been cash.