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.

[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. 

[locksmithnick]

Mine updated at 5:05, sitting at 75%, but no offer yet. Processed just under $30,000 in July, hit just under $1,000 today. 

Today is SQ earnings, so that could possibly cause a delay. However, the did BEAT their ER, so way to go! 

[PFS36]

Block stocks are dipping,  today so that could play a part. We're all in green and updated at 1:30 cst but no offer.

[Healthyketo]

Updated at 3:36pm cst no new offer sadly. Been super slow today but since I’m an online business sales usually don’t come in until later in the evening. Metrics still green and good standing so I’m thankful for that. Still hoping for an offer soon. Would be amazing especially at the beginning of the month. 🙏🙏

[hairkandi74]

Account updated and I had an offer waiting for me! Now here's hoping it doesn't take too long to approve.

Praying for the same good news for you all soon! (:

[PFS36]

Awesome! What were your metrics and percentage?

[Jjpainting]

Awesome news. Congrats. My offer came a couple weeks ago and it took less than 5 minutes for approval and deposit into my square account. I’m in my 5th loan, 4 of them took 5-30 minutes.  I think one took like 8-9 hours. 

[ls725]

JJpainting I know you’ve been waiting for a while now, congrats!

[Twpchair]

Congratulations!!!! That's a couple posted this week!

[Alexis321]

2 weeks and still no offer. All paid off and all in green. Wish I knew how they work these loans and why it's such a big secret! 😔 

[Alexis321]

Just received an email congratulating me on paying off my previous loan but no new offer. That's a start I suppose!

[BodyLabPhilly]

Just hit 90% paid off, still hoping that an offer comes through.  Last week sales dipped and dropped into “needs work”. Had a few bigger transactions at the beginning of this week so we’re back to all green. 

Hitting our slow season, so could really use it now.  Good luck to everyone else waiting! 

[BodyLabPhilly]

Just hit 90%, hoping for an offer.   Sales dipped last week and put us into ‘needs work’, but have been all green since Monday. 

We’re going into our slow season, and usually have the loan by now to help us through.  Good luck to everyone else that is still waiting!   

[jackiebee12]

we just hit 90% too! sales have been better today than last week and the last couple days. crossing my fingers and toes 

[locksmithnick]

I think mine is delayed because I went out of town Sunday-Tuesday, and then hit 75% on Wednesday. 20 loans in 10 years and I’ve never had to go beyond 75%. We’ll see what happens…