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]

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

[Twpchair]

Congratulations!!!! And yes, thank you so much it does help others waiting!

[PFS36]

So, we did more processing this week than the last month and we updated today at 4pm cst ..... big ol Needs work in red. We jumped to 92% today and had a great weekend so far. This makes absolutely no sense.  I think the algorithm is drunk and we're thinking about leaving Square.  All the people that are paid off and waiting is bad enough,  but to just throw a Needs work in our mix is really frustrating.  You reach out to these people and all you get is the same generic response.  

[Tyconcrete]

I feel you .asked them to escalate it never heard back called and same crap 💩 😒 from them it's bs .they are making a killing off us from the fee's and processing fess loan f ees .but oh well at least I will have less than 10k after tonight  🙃 😅  on a 77k loan so .I pay it off I won't need it from them 

[PFS36]

We have 14xx.xx left on a 15500.00 loan. I'm just trying to figure out how a great weekend of processing puts us in needs work. 

[Tyconcrete]

I stopped trying to figure it out .my 6th loan and never late never charge back always paid way earlier  them needed  and 86% all came in well below 80% but can't wait to finish paying g them off .and be done go to a small credit union. Be better off .and there's no customer service at all it's a joke we have to reach out to one a other  to get answers  .

[PFS36]

I wonder if anyone has gotten an offer with a Needs work in their metrics.

[Paulynne]

yes, someone a few pages back did. 

[PFS36]

Thank you 😊 I thought everyone had gotten loans and disappeared 🤣

[Twpchair]

No, I think their in mourning phase right now ughhhhh! I'm hoping with the Feds indicated they are not going to raise the interest rate again and the market holding steady lenders will start loosening up! Good luck and I've been watching and waiting for you to post I just got it!