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.

[Robgrey]

Congrats on the offer.

have you done 137k in just card sales or is it including cash and checks ?

I didn’t think you could have card and loan at the same time Per the website. ? 

[Bonzy2010]

There's been a few people here that have said they got both. So not sure if they got their credit cards prior to maybe square making that change where it's one or the other? or maybe square just doesn't care anymore and haven't updated the site

[cmeshine]

I would think its card sales not including cash.

[ls725]

I reached out to Square about my loan, asked if there was anything I could work on and have gotten no reply in over a week, we have paid so much money to square with monthly processing fees and loan fees and now they cut us off and left us in the cold, craaazyyy.

[Healthyketo]

We spoke with square this morning with our account manager asking if they cut off lending to food service businesses cause we are a meal prep/bakery and I was told that nothing has change and the same generic response. He also said he was going to get with his Colleagues that work in banking for square and ask if anything has changed for food businesses getting an offer. Waiting for a call back. 

[PFS36]

Thank you 😊  you're too awesome!

[locksmithnick]

Mine was approved in 7 minutes. Money is on the way 🤘🏻

[ohboi]

That’s awesome locksmithnick. You got big money and the credit card! The rest of us restaurant people are out in the cold with square I guess. I just wished they would have sent out a memo and said they were not lending to restaurants anymore. 

[PFS36]

Guess we're gonna need to have a big sale on burgers lol

[ls725]

Where @?? I'm about to slide and buy some burgers from ya :D.

[PFS36]

🤣🤣🤣 Mississippi where you don't need a griddle because it's so hot.

[PFS36]

How long was it after you were updated for the day?

[locksmithnick]

Right about 2 hours. I knew something was going on within the account, because sometimes when someone is leaving me feedback or paying an invoice or whatever, my phone will get a random “connect a reader via Bluetooth in the Square App” (or something like that) and it did that, but no feedback or invoices were paid. So I went on the website, and there was my offer at the top. No email alert, just had to check the dashboard. 

[PFS36]

That's definitely a great surprise! Hope everyone gets one! So excited for ya!

[Alexis321]

Congrats!

[Bonzy2010]

Restaurant...77%, on 12th loan, usually offered between 65-75% no square credit card..nothing yet with offers

[cmeshine]

I am at 82%, and all green on the loan metrics.  If offered a new loan, this will be my 12th loan offer, according to the dashboard.  We have been receiving loans from Square since 2017.  I find posting here does help others get an idea of how Square Loans algorithm is trending on offers.  In the past 76% was the "norm" before another offer was made.  

[ls725]

I know it's pretty rough right now, everyone I've seen so far with the exception of maybe 2 people have not gotten loans even after reaching 100% paid off for weeks.

[cmeshine]

I will keep this thread updated if and when we receive loan.  I feel like the info is helpful.  

[Twpchair]

There's been about 2 per week roughly, and those came later in the week. Last week was Friday and Saturday and the week before 1 on Friday. You are right it's been a rough July and August so far. If people remember or go back last summer, it was exactly the same. Right now, I don't see much movement until things calm down.

[Twpchair]

It definitely helps others see a trend, and right now, the trend is ugly to look at. But if you or the next person all paid off and yet loans are flying out, I might start to get a little concerned. But that's not what we are seeing it's been a rough July and August period. Good luck to you and thank you for posting