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.

[cmeshine]

I got an update: I posted here last week hoping to see trends in the loan processing this year.  This Saturday received our 12th loan offer, $7K less than our previous.  We were at 83% paid off, all green on the metrics.  The amount was lower than expected, not clear on why.

[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]

Thank you for your insight.  We're at 89% and only in our fifth month of paying back 15,500.00 , so we're definitely ahead of the 18 months.  It would make sense if Square charged interest,  to want us to go the full 18 months.  I prefer Square Loans over conventional because it doesn't tie up credit from our bank in case of emergency or if we wanted to buy another home. 

[Twpchair]

I don't take every loan either. The summertime is our busiest time until Christmas, and then it depends on the winter. Congratulations again!

[Twpchair]

Congratulations! I am sorry it was lower than expected. ughhhhh, but it's something, and I hope it helps! I'm just happy to see it moving forward!

[eatMoroccan3119]

We are 81% paid now on our 58k loan. Business have slowed down though at least 30-40% drop in the last few months. It's been bad in san francisco. Patiently waiting for next offer. I assume it will be much lower since the drop in sales. We'll see.

[Twpchair]

Hun, I am so sorry. Unfortunately, I'm seeing certain states just kicking it or their line of business, and others are 200% up????? I'm in Central Michigan, and for the last 3 years of 12 years, we've been maintaining or slightly higher or the same. I don't don't take every offer. Our busiest time is now, and winter is year to year. So, I freak out in the winter 🤪 

[Twpchair]

What line of business are you in? There's one on here now from San Francisco in the restaurant industry. She is not very happy about it either. The cost of food is just crazy. I don't understand why people don't understand why 6 wings or a good burger or steak has gone up! Are they living under a rock, on a longgggggg diet? It truly baffles me with that. Each week, I go shopping and up again and again. My friend has a little bed and breakfast and she has there a small cafe and a gift shop. She showed me her spreadsheet just the last 2 years up and up wings about 60% hamburger 50% I didn't see one thing that didn't go up the take out containers 50% I told her why can't you make copies of that and put it in menu? I'm watching chain restaurant's closing up weekly, and apparently, they don't connect the dots?

[PFS36]

Oof! A 40lb case of quality chicken wings goes for 130 to 175 bucks! No mr customer,  we can not do 50 cent wing night ! It's ridiculous! I'm still trying to figure out how chicken,  the cheapest food you can farm has become the most expensive.  Anyway,  food cost are up for restaurants and consumers all together.  Square has helped us small businesses during these price increases. Hopefully ours will come through so we can transition to our new, more populated area. I'll never open in another small town that doesn't seem to want to grow. 

[Sumtin2Eat]

We are now post 15 days paid off from 4th loan. Process over $350k CC. All green and have always been! We are up over 2,000% YoY and still no offer to date.

however, in hindsight without having to pay those daily fees for loan repayment increased the rain day fund.  We can still accomplish our goals however instead of instant gratification for some plans we just have to wait it out to build up the funding.

i wish everyone the best… 

[Twpchair]

I wish you the best as well! You are kicking it and that's all that matters! I'm watching big box close and guess what WE are stronger and tougher than ever!

[MrBond705]

I just received a offer.. Half of what I received before.

[Healthyketo]

Awesome! What percentage were you at? 

[MrBond705]

86%

[Twpchair]

Great news 👏 I am sorry it is less than expected, but hopefully, it helps you out now, and hopefully, this flat line will be over and back to good! Thank you so much 💓 for keeping everyone posted

[ClubJovonnes]

Made the mistake of making a manual payment Thursday that's posted but still showing as spending in metrics. At 88% so hopefully it goes away quick and I can get an offer

[Twpchair]

It can take some time for it to post. It's been averaging around 7-10 business days to totally clear out the loan. Did you read on the loan section or know it takes some time for it to be totally clear, and then when it does, it's 2 weeks to get back in the algorithm system. I am not trying to be a Debbie downer, honestly, but I just wanted you to know if you didn't already and think it flew right through. Congratulations on paying that off and hopefully an offer to follow! Good luck to you and everyone waiting. Please keep us posted on how it's going with those who are thinking about paying it off early, especially 

[kkphoto]

Well, I accepted the offer but still haven't been approved - starting to get nervous I'm going to be denied as it's been almost instant every time before, but now it's been over 48 hours. Crossing my fingers yet!

[Paulynne]

I pray you get it. 

[Twpchair]

Unfortunately, that's taking longer, too! I see your post on top of 2 days. I would say and don't hold me to it, but I'm guessing 70% are right around 2 days and 30% the good Ole 10-15 minutes approved and wake up and paid. How come zero answer for that. Congratulations again 👏 

[kkphoto]

Omg I was just approved!! Just a recap for anybody checking in: was sitting at 89% paid off on my current loan, with some of my factors noted as "needs work" ( my sales/processing volume has been down since last year, in the wedding industry), but I got a loan offer higher than my previous loan. Took a little over 48 hours for approval, no hiccups, but scared me because usually it was an instant approval. SO happy right now! Crossing my fingers for the rest of you! Good luck!