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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[Tyconcrete]

That's awesome give me hope .and congrats. 

[Fromwithin]

I paid off my second loan, all my things are green and I haven’t received another offer.

thank you! 

[TheRealChipA]

Hi @Fromwithin.  Square Loans are still going out.  To clarify some widespread confusion, though, understand that just because everything is “green” does not mean that loans SHOULD be offered.  The status page only shows what big issues might be present with our accounts so that we can hopefully fix those.  

However, other factors come into play.  These include things like Square having limits on the total amount of loan risk they are willing to take and have on their balance sheets.  Another good example of when we might be “green” and still not see a loan is this scenario.  Let’s say that our card processing volume this year is very close to or slightly above last year.  In this case, because of persistent inflation and high interest rates, our ability to repay a loan might be considered lower.  Like most lenders, I would imagine that Square likes to see not only growth year-over-year, but they need to see marked, steady growth.  Stagnant sales do not give lenders confidence that loans can be repaid in an economy with high interest and still growing inflation.

Obviously, there is no way to know for sure.  Since Square is not obligated to offer loans we are at the mercy of their algorithm.  I just wanted you to be aware that the loan dashboard doesn’t give you the complete picture, nor does it say “all good so we WILL get a loan.”

Anyway, I can attest for sure that loans are going out.  I’ve received 4 offers over the past few months. I’m just not interested at this time.

[Twpchair]

Anything happened? Are you still waiting for an offer or did you receive one?

[Fromwithin]

Nothing yet… my account is in perfect shape, Processing cards everyday but no loan yet… I think they stopped offering loans, that was the only reason I was using square, I’m considering going back to PayPal 

[Tyconcrete]

Nothing yet sitting at 85% .but I have only received one passed offer on a Sunday  other 5 were ona teusday so .Hopefully it will send me one today. 

[hotpot1]

Square has definitely either stopped or slowed down on offering loans to the Food Industry while other industries are still receiving loans. I’ve paid off multiple square loans within 3-4 months. Been paid off since June and no loans, everything green and sales higher. I wish they would just release a statement saying they are not lending to restaurants at the time being and. Will be revisited in 2025.

[TheRealChipA]

Square has definitely NOT stopped loans to F&B sellers.  I sell ice cream.  I’ve received over 4 offers in the past few months, and I’m not even in the market for a loan.  I know a local coffee/pastry shop seller who is also getting regular loan offers.  It’s never a good idea to generalize because of our own experience, because that scares others needlessly.  So, for anyone reading this, the F&B industry IS getting loan offers.  However not ALL F&B sellers are getting loan offers.  That’s about all that can be said, really.

[Twpchair]

It's so hard 😫 when people get used to something and boom 💥 changes. I received one, and I really didn't want to post here at 69% and 4k higher than the last offer in March. I usually get about 5, maybe 6 a year. I don't take them from about May to Christmas. That's my busy time of the year, and winter in Michigan has bipolar issues, I think. That is when I know it's going to be a bad winter, and I probably better be looking at my loan section. I have a revolving line of credit, and I make sure 💯 I have it completely paid off before winter just in case I don't get an offer in the winter. My other issue is that I won't take an offer at 69% paid off and roll over roughly 30% into my latest offer. There goes instantly 30% of the new loan that I needed through the winter. That is just me, and thankfully, there are no huge issues like others on here that have been waiting and could really use a kick start. Pizza ovens down, hood vents out, 2 lawn equipment out. It's really hard for me at times, and I've been there done that, and it really does suck at times. People have no idea how much of our lives we give up as small business owners it's 24/7, and just about everyone wouldn't change a thing. I'm watching daily big box stores and restaurant chains closing up daily, and yet here we are pushing forward! We got this

[kkphoto]

Wanted to give some hope to others - I was sitting at 89% paid off, with some of my factors noted as "needs work", and I got a loan offer last night higher than my previous loan! Waiting for it to be approved now.

[Healthyketo]

THATS AMAZING NEWS! Thank you for sharing this gives me hope! Praying for a lot of us that have been waiting for so long!! Congrats! Hoping for the best!

[Koleen1234]

That’s awesome! Congratulations. What type of business do you have 

[PFS36]

Congratulations! Which industry are you in?

[kkphoto]

Wedding industry, photographer.

[Paulynne]

Do you mind sharing which item needed work?

[kkphoto]

Processing volume/card sales. Mine have been lower than last year.

[Paulynne]

Thank you, and congratulations!

[Robgrey]

CONGRATULATIONS!  Im currently at 73% paid back, by this weekend I should be close to 80%   

Looking forward to my next advance 

[cmeshine]

Was the loan amount greater than your previous loan offer?

[Twpchair]

Thank you so much 💓 for sharing please 🙏 continue to!

[Twpchair]

Yes, it's higher than the previous loan. Let's keep this going!