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 

[brown17]

Thats what happen to me yesterday and i got an offer...

[PFS36]

What happened? Loan disappeared or didn't update til later?

[brown17]

I updated as usual.then loan dissapeared .  I have noticed my loan screen not updating since and no payments being taken out of my sales.    Wondering if there are some issues going on 

[Twpchair]

No, mine does the same on weekends. My circle either disappeared or full, and Saturday night and Sunday, no money came in. But in my loan section, my previous loan was paid off. So I knew everything was OK and approved, but late Saturday and Sunday, I've never had a deposit till Monday it was in my credit union, and then I got all my papers. But look at your previous loans, and if this one is paid off and you're not getting 12% or whatever your percentage is, that's normal for me too until Monday night. A few tricks I learned from others to know your approval without "formally" approved on the weekends. My Thursday loans are boom and done. Not the weekend 😕 though. 

[Twpchair]

Ughhhhh,  I don't want to get any hopes up, but can I say  @brown17 ditto. There's been missing info for about a week now, but I haven't seen or heard of any updates or are they  working on it 🤔 my last approval Saturday my loan part was gone on Sunday it came back full circle and zero paid. So even though I wasn't officially approved and no money, I knew it was, and not much happens late Saturday or Sunday. Monday morning, the money was in my credit union, and then the paperwork came flying in. I did accept that Saturday to make that clear, just the paperwork and normal 15 approval didn't come till Monday, but I knew when my previous loan by then 94% paid off was gone. The loan offer at 69% I did not take. It's our busy time until Christmas, and I hate to lose 31% of the new offer to pay back the last one. If I need it, I myself like to be in the 90s so I get more of my new loan. I have a revolving line of credit at my credit union I use for emergencies only. I hope this is your case. Keep watching your loan circle and see if it comes back and normal or if it goes to fully filled in? You can also check your previous loans and see when the last one was? Good luck I'm pulling for you!

[brown17]

Oddly my loan was approved a deposited within 5 min but the circle is stuck on your money is on the way....

[Twpchair]

I'm a Saturday loan person and first look at your bank, but from what I was told, ach deposit didn't go through on the weekends.  My last one was a Saturday everything done, and Monday morning, it was in my credit union, and on Monday afternoon, all my paperwork from Square came through. With Monday being a holiday, I would assume it would be Tuesday.  Again,  that's just my experience with Saturday loan offers. I've looked back, and I tend to get offers Thursday and Saturday for the last 10 yrs? Maybe someone else who gets Saturday or Sunday offers has something else to add. 

[PFS36]

2pm cst and still haven't updated on Loan Dashboard.  

Anyone else had this issue?

[Tyconcrete]

Mine always update at different times  never same anywhere between 1 to 6 pm so not too sure. I hope you get something. Have a wonderful weekend 

[Twpchair]

I'm sorry, I'm up north and have horrible service! Yes, multiple people are posting daily. Either the metrics are missing or the loan section isn't there or didn't add in their last couple of deposits. I mentioned something in the back, so hopefully, they can look into it? So far, knock on wood mine has been ok. I usually update 1-3 pm a few times it was 4 pm but was accurate.

[PFS36]

It finally updated,  but no loan. I'm at 93% but volume is at needs work.  No offer.  We're opening our new location this Wednesday,  God willing.  The loan will be paid off in a day or two.

[PFS36]

They need to go on and give you a triple sized loan just for the waiting.  We're praying for you 🙏 

[Twpchair]

Hmm, multiple people are saying the same thing? I'm wondering if they are working on it? I looked at the board of items getting fixed or updating, and I didn't see anything about it? Not unless someone didn't report it or it's a new issue 🤷 

[PFS36]

7:58a cst and still no update since the 29th at 4p. Wonder if they kicked me out of the Update Club? Lol

[Twpchair]

Yeah,  that's not normal to go that long without updating I wouldn't think? @Minion have you heard of anything going on with metrics or loan section getting updates?

[PFS36]

It took 2 days to update. That's why I don't trust the metrics.  There's definitely a glitch in the algorithm.  

[Twpchair]

I know customers service is hard to get through the script response but if you tell them I am NOT asking about a loan I NEED tech support please 🙏 I don't know if it would work or they can look and trouble shoot it? The only way I have luck with customers support is kinda stopping them so very nice and calm and tell them hun I am sorry but I don't need your help I need tech support please it's very important. I think one, they are happy you aren't asking about a loan but need to just be transferred they are usually more than happy to get you there fast. Yours would drive me nuts, honestly. I watch mine, and I want to know what % of new customers came in during the weekdays vs. regular. Were they using cards or cash? How can you days behind or not at all. That's a tool to help us and it isn't helping you and it should.  Good luck! 

[Minion]

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@Twpchair wrote:

Yeah,  that's not normal to go that long without updating I wouldn't think? @Minion have you heard of anything going on with metrics or loan section getting updates?

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Sorry @Twpchair   I am slacking on the boards here.  Between business and trying to get my moms new home finished up Its been hectic. 

I haven't heard of anything with the Square loans being worked on updated at all. But I'm also a person though that never cared to check for it.  I always felt superstitious about that in a sense.  Like the more I check it, the more I would have to wait for an offer. Tt was always nice just to log in one day and see the notification.  

[Twpchair]

Thank you,  I wasn't sure who was doing the tech support stuff or updated on it? I have not seen I report or anything in the back in about it. Good luck, especially with moving your mom and housework! I've there 2 years ago! I'm done moving 😆 🤣 😂 

[Twpchair]

Hopefully,  it's good news! Fingers crossed 🤞 here for you!

[Twpchair]

Ughhhhh,  I know what you mean a few weeks back I received one at 69% and waited weeks before saying anything because others had been paid off and I felt bad so I kept it to myself until someone else posted 70% and then I said something! There is no reason why or how the algorithm picks it up. All I did was a 3 day sale and processed like crazy! I updated 1-3 pm normally, and boom, about 7 pm offer comes in 2x the last, which was 1k higher than the last. All factors were good, but the loan part wasn't paid. I am so happy to hear this, and congratulations!!!! I am doing a happy dance! Let's keep this going all day every day!