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.

[Twpchair · Accepted solution]

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

[hopecafellc]

Just got a loan offer on one of our locations today!! (Still waiting for approval, so not singing victory yet). 
85% paid.

Sales 116% from same point last year. 
7 years with Square.

This would be our 11th loan. 

Offered 35% less than last time, the equivalent of one month's gross sales. 

[PFS36]

Woohoo!!! Congratulations 🎊 

[Toripori]

Still here, still waiting! Be nice to see some other UK based posters so I could compare what I’m seeing on my dashboard etc, I suspect it looks different to US based as I have no way to see when the last time the algorithm updated my account lie you guys do. Paid off since April on a 27k (first and only) loan which was paid back in 9 months and always way ahead of my 60 day minimum.

[Healthyketo]

Anyone gotten anything yet? 🙏🙏

[PFS36]

Not even a High Five or Birthday card lol

[Koleen1234]

No! Really need it 

i think i am in the same boat as everyone else 

[Bonzy2010]

81, all green still nada

[PFS36]

At this point,  I've decided to start collecting aluminum cans off the side of the highway.  Might possibly start selling pics of my dog's paws on onlypaws. 

[Bonzy2010]

let me know when you want to start, I'll join in and we'll double the cans collecting 

[PFS36]

You got it! We'll load a truck up lol

[Tyconcrete]

I come help I get a semi .I noticed my updates are all ove one day a 1pm then 3 pm 2pm 4 pm 6pm all over .not sure how or if it's normal or not. But anyways keep on doing what we are .I pray 🙏 🤲 every one that needs it hits tonight or very soon. 

[PFS36]

Our update has no rhyme or reason. It can be 1pm or 5pm. 

[Tyconcrete]

I did go back and look at all my past loans 3 of them came in on a Sunday and 3 were on a teusday  so .not sure if  that means anything or not so .

[Bonzy2010]

my updates have been all over the place too..between 1pm-5pm ct not really consistent so I asumme their system just do not have a standard time to run the update

[Swain]

Every single loan of mine came in on a Tuesday. 

[Tyconcrete]

I had 2 on a Sunday. 1 on a Monday and 3 on Tuesday. 

[photoguy2019]

My last 4 have been Wednesday,Wednesday, Monday and Saturday.

[Bliss-B]

Hi Everyone, I hope you are all well. 

I've just swapped over to Square from another payment merchant ( about a month and a half ago ) I was wondering how long did it take you for people to get their first offer. 

We hit all the metrics on the checker pretty much in the first two weeks of using the platform. If it takes a few months or say 6 months I'll stop checking it every now and again for a while 😊

[ohboi]

When we first used square we got an offer our first  2 weeks in. But times have changed so not sure if that information is relevant anymore 

[Healthyketo]

When I started with Square back in 2021 I didn’t get my first offer until 10 months later.

[PFS36]

I think ours took about a month,  but not sure.  I know we processed about 40k that first month and a half.