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.

[Tyconcrete]

Nothing yet sitting at 85% .but I have only received one passed offer on a Sunday  other 5 were ona teusday so .Hopefully it will send me one today. 

[hotpot1]

Square has definitely either stopped or slowed down on offering loans to the Food Industry while other industries are still receiving loans. I’ve paid off multiple square loans within 3-4 months. Been paid off since June and no loans, everything green and sales higher. I wish they would just release a statement saying they are not lending to restaurants at the time being and. Will be revisited in 2025.

[TheRealChipA]

Square has definitely NOT stopped loans to F&B sellers.  I sell ice cream.  I’ve received over 4 offers in the past few months, and I’m not even in the market for a loan.  I know a local coffee/pastry shop seller who is also getting regular loan offers.  It’s never a good idea to generalize because of our own experience, because that scares others needlessly.  So, for anyone reading this, the F&B industry IS getting loan offers.  However not ALL F&B sellers are getting loan offers.  That’s about all that can be said, really.

[Twpchair]

It's so hard 😫 when people get used to something and boom 💥 changes. I received one, and I really didn't want to post here at 69% and 4k higher than the last offer in March. I usually get about 5, maybe 6 a year. I don't take them from about May to Christmas. That's my busy time of the year, and winter in Michigan has bipolar issues, I think. That is when I know it's going to be a bad winter, and I probably better be looking at my loan section. I have a revolving line of credit, and I make sure 💯 I have it completely paid off before winter just in case I don't get an offer in the winter. My other issue is that I won't take an offer at 69% paid off and roll over roughly 30% into my latest offer. There goes instantly 30% of the new loan that I needed through the winter. That is just me, and thankfully, there are no huge issues like others on here that have been waiting and could really use a kick start. Pizza ovens down, hood vents out, 2 lawn equipment out. It's really hard for me at times, and I've been there done that, and it really does suck at times. People have no idea how much of our lives we give up as small business owners it's 24/7, and just about everyone wouldn't change a thing. I'm watching daily big box stores and restaurant chains closing up daily, and yet here we are pushing forward! We got this

[kkphoto]

Wanted to give some hope to others - I was sitting at 89% paid off, with some of my factors noted as "needs work", and I got a loan offer last night higher than my previous loan! Waiting for it to be approved now.

[Healthyketo]

THATS AMAZING NEWS! Thank you for sharing this gives me hope! Praying for a lot of us that have been waiting for so long!! Congrats! Hoping for the best!

[Koleen1234]

That’s awesome! Congratulations. What type of business do you have 

[PFS36]

Congratulations! Which industry are you in?

[kkphoto]

Wedding industry, photographer.

[Paulynne]

Do you mind sharing which item needed work?

[kkphoto]

Processing volume/card sales. Mine have been lower than last year.

[Paulynne]

Thank you, and congratulations!

[Robgrey]

CONGRATULATIONS!  Im currently at 73% paid back, by this weekend I should be close to 80%   

Looking forward to my next advance 

[cmeshine]

Was the loan amount greater than your previous loan offer?

[Twpchair]

Thank you so much 💓 for sharing please 🙏 continue to!

[Twpchair]

Yes, it's higher than the previous loan. Let's keep this going!

[VanKalkerFarms]

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 

[Twpchair]

Thank you so much. You are my hero! It's so hard 😫 and I wished more people used this forum so people could see and realize Square is worldwide, not just the United States. I see a couple of people from Canada and England on here regularly, and besides that, it's honestly about it. But people do need to know that even though Square is worldwide, it's still lending daily hourly etc they are a business and have share holders to answer too as well. So, if things slow from just the ones here, they have to answer to them as well.  Last year was identical so far, and boom, come September till about late/mid June it slowed down and then went crazy. I feel so bad because I know sometimes sh*t happens like the hood oven 😪 unfortunately, without having a backup like we do with a line of credit you are caught. I would be fired after the end of the day if I worked for Square because I would be like Oprah, and you get a loan, you get a loan, and everybody gets a loan! 😆 🤣 😂 unfortunately, I get to work like everyone else 24/7, I think 🤔 

[Tyconcrete]

 

[Tyconcrete]

Looks like square is doing pretty  ok this year .Hopefully the losses up on the lending  .

[Twpchair]

Yes, they do very well each year. Each year is better than the previous year, and they lend the most as well! Each quarter seems to go up and up. I know it's hard or mind-blowing, but being worldwide and Square is top rated, they really are lending each and every day. I would have to ask what percentage post here. Personally, I noticed that about 95% are from the USA, and I have seen a good amount from England and Canada. I can't say if I have seen any other countries at least posting here. I really wish more people would use the community threads. It helps others waiting for an offer. There are some great threads on here, and most just don't know it or don't use it. Looks like the books and numbers were good, and the market is semi stable. That's good, so hopefully, it loosens up in our Lil town here loanerville. There are too many people that really could use one bad. They have equipment that isn't working, leaking roof, and the other is being pushed around by big box stores stuck in the middle of 2 that moved in on both sides of hers. Let's see this bust open! Good luck!