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.

[MrBond705]

Wow this crazy..

[MommaRavs]

Been with square a long time. Loans always paid off on time. No offers up to now. 🤔🤔🤔

[Twpchair]

As you can see, it's not just you. Unfortunately, it's been a very slow couple of months. Hopefully, things will pick up soon! Good luck to you!

[studio219ink]

I've decided I'm just going to pay off my balance. If i'm going to wait for another loan, I'd rather be collecting 100% of my money while doing so.

[PFS36]

Yeah, I've given up on an offer.  Just more money in our pocket once the loan is fully paid. 

[Twpchair]

I don't take offers all the time especially in the summer that's our busy season. Sometimes in the winter I will if needed especially in Michigan and how bad the winter is. But I do in the summertime put 10% away in square savings and that way I don't touch it. Come fall I buy inventory, sale items, whatever I need at the store. Hun, it's rough out there and unfortunately imo I'm not sure if we've hit bottom yet. That's why I watch the market and all lenders and they are holding tight and watching too.

[Twpchair]

That's all any of us can do right now. Hopefully, things start to give soon!

[BlueStarDFW]

Anybody ever gotten a loan on a Saturday? Or is it only M-F?

[Healthyketo]

I’ve gotten one on a Saturday and one as late as 11pm on a Sunday 

[Twpchair]

Most of mine are Saturday night after 2-3 busy days. I usually update 1-3 pm Eastern time and anywhere from 7-10 pm offer comes in. By Monday, cash is in the bank.

[Koleen1234]

Is anyone getting loans 

[PFS36]

Not too many on here.

[Twpchair]

It's been pretty slow the last month and half, unfortunately. 1-3, who at least post here jump in here weekly and let everyone know they received an offer.

[PFS36]

89% updated an hour ago,  all green,  sales up. No offer. 

[Twpchair]

Ughhhhh, I know I watch every day to see if a group of you updated and any offers! I'm rooting for you! Come on, Square is the first one to open up and let that money 💰 roll!

[BodyLabPhilly]

At 92%, all green. Just updated, let’s see if it’s everyone’s lucky day today.  

[Twpchair]

Fingers crossed something breaks soon! Good luck to you and everyone waiting!

[Healthyketo]

Updated around 1pm today all green and still no offer. Go figure!! Another week waiting i guess

[Twpchair]

It's been really rough and ugly 😪 unfortunately, I don't think it's going to change for a bit. The real chip is 💯 correct. It's not just square, but everyone is watching and waiting to see what happens. Are they going to raise rates, is the market going to stay steady, and the list goes on. You will still see people posting "finally got an offer" here and there, but unfortunately, the days of almost like clockwork 70-75% I believe are gone for a bit. We got this, though! We are still open when so many are closing. We have gone through the good, and the bad we gotta just keep pushing forward! Good luck to you and everyone waiting! 

[PFS36]

As much as I'd love for us to get an offer,  I'm pulling for you 100x more. At this point,  it's basically a waiting game.  Hopefully the second half of August will be generous to everyone waiting.  We just need this extra boost to get a few things.  Praying for everyone waiting!

[Koleen1234]

I agree the wait  game is nuts. Definitely needing another loan and square gives zero answers