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.

[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.

[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!

[Healthyketo]

AWESOME!! Hope I’m next! 🙏🙏🙏

[Tyconcrete]

That's awesome glade for you hope everyone one else is soon

[Twpchair]

Congratulations!!!! I'm so glad to hear this and higher at that! Thank you for sharing and helping others, trying to hold strong 💪 

[Malamaark]

Wish it was easier to determine eligibility, have had my last loan paid off since the 29th of June and still no new offer, everything in the green sales up and increasing each day, have an opportunity to grow the business with a small loan but nothing yet  fingers crossed it won't be long 👀

[Twpchair]

Good luck to you! Growth is amazing 👏 it's been rough as you see. I truly wish you the best, and hopefully, that Ole algorithm will kick in! Please keep us posted. It does help others to get a feel for what is going on with the loans.

[Craftsmandrywal]

Hello, 

we have had 2 loans with square and fully paid off our most recent on July 9th.  We fully expected to receive a new offer and 1 month later we have nothing.   Everything is good and green.  Our sales are up 842% from last time they offered us a loan. Weve never been late.  We paid off both loans early.  Ive called customer service 3 times and nobody will telll us whats holding it back or help in anyway.   @ links to members

[TheRealChipA]

Hey @Craftsmandrywal.  First, I know for a fact that loan offers are going out.  I’ve receive at least 4 (a few more I think) in the past few months, even though I’m not looking for a Square Loan.

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

It seems that right now Square Loans are coming later, even much later, than in the past or what sellers expect.    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 (weeks if not months) 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.

Unfortunately, no one at Square can tell you much more.  Square uses an automated algorithm to determine whether or not offers will go out, and human intervention for this process does not exist.  The loan status dashboard just highlights potential problems and bottlenecks, but it DOES NOT guarantee that if everything is green then an offer should be coming — soon or otherwise.

If you really need money now, of course I’ll suggest that you reach out to your local bank or credit union.  They might be able to help, but they might not.  This conservatism and reluctance to have too much loan exposure on balance sheets is worldwide right now, unfortunately.

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

[Healthyketo]

Sounds like a lot of us. Been paid off for 7 weeks already never late on any of our loans and no new offer. Very sad!

[coolcoffeecrumb]

Yeah, I have been paid off since June 8th, all green, no issues, no loan.  I have spoken to them and same generic answer.  Very disheartening.  

[Tyconcrete]

I have called as well same bs .they say nothing is wrong with account so .

[Twpchair]

It is, and I jumped on other pos forums, and they are not happy and passed given up on it. 3-4 have been waiting since last summer when it did this. A couple of them went to their banks, and they left right away. They said 802 credit score been with them for years, etc. Sounds all great until they wanted their vehicles as collateral the husband's work tools, and they left over a 15k line of credit. I hate to see people hurting that need it to replace broken pizza ovens or an opportunity to expand and grow. People send me messages and ask why did she get it 82% and need to work on multiple items, and I'm up 200% all green and paid off? I don't know believe how that algorithm is set or if this page would be empty! But I see our new little town loanerville is growing fast. Good luck 👍 💓 and I hope it is tonight for you 

[Twpchair]

It's not you if scroll down through the feed. There's a good bunch all paid as well. Lending is tight right now all around the world. When they start talking about and using words like the stock market just crashed all over the world and recession it's lending usually 💯 has shareholders to answer to and books that need to be good it tightened up. We also have an election coming up and they are watching that as well. All we can do is keep each other updated on share information and hold tight. Hopefully, with those numbers that Ole algorithm kicks in and picks you off. Good luck to everyone waiting 

[BlueStarDFW]

Square is so weird. 
I got an offer and approved in less than 4 minutes. I just paid off my last loan a few hours ago. It was a bit less than my last loan. But definitely helped in the nick of time!

[Tyconcrete]

That's awesome congratulations 👏. Happy for you

[BlueStarDFW]

Thank!

j will say, I was at 86% paid off for two days as I was taking small payments for a fundraiser we’re doing right now. But all green.

Then processed a large payment, which paid off the balance of the loan. When the dashboard updated, it said I was not eligible. Then a couple hours or so after it updated for the day, I got the offer.

Again, it was like 20% lower than my last loan, but a surprise offer nonetheless.

[Twpchair]

Congratulations!!!! Thanks for updating everyone waiting