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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[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  .

[PFS36]

Was wondering, too.

[Tyconcrete]

Be nice to know if anyone knew .thanks in advance. But hopping and pray that people get the help they need 🙏 God knows I need it to making it easier. 

[PFS36]

Amen! Every time I see that someone gets an offer, I get excited for them. I really enjoy seeing everyone succeed in small businesses. 

[Tyconcrete]

Ameen  we all have to help one a other. Us little businesses. 

[Swain]

No still waiting now I’m hoping to pay it off fast so o get all my profits 

[hopecafe]

Sales way up at all locations (5 total). One has been paid off for months - no offer. One is 96% - no offer. One is 82% - no offer. Have two others. 71% paid and like 15% paid. Everything is green across the board in all five locations. Best sales we have had to date (7.5 years), and nada. 

[Kpramos65]

Anyone got a new loan lately I have paid 80% and still no offer

[TheRealChipA]

Hi @Kpramos65.  Square Loans are going out regularly.  I have received one offer a week for the past month or two.  Having said that, it seems that new offers for existing customers are still being delayed.  While they used to start sending new offers at as low as 70% completion, that is not the case right now.  Most offers I’ve heard about are not starting until the high 80% and low 90% and many sellers aren’t receiving new offers until their existing loans are paid off, with some waiting for a few weeks after they’ve paid their loans off.  Everyone is different.  Something about your account is causing the loan black box to delay a new offer.  Once it is ready, you will receive one, I’m sure.  Good luck!

[Healthyketo]

Nope been paid off since June 28th all green on good standing and nothing 

[Tyconcrete]

Has anyone in August 2024 gotten any offers .or any insight as to why it's not getting a offer at 83 percent 

Been with Square for going on 5 years now and a few more months had several loans in the past one was 16k one was 24 one was 34 one was 49 one was 46 last one was for 69 always like clockwork would always get an offer by 80%. Always paid on time ahead of time and we surpassed  minimum payment every time .and it's like now at 83% and no offers what's going on I know square has made a ton of money off of me from credit card processing and all in the total of five years probably have processed well over 2 million dollars and square seems to not give a crap about its loyal customers when they need a loan the most very disappointing as soon as this one is paid off I am really looking into getting a new credit card processor with the fees that they charge you and everything else they're making us jump through hoops it's crazy

 

[TheRealChipA]

Hey @Tyconcrete.  I can give you some insights but of course no concrete answers.  

First, loans ARE going out.  I’ve gotten a half dozen offers in the past few months, but I’m not in the market for a loan through Square right now.

Second, almost no one with a current loan is getting new offers at 70-80% currently.  This has been the case for well over a year and I don’t see it changing anytime soon.  Why?  Because if you read the news, or follow the financial journals, you’ll see that all lenders are being very conservative about how much they have on their balance sheets.  Rates with the Fed are still high and will only come down slowly.  There is talk every day of a looming recession, which I think is crazy since the signs for recession just aren’t coming together.  But markets don’t like that kind of talk.  The point is Square is not the only lender who is holding back.  I’ve seen sellers here waiting until the 90% range to get a new offer, and more than a few who completely paid off their existing loans and then waited a while before a new offer showed.  This, as they say, is just the way it is.  The lending market is being highly conservative and cautious.  Hopefully, that will change soon.

Lastly, it seems like the point of your post was to say bye because you are just sure that there are better card processors out there will give you all the money you want when you want it.  If that’s the case, I wish you well.  It’s really never a good idea to switch card processors just because of the possibility of loan availability.  I know a few folks who did that and regret it.  One is still waiting — after a year —- because they are still building up card processing history with their new processor.  One other I know is very disappointed that they are only getting offers that are half what they were with Square.  Another hates her repayment terms.  Point is, the grass is almost never greener on the other side.  It’s still just grass.

One more thing.  This year I realized that my cash flow and sales were more than sufficient to qualify for a traditional Line of Credit with my local bank.  I applied — solely on the strength of my business credit and profile — and was approved.  Many of us find here that there comes a point where the Square repayment terms (which are, after all, merchant cash advances and not traditional loan terms) just don’t work for us or make financial sense.  It’s not the fault of the Square Loans — they serve their purpose quite well and help lots of folks getting started.  Anyway, I found that it was a good idea — and finally time — for me to move on from Square loans and find something with more traditional repayment terms, etc.  From seeing the numbers you freely shared in your screen shot, I suspect you might be one of us.  But, of course, that is unsolicited advice, eh?

Regardless, I wish you well.  And, if this LONG reply is too much — and all you meant to do here was gripe and complain and didn’t want feedback — then please accept my apologies.

[Twpchair]

Unfortunately, you are 💯 correct! I try to tell people to please go jump on their sites or reddit, and it's the same thing everywhere. And please 🙏 don't listen to a Rep. trying to sell you their products and equipment and guarantee in a couple of weeks after everything is all set up we can double your offer! 😆 🤣 😂 it's not funny, honestly, because you are 100% correct it's right there in black and white under loans. You start out just like square in 6mths-12 months with your 1k offer. Hopefully, it breaks soon, everything calms down, and lenders will get back to normal. Until then, just tuck that percentage away and let it build up. 

[Healthyketo]

You are on the same boat as a lot of us. I’ve been paid off since June 28th all green in good standing and nothing. Had 6 loans with them and paid off all way before the due dates and no offer in sight! Very disappointing! 

[Tyconcrete]

It is but hopefully 🙏 it will come soon

[cmeshine]

Yes, received a loan offer at 83% this past Saturday.