New Square Loan in 2024

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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.

[PFS36]

Hopefully it's your day! We've had a great weekend so far great sales, but still 75% cash. We're at 86% all in green and still no offer.  Could possibly hit 87% by tonight if the traffic keeps up as it started this morning. 

[Twpchair]

We have had a major cash and check week! This was our busiest cash week all year! No reason for it usually we have an odd day of cash but not the whole week!

[PFS36]

Us too!! I mean,  we'll take the business, but we took in a lot of cash. It's  very weird. 

[Twpchair]

Good luck to you! I've been waiting for you to announce that loan offer!

[ohboi]

Does anyone have the Square Credit Card? Apparently there is a business credit they have but you cannot have a loan and card at the same time. You have to have one or the other. Can anyone shed any light on this. I’m 2 months paid off and by Gods grace haven’t needed the loan but it does help give a cushion. 

[Twpchair]

I would have to check into that I know a couple that have both card and loan. I don't know if they had a loan going on and then received the card? I'll let you know today, though. 

[Twpchair]

Yes, it's being tested and used in the Beta group and going pretty smooth. As of a few days ago, I spoke with one who had it and started from day one. You are correct if and or when it is offered to others (if) you can't have both a credit card and keep getting offers. Like anything else and major companies, things change, get adjustments, or sometimes just scrap. But right now, it's getting used for those who qualified in the Beta group, and they seem happy with it. Hopefully, this economy and this world will calm down and get back to normal and lenders and banks can relax and get back to making money!!! Good luck to you and everyone! 

[locksmithnick]

I have both. I got the Square Credit Card back in November, $17,000 limit. I also got a $30,800 Square Loan two weeks after that. 

The two have nothing to do with one another. Who told you that you couldn’t have both?

[ohboi]

That’s great you have both. On the website under banking and then click on credit card all the way at the bottom it says if you have a loan you can’t have the credit card or vice versa. Not on the dashboard but on square up.com 

[Twpchair]

No, I've seen multiple people who have both and are still getting loan offers. 

[ls725]

14 days paid off now, still waiting on a loan, I've almost convinced myself I'm banned from receiving a loan lol.

[PFS36]

Which industry are y'all in?

[studio219ink]

Tattoos and body piercing

[Twpchair]

I don't get it at all? Hopefully, something will happen soon!

[Healthyketo]

Over a month paid off, dashboard just updated and no offer. I’m starting to think we are the only 2 banned from ever receiving an offer. Lol

[locksmithnick]

So who is paid off and waiting on a new offer, BUT has a Square Credit Card? Maybe that’s the issue for those waiting… 

[locksmithnick]

Little piece of info to add; I asked my Dad, who currently has a Square Loan offer in his dashboard (he’s 88% paid on his current) if he has the SQ Credit Card and he does as well. So I think that Card + Loan rule may apply to newer accounts or something. 

[Twpchair]

I'm going to ask in our other group if that's the case. I know when they first came out to people who had both? I don't remember getting any info that going forward you could only have 1?

[Twpchair]

That could be because I'm getting mixed answers in the back as well. I sent a direct message to my team leader about it. Are people who aren't getting an offer now that are paid off? Could they be in line for the card option 🤔? I'll ask that, too. 

[PFS36]

It makes no sense . Almost like us restaurant folks are put on the backburner lol

[Twpchair]

I don't think that has anything to do with honesty. I don't. We are watching the stock market crash, and 401s are just about gutted. The economy is not stable at all right now, and it hasn't been for a bit. All lenders and banks are holding tight and watching if the Feds raise the rate or let it ride out. The economy has got to get better and just get stable, and lenders and banks will start to ease up. We got this far, our doors are still open and we can do this!