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]

What is going on this weekend in our new and ughhhhh best thread in Square a fellow business owner called it loanerville and it fits perfectly! 

[photoguy2019]

Yes it does! Haha good to see you and others keep everyone motivated throughout our stay in Loanerville. I know i won’t see a offer anytime soon at 56%  but i am fingers crossed for y’all today!! 

[PFS36]

No offer here. 90% all green.  I believe the Square Master dislikes me.

[Tyconcrete]

 you me and a bunch of others as well .

[Tk45]

I got 80., 

[Fromwithin]

80 what?

[Tyconcrete]

80 % you got a offer or sitting at 80 

Or 80k

[Thatgirl]

I feel kinda safe In saying if my metrics have stayed green, my shop and processing has shown growth since first loan offer, my first loan is 93% paid and I am not eligible....I am taking it as I am no longer eligible because metrics can't show dark green can they? 

[Tyconcrete]

Don't feel to and at 85% and on my 6th loan so 😕 😫 

[Jjpainting]

This is not abnormal. I didn’t get my second offer until a couple days after my first one was 100% paid off and I’ve seen a lot of people say the same. I’ve seen some get an offer earlier of course for a second loan. But my second came after first was 100% paid. Third came at 80% then 66% then 91%. So it’s all random and different for everyone 

[Thatgirl]

Does anyone know of the secret things that get you a new loan offer? All my these are the things stay green, I am 92% paid off I have shown growth since the first loan, surpassed last years 3 months ago. They say it's these things and then what else? Anyone know are they not doing the small loans anymore? It's ridiculous they don't let you financially plan with them, makes me want to start all over elsewhere where I might make better sound decisions other than welll..ummmm.i don't know  

[perkits]

This has been a question for a while now. I've had many loans over the past few years. My current loan is almost paid, but I started receiving new offers a couple of months ago. I think part of it is your consistency in processing and maybe the amount you process.

[Healthyketo]

Hoping for miracles to happen today! Let’s pray someone on here gets an offer soon! 🙏  going on 8 weeks paid off all green no offer yet but hopefully soon! 

[coolcoffeecrumb]

I have been paid off since 6/8/24.  Since you are paid off as well, do you see anywhere that it tells you when your account is updated?  I never started looking until I was paid off, and I don't see anywhere on my dashboard or under metrics that has an update time.

[Healthyketo]

It’s on my dashboard under projected growth 

[coolcoffeecrumb]

I am BLIND!  Thank you!!! 

[Twpchair]

Go to home page and scroll to loans and click on that once there you can click on the loan circle and right under that you should your not eligible or and offer but under that gives you all your needs work, card volume, new and returning customers and it goes on. Right there, and before you click this whole information on all your metrics on the right, it should tell you like yesterday at 1:45 pm updated. Mine is usually 1-3pm 

[Jjpainting]

Omg. I was just reading up on some of these comments these past couple days and I’m in shock to see that you haven’t gotten an offer yet. I was shocked when I was on here a month ago and finally got an offer. That offer was about half of my previous one, which during my busy months didn’t make much sense to me but still better than nothing. I’m already 30% paid off after a month.  Still wishing you the best of luck!  

[Healthyketo]

Yep. Still waiting! 🫠 you will probably get another before me at this point lol 

[Jjpainting]

By the way I have seen people post and reading old posts you may be right. This is my 5th loan which is the size of my third.  Whenever I see people with a lower loan size like this when compared to sales, ive read past posts about people getting early offers that end up being like there largest loan. Cause at the rate im going, my current loan will be 100% paid in 3-3.5 months, which I just find a little silly as it’s more of a very high interest cash advance rather than a loan which to me is along the barrier of predatory lending which I know square is not about.  If I were to guess, there algorithm has flaws lol. 

I sure hope you get an offer soon. It just makes zero sense to me. How are your sales vs prior years?

[Twpchair]

Hello, I posted mine last week, mine from last year, not 3nths ago, June. All percentages higher than everyone else was used to type things. Now, I don't accept every offer that comes along, especially usually between May-December and those are my busiest times. I believe you are from Michigan, too, if I remember correctly? But last year was our busiest winter and March I had another offer again, higher percentage paid and offer 1k higher than previous loans and at % to pay back and with rolling over zero dollars I took it! I look at how much I'm rolling over and the rate. Here comes another offer at 69% paid off and 2x the amount of the previous??? I didn't post it for a bit because, honestly, I felt bad with people waiting 3 mths paid off, etc. But I didn't take that offer because I would lose 31% of new offer and then the % right back up there. I don't get it, I am not one to try and figure out an algorithm of when, if, and why? That's beyond me, honestly. I have noticed a trend with mine, and it seems to be as close as I can do. I don't know if that's what you were looking for or asking, but if it helps you or others, great. I was just asking about you last week, and if you got funding and I see you did!!! Congratulations, and I know you can burn up a loan fast!