New Square Loan in 2024

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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.

[PFS36]

Whew! I was thinking they didn't love us anymore 🤣

[Twpchair]

Hello, you are food as well? Do you have a restaurant type business or food truck? I'm in Central Michigan pretty rural, and our mom and pops restaurants are just packed every day all. We have 3 that's it, I'm really rural 😆 🤣 and the opposite side of town where I am is fast food 5 of them coming from right there is 3 major interstates all conversing into town, going up North or down towards Detroit. Besides the weekends, our locals flood our small hometown restaurants. What's killing us is our hometown grocery store both closed in less than 6 months after aldis, Save a lot, and Walmart moved in all within 3-6 mths of each other? I'm just curious how the market was for the food business is all. I kinda had my eye on a food truck just to put in our parking lot at our business. 

[Jjpainting]

Hey a fellow Michigander. I’m based out of walked lake but 95% of my business is in Ann Arbor. Don’t really have a point to this just saying hi to a fellow Michigander lol

[ohboi]

Got approved and in my square balance all in 5 minutes. There’s hope all my restaurant people!!! Let’s goo 

[Robgrey]

Congratulations 🎊 

what kind of processing have you done this year  and loan did they offer? 
Again congratulations 

[PFS36]

Restaurant people unite!!! 🤣

[Twpchair]

Ok 👍 wow so happy to see our loanerville light up! Congratulations to you 👏 quickly too! Let's keep it going for all those waiting! I'm so happy to see you get an offer. 

[Fromwithin]

I got an offer tonight!!!! Finally! After being paid off for 2 months! 

[PFS36]

Congratulations 🎊 👏 which industry ?

[Fromwithin]

Thank you! Retail 

[Koleen1234]

Congratulations 🍾 

[Swain]

That’s awesome !

[Twpchair]

Oh, I love it! Look at boad. Congratulations 🎊 👏 💐 

[Twpchair]

Finally! Look at this!!! Let's keep it rolling!

[coolcoffeecrumb]

So I got an offer last night.  Although I am happy to have one offered, it's an absolute slap in the face.  My last offer was a Sept 2023, $25k and only took $15k.  Paid off June 8th.  Last night they offered $3570? I mean sales have slowed down but are now just picking up.  Has anyone not taken a loan and then waited and gotten offered a bigger one?  I am a coffee shop/bakery.

[Bonzy2010]

wow...that's barely over 1/5 the previous haven't seen one that much lower vs a previous loan

[Twpchair]

I have, and honestly It was mind baffling. The new offer only covered the 21% he owed?? So if he took it he received zero money and paid off the balance 🤔 that one I've never seen before.

[Twpchair]

Ughhhhh, I can say congrats, and unfortunately, I cut it short like your offer smh. OK, let's get this rolling. Yes, I don't take every single offer. Maybe go 50/50. Now, this is me and my situation only OK because we are all different OK. Yeah, years ago, I could say I  would receive an offer and not take it, and depending on the first offer, I have received higher offers, and a few were lower. Lately, in the couple of years, if I don't accept it at first, I have received offers, but for myself, only none were larger they stayed the same or lowered it. Again, that has been my experience. The next person might have a totally different experience, though. Myself, I like to see multiple people commenting on their experiences in this area. Just sharing information and experiences might help someone else. But again I'm retail furniture and unfortunately how I process, how much is new/returning customers etc. We truly are different from each and every one else. Good luck truly, and I know it's hard and stressful. This is your busy time. You will be processing more and could probably pay that back pretty fast. Is this that moment when they say welcome to owning your own business 🤔 😕 Keep us posted if you don't mind. I'm curious to see if that offers and that you take it and pay it quickly if that triggers one soon after that 🤔 

[DaphySomm]

I got an offer of 8200 last week. I chose not to take via advice from these threads to wait for a larger offer. My offer dropped to 6950. I called in Monday to ask what happened and was told nothing was wrong and there was no reason why the offer was lower. I processed more, am all in green. I also noticed the repayment rate significantly higher than ever. I was warned if I do not take this offer another one may not come through or may be even lower. 

[Jjpainting]

Yeah this is just ridiculous. Just out of curiosity, your last offer of $25k, was that offer much higher than the previous.  My 4th loan offer last November was almost double the previous one, then when my 5th offer came last month, it was cut in half back to the amount of my 3rd offer and I’ve noticed that most of the comments on here, from who just recently received an offer and it was much lower, was the same scenario as me. I’m already 30% paid on my current loan and only one month into it. 

[Robgrey]

Currently @ 79% paid back in just under 6 months.  Waiting for my next offer!!!