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.

[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!

[Twpchair]

Please 🙏 🙏 tell me you have received an offer? I have had a horrible month personally or with my family and have been trying to get on as much as I can. There's 3 I'm watching and now down to 2! Good news only ok. 

[Healthyketo]

I WISH I can say yes but nope not yet! Hopefully soon! Lol I’m just living on a prayer at this point 

[Bonzy2010]

so do most of you usually get an offer like well after the numbers update for the day or do some get it during the update? I'm trying to see what the consensus is because I never really paid attention to when the offer would come in vs the daily update.

[photoguy2019]

For me my dashboard usually updates around 3-4pm and the offers usually come in later around 6pm

[Fromwithin]

How can you tell the time your dashboard updates?

[Bonzy2010]

if you currently have a loan in progress..look under the "Loan Repayment" line and it says when it was last updated with a time stamp. If you are paid off then someone else might can answer that if it is even there where it would be at.

[Twpchair]

Hello, mine ALL come later. I updated 1-3 pm Eastern time. All the offers I've  had since the metrics came into play all have been Saturday night after 2-3 busy days, and Thursday is pretty much identical. My range for % paid back was 84% 91% and 69% this last Thurs? Offers 1st one, same as last offer. The 2nd one at 91% was 1k higher than the previous loan, and last was double of my highest offer. 

[Twpchair]

Yes, after you update (mine 1-3 pm Eastern) offers 7-10 pm 

[ohboi]

Finally got a loan offer after waiting for almost 3 months. Was 100% paid off and in food industry. It was 1,200 less than previous offer

[coolcoffeecrumb]

SUPER CONGRATULATIONS!!!  You have been paid off for almost 3 months?  This gives me hope as I have been paid off for 2 1/2 months.  May I ask what industry you are in?  I am in the restaurant industry.  

[Twpchair]

Food also 😋 

[PFS36]

Hey! You still got one! Congratulations 🎊 

[Healthyketo]

Yay! That’s awesome news! Congratulations! Send some positivity our way! 🙌🏽🙏

[Twpchair]

Congratulations again! I'm so happy to see this this thread start to open up  

[Tyconcrete]

Well I spoke with a so called  loan specialist at square  .unfortunately same old things you can read up on is all the give . Very frustrating to deal with it no reason to why just there algorithm they say .lol but happy that others are getting loans pray for more people get them that need them fast 

[Twpchair]

Definitely, nice to see movement! And let it continue! Scrolling up there was 2/3 more in a day. Still need to clear some of this board. 

[ohboi]

I’m in restaurants! I thought they forgot about us lol

[coolcoffeecrumb]

Oh, now I have a lot of hope!!!!  I am so excited for you!!!  I thought they forgot about us too!!!