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.

[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. 

[jackiebee12]

Yes, we have a seen a lot of people jump in without any prior experience. I’ve worked different food industries from production, to auditing, and restaurants. I have my bachelors and masters in food science and food safety and have worked my butt off to get my restaurant going but we’ve had so many setbacks with our ac, our vent hood, our electrical. last week my window was shattered by a rock!! 

my sales have been up and down and my tax return got lost by the IRS. my life is murphys law sometimes but our community and my staff usually rally behind us. we just need this loan so we can BREATHE 

[PFS36]

I understand completely and was just saying that sime, not all . Our vent hood went out last week,  plumbing needed work, short-staffed,  etc, so I get it. Not to mention food costs, utilities and everything else under the sun has gone up.

[Twpchair]

I don't get it why customers are surprised if or when a restaurant or food truck raises prices? 1. Where have you been the last 2 yrs? Do you eat, shop, and put gas in your car? It truly baffles me to go leave a review of great food. Great service, but prices are almost doubled! 1 star. Apparently, small businesses are supposed to just go in a hole and absorb all the higher costs so you can still have your 5.99 burger. Nope, of all sectors and all areas, we get it the most! Small business is the backbone of the world and we are on our own right now and without you or me and all of business good luck shopping at Walmart only or hope you don't get tired of the golden arches. You want a pizza. Hmmm, I hope you like little Ceasars. Yuck! Sorry for the rant 😅 I get tired of it too. Good luck!

[Tyconcrete]

Oh I get it buddy believe me .it's nuts I asked a lady were do you live under a rock or what .can I have a ranch yea how many they are this much .oh!!!!? There not free yea I go get them free they don't charge me cause ism a nice guy .lol it shocks me as to what people think and expect. But thanks for ur input 

[Twpchair]

Ughhhhh, hello, my twin is in the IRS department! Thank goodness I use a bookkeeper every month and yearly for 12 years because they can't find mine this year after 12 years? I stress about my shish tzu not eating, let alone taxes smh but our accountant said that is what I'm here for, and your company is covered for 5 million l😆 😂 😅 🤣  I wished! Oh, our roof yesterday had a limb from a "strong storm" tornado really stuck a limb in my roof and I'm not there due to a family emergency and friends kicked in and kept the store open for 7 days! Ughhhhh, hun when it rains it pours! Do you have a good relationship with your bank or credit union? I have a great small 5 branch credit union and got a line of credit in about 2 hrs and an account set up and cards everything link and done. I'm not trying to steer you away from Square but if it is an option until an offer comes? Please 🙏 keep me updated and let me know how you are doing! Good vibes your way!

[BodyLabPhilly]

I’m in the spa/wellness industry at 92%. Nothing yet.  It will be my 7th loan. Normally get offers around 75-82% 

[Tyconcrete]

I believe it's all across the broad  .