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.

[jackiebee12]

I am at 96% paid off on my 8th loan and have $1200 left of $29,200. I am now working with a local bank. I really can't keep waiting. I have repairs that need to be done and really in need of some working capital for some equipment. 

I have a restaurant so I don't think I have a ton of options if I were to change processors. I tried clover already and was not a fan. Toast left a terrible taste in my mouth and I wrote them a long QC email. My old college roomate now works for Toast and said all of operations totally failed me on my account. I have a Chase card reader as a back up for when we do festivals but I don't know if it's worth using them full time. 

[Twpchair]

Good luck with both Square and your local bank. No matter what, I did the same a few years back and got a line of credit from my credit union. That's my emergency only, and it sounds like you need equipment to keep going. I'm not telling you what or who to use for your business, but I've been jumping on other pos sites and reviews, even reddit, and it's all of them saying the exact same thing. Lending in general has tightened up. A few good things happened that will hopefully open things up. The Feds are hinting that they aren't going to raise rates. The market has mellowed out and maintained. All lenders want to hear that. Hopefully, they start to push out some loans! Good luck to you with both! I hope you get everything fixed and back at it full force!

[Twpchair]

I use my small local credit union to. A few years back, I got a line of credit, and I use it for emergencies only. They are so easy to work with. But I stay with Square. It's the easiest pos for me and my employees. Everything links great with my spreadsheets. The loans are a plus, and unfortunately,  it's not just square. All pos lenders are holding tight. But it is looking better with the Feds not raising rates. The market is staying steady. Hopefully,  things will pick up and loans going out quickly. Good luck to you on both with the credit union and square.

[Jjpainting]

How were your sales prior to the weekend?  Not sure if this helps at all, but my processing volume/frequency jumps back and forth at least a couple times a month from good to needs work and then back to good. For me it’s mainly cause being a painter, I only average around 15 card payments a month, so I only need a couple of my customers to choose to not pay by card to make this happen. Then once it goes to needs work, I’ll only need one large transaction and I’ll know I’ll be green again, but it takes a day or two for it to go back to green. All I’m saying is that you just may need to wait till today for it to turn back to “good”

[PFS36]

Good morning! Our sales were great last weekend, too. Although this month has been a majority of cash, I'm at 8500 on cards. I think the system is flawed because we're only open Thursday through Saturday and it has me processing cards on Wednesday and Sunday.  I don't know what's going on with it.

[Twpchair]

Right now, I'm ok with metrics, but in the winter close 2 days, and I noticed after the 1st day closed that I was about 1 day behind on my metrics as well. I was one who received an offer with metrics, not all green. Daily card volume was red, and I still received it. I believe after a bit of no cards Mon and Tues on a regular basis it must pick that off. I saw last week 1 got an offer and a response why the drop in sales for 2 days. They said they are closed those days and funds available in 15 minutes they said

[PFS36]

Although an offer would help cushion our new opening,  I guess we're just going to chip away at it out of pocket. We're waiting on our Health Inspection and ready to open.  If Square would just reads these posts, they could understand their customer base a little better. 

[Twpchair]

I see others post the same thing 🤔 is it just the same thing over and over that says need works? I haven't seen anything in the back that said working on metrics and fixed type thing? The best luck most people say is at the very bottom when you scroll down it has that smile face or frown and say, "Did this help you? And they hit the frown and you can leave a comment and just about all of them said some called them in 1-2 days and asked what was problem and told them all my metrics are way off according to my sales. The next day, all back to green. It's worth a shot. 

[PFS36]

I've sent in a few happy and frowns but no change.  Makes me feel like customers aren't really appreciated,  ya know. 

[Tyconcrete]

Oh they don't care one bit if they did as big as square is .you think they would have a department setup for this .to  manually do a review on it long time customers. 

[PFS36]

Welcome to corporate America.  It would just be nice to hear from a real person when you reach out to them. I guess I can't be upset at Square,  I chose their service and I have to be thankful for the other loan. 

[Tyconcrete]

Yes but same time if we weren't all of us customers to them there would be no square. I just feel they take there customers for granted sometimes. 

[Twpchair]

I do! That's the exact reason I switched from a big bank to my local credit union! I go in the "say hello" using my name, not what's your account number, and I need DL and account number. I can call my credit union and at the car dealership and tell them what is going on and boom, no problem, call when you find it, and we got the rest ready to go. You build a relationship over years and I get it Square deals worldwide and millions of customers but if you call and they see you been with them for say 10-12 years at least give you the curiosity to be upfront as much as they can and not read from the script or if they have to then let you know hey it's not you or your business but we have others to answer to or right now for about a month we are being very careful with or how much is going out right now. Perfect were all adults and just want to be informed is all. Then you, as the business owner, know I better hunker down or look at my bank for a line of credit or business credit card. Transparency is huge for me. I know, and you know there is no guarantee, but that's a loop hole, imo and I hate to see customers leaving when I watch and read other platforms, and they are stating the same thing or worse. The Rep at some of the other pos promise you the world immediately, and that's not true at all! Read their terms. You start fresh 6mths-1yr for your first 1k offer. They don't care you have been with Square for 10 years and getting 50k loans or whatever you are new and will have to establish a relationship with them from day 1.

[ClubJovonnes]

Finally got an offer at 92%. Offer is 1/3 of my previous loan with the same processing $ amount but fewer individual sales. Gonna let it sit for a few weeks and see if it improves.

[Twpchair]

Let us know how that works out if you don't mind. Others have been debating the same thing, and I have yet to see any come back and let us know if it went higher or lower than the first offer. Good luck to you.

[studio219ink]

Just got an offer last night. I manually paid off my last loan 2 weeks ago. Offer is less than half of the last one but, if I take any of it, I'll likely take only half of what's been offered.

[Twpchair]

Congratulations! Unfortunately, we haven't seen too many with double the previous loan amount. Most have been around the same or less, im just happy to see it moving! Thank you for keeping us posted.

[taraj2004]

Congrats to everyone with offers! 

I'm seeing some of these larger ooffers I'm sitting here I'd be happy with 5,000-9000 which is what mine have all been in the past! I'm at 82% paid here's hoping g 

[Tyconcrete]

I'm at 86% should be at 87 tonight less than 10,000 left on a $78,000 loan no offers in sight and no we would get one before 80% so it is what it is at least I'll be done paying it off

[Paulynne]

So my account has been sitting with “Needs Work” for a couple of weeks now. I had a week of crazy sales and invoices paid about 4 weeks ago, and it threw my average weekly sales above normal. Now my account shows that I need work for my sales volume. But every week or month won’t be like that ONE week, it was very rare. I usually get a loan at 70%-73% paid and I’m sitting at 78%. 

[PFS36]

Mine goes to needs work every Wednesday.  It went to needs work on Saturday for some reason,  but changed back to green,  today.  I'm at 92% and still nothing (restaurant) . The Square loans people probably complain about how much a burger is, now 🙄