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.

[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! 

[jackiebee12]

we had a really busy lunch today after two ridiculously slow days and hit 98%. around 3pm i finally received a loan offer at a whopping $7150. my last loan was $22,900, but my sales are down about 14% and i’m about to change my hours to do breakfast and lunch only instead of lunch and dinner. 

i took the offer because anything helps right now! i will update if/when i get approved. 

[Twpchair]

I understand that especially changing up hours, anything helps. We have been seeing lower offers with a lot of businesses seeing more cash and checks vs. cards, too. Business is staying the same or increasing for some, but they are not using their cards. Most I here in retail is that way they stick to their budget better. Congratulations again, and definitely keep us posted. I know my offers tend to Saturday night, and nothing moves for me but accepted until Monday. I'm not sure how that works on a holiday. Maybe someone else can jump on who received an offer on a holiday weekend?

[jackiebee12]

i’ve never received an offer on a holiday weekend, but i have on saturdays. all of my approvals were accepted at different times. anywhere from 10 minutes to 3 days. still waiting on approval for this one 

[Twpchair]

I'm a Saturday person, and usually 7/9 pm an offer comes in. I don't move until Mon, but with that being a holiday, don't stress out. It's my norm. What I check is my loan circle. Usually, Sunday is full, and then when you go into previous loans, I can see my last loan there. So it's just waiting. Also, my money usually hits my credit union before my loan papers arrive.  That's been my experience every late Saturday offer. I looked, and I've never been or had a Sunday one? Thursday and Saturday are 95% of my offers? Good luck and keep us posted!

[Twpchair]

I'm in retail, and every Sunday morning, I go out for breakfast with my sons and their wives. I've noticed breakfast has gone up a bit, but not like dinner. Did that come into play or just more demand for breakfast 🤔 just curious how our food industry is doing with the increase in food. Containers for takeout just about every single thing has gone up. 

[jackiebee12]

we are in a small town (that is growing like crazy) with only two places to really eat breakfast - and i don’t eat at either! one of them doesn’t have a secure future - as in they could close within the month because their building sold to another owner. 

eggs alone have gone up and down this past year. even before i did breakfast, i use a lot of eggs for our chicken tenders. they are currently up in the last couple of months. sausage is up. 

foam cups for drinks are way more expensive than plastic. i’ve switched to plastic deli cups to sell my salsa in larger quantities 

i have had to raise my prices probably 3 times in the last year, but i’m very transparent with my customers and let them know which items are increasing and most have been very understanding. i offer smaller plates for those who can’t spend a lot or those who just have smaller appetites 

[Twpchair]

You did fine and posted right where you needed to! 

[Teecity71]

This practice of saying a loan is not guaranteed even after a person has completed all of the criteria set forth on the website is unfortunate. Business owners need predictability. We need to know if we complete the right steps that capital will be available.  To think there is an unknown moderator who decides when a business get a loan is scary. Where is the transparency? How do we know these loans are being giving out fairly. I think this is a bad business practice. We need to know every step it takes to guarantee a loan. We can't run our business thinking capital will be made available and after we complete the steps there is an unknown set of criteria. It's not fair, it's not transparent and it's frustrating to say the least.

[bsa77]

Absolutely!! Perfectly said. Also, something I have not thought about previously is how do we know loans are given fairly without Equal Lending Opportunity? 

[Twpchair]

They are all done by an algorithm not a human the only time a human touches it is they need more information about the the new loan offer. It's all lenders if you can post in the 2024 loan board you will see all the statements and what is going on. I wish you the best of luck!