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.

[Twpchair · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[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 

[Healthyketo]

🙏🙏Thank You! I’m praying for someone to get an offer today. Lol haven’t been updated yet so there’s still hope! lol 

[Tyconcrete]

Praying as well hopefully 

[Tyconcrete]

Question so do you update first then after a few hours get a offer if they do or is it update with a offer  🤔 anyone know I have never really paid attention to this in the past on 7 th loan .sitting at 84 percent. At least only good thing is have $12,342.68 

.left on a 69k loan so .Just wanted to know if anyone knew 

[Healthyketo]

Has anyone gotten anything lately? 

[itisnotjustpiza]

Negative.  Still waiting and sales are up.  

[Twpchair]

I didn't see you 😕 I was hoping so bad to see this board clear, not fill up! It's rough, and I wish I could tell you that it's coming hold on, but I'm seeing it everywhere, and it's not good. All lenders are holding tight right now, and when the news talk about the market crashing all over the world and then "recession," they are watching. They have holders to answer, too. If the media would stop with talks like this and raise that interest rate now, smh. It's got to settle down from a crash to up and back down it's crazy. I really hope you and so many others get something soon. I really have been there and done that, and I know. Good luck and keep us posted and keep pushing them sales! 

[Tyconcrete]

Thanks like I said at least almost done so I may not end up needing it school back in now tx .so sales going up everyday little by little so .12k and change left .

[Twpchair]

I'm retail furniture, and this is our busiest time of the year till Christmas, but in Central Michigan, I sometimes freak out if it's a bad winter. That's when I make sure my line of credit is at the credit union and all late spring till the winter. No loans, and I put 10% a day away in my savings account, and I don't touch it. I can pay bills, keep up with supplies, etc. It adds up fast when you're busy, and you can put 50-100.00 away, and you get that interest. Good luck 

[PFS36]

Nothing at all. Something seems weird with the food industry at this point. 

[Healthyketo]

Right, my thoughts exactly! Probably too many restaurants closing down and defaulting on loans. But if only square would jump in and extend the capital that maybe could have saved a lot of places. Who knows? 

[Swain]

We are a window cleaning company and have had multiple loans in at 81 % and nothing 

[Healthyketo]

You should be receiving something soon. Alot of us food people been paid off for a while and no offer. I’ve been paid off since June 28th and still waiting. Sales are up all in green and nothing 

[PFS36]

Still nothing at 89% all green,  sales ticking up (mostly cash) . Guess we'll just roll with it and get it paid off. We'd love to have a boost, but we're getting by.

[PFS36]

You could be correct.  We see a lot of people that have no experience in owning a business,  much less a restaurant and they get money then go buy items they couldn't afford before rather than putting back into their business.  We put everything back into the business.