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.

[Twpchair · Accepted solution]

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

[Lynix123 · Accepted solution]

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

[Robgrey]

I don’t think they base the offer just on processing. I keep a ton in savings folders. I think it’s based on many things AI 

[Twpchair]

You are correct! They have shareholders to answer to, the market, the economy, the Feds, and interest rates all play into as well. But, all of the above has started to mellow out and maintain pretty steady. The Feds indicated they aren't raising rates, and that makes lenders feel better to open up a little more. Hopefully, offers can come up some and more going out! 

[Twpchair]

Ughhhhh,  with you and your year ordeal, I was screaming with joy just to see you post you got an offer! Unfortunately, it is lower than normal, but honestly, about 90% I've seen have been. Hopefully, things will pick up and offers with the latest news from the Feds. The market isn't crashing but is maintaining pretty steady, and that makes lending companies feel better.

[Twpchair]

It's all computer generated. If they start asking for information like bank statement or business licenses, then a person is looking at it. After that, I'm not sure if that person determines your loan or back to the algorithm to determine your factors and offer. I'm guessing only I'll take number 2 on that. Anymore offers are tending to be around the same as the last one or lower. Anymore, I'm just happy to see them moving! All the factors outside of sales are starting to Mello, and Feds said they weren't raising rates. Hopefully,  things will pick up and the offers. Way too many 2-3 mths completely paid off and no offer yet? I want to see this board to just light up with offers! Good luck to you and everyone waiting! 

[Twpchair]

Congratulations again and way to go! When I see big box chains closing up and small businesses kicking it, I love it! Sometimes, it's hard for me to see small businesses pushed to the side when, at one point, we were always considered the backbone of America and around the world. I love it and way to gooooooo!

[Robgrey]

Absolutely 💯 

keep up the good work!

[Paulynne]

So it’s looking like you basically have to be paid off for a while to get an offer. Is anyone getting an offer with 70 or 80% paid off?

[PFS36]

I'm at 90% and all green.  No offer. 

[MommaRavs]

Fully Paid! And no offer. So sad for small business like us. 

[Twpchair]

I know it is. I really hope this breaks soon and lenders start to loosen up. Good luck to you, really.I know it's hard, and prices are just going up and up with supplies and inventory it all adds up way too fast. Please keep us posted it helps others to kinda gauge what is happening.

[PFS36]

At this point,  I think a few of us have a better chance at winning the lottery while getting abducted by aliens. 🤣

[Twpchair]

Yeah,  I don't recall ever seeing so many people paid off and no offer? I believe last week 2 people paid off and received an offer. Yet others 4/5 times a year 🤔 good luck to you, really, and everyone else paid off or not. I'm really hoping with all the factors not including you, but everything else is starting to stay steady, and the Feds indicated they weren't raising rates, which helps to open things up.

[PFS36]

Agreed! Hopefully we all get good news,  soon.

[Twpchair]

It is and I'm 😞 sorry. I really hope things start to open up soon and lenders will start to open up. Good luck to you!

[Twpchair]

Mine last 3 went 91% then 84% and my last one 69% ???? I went to look at my factors after a really busy 3 days running a sale and boom there it was. The only thing I can figure out was the sale, and a really big increase in sales triggered it? Good luck and fingers are crossed!

[Koleen1234]

I am at 75% 

Always had an offer come in and patiently waiting 

[Twpchair]

I'm so glad you said patiently waiting. I'm sure you have scrolled down and have seen the trend right now. Good news, hopefully, the Feds indicated they were not raising the interest rate. The stock market is staying pretty steady. Hopefully, they will pick up on lending out that cash cow! Too many waiting, and I want to see this board go nuts with offers! Good luck to you and everyone waiting!

[Twpchair]

I did at 69% a couple of weeks ago. In March it was 84% the previous one 91%. A small handful are getting them in the 60-70% right now, unfortunately. Hopefully, that changes soon. Good luck, and please keep us posted

[ls725]

1 month fully paid off and no loan offer in sight, sales are still steadily increasing daily. I just want to know whyyy.. lol

[Twpchair]

That's the million dollar question! Unfortunately, nobody has cracked that algorithm yet. There are a few on here 2-3 mths paid off and waiting. Hopefully, things will pick up soon, and loans will take off. Lately, it's been spurts of 3-4 people in a day or two with offers and slows down. Good luck. Please keep us posted it helps others, too

[Knight87]

Got an offer on Saturday at 84%, offer was 25% less than the last one, this is 12th loan, get one every 6 months, Last offer came ay 75 %, one before at 85%. On Monday they ask for additional information explaining reason for recent processing decrease, was on vacation so was closed for a week. Then on Tuesday they ask for more additional information,  screen shots for my bank statements and foto of business license. Once I uploded that deposit was almost instant in square account. Hope this helps