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.

[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 

[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!

[Twpchair]

Good morning! I know it's frustrating, and if you see a thread loan 2024, there is more information about what is going on. They use an algorithm that determines loans, not people or individuals.  It has nothing to do with who you are or what line of business in your in it lenders on the whole right now that are holding steady with giving out a lot of loans.  Waiting for the Feds to see if they are raising rates,  the market to settle down, the economy the list goes on unfortunately. It's been since at least June. Please don't take it personally and it goes into further details in the 2024 loan board or thread. Good luck to you and everyone waiting. 

[Teecity71]

Why isn't there a page that explain what you're saying. There are business owners busting their butts to pay their loans off early just so they can get more funding. Square list the criteria and now they have added hidden criteria. Now your telling me that interest rates, and the stock market has been added to the criteria by which small businesses gets funding. I really believe Square is making a huge mistake. I have been happy with Square but now I'm looking for a payment processing company I can use that has straight fourth, predictable and transparent criteria by which they give loans. Just blaming my situation on an algorithm is weak because humans are the people that set the parameters of the algorithm and study after study shows that algorithms or even more bias and discriminative than humans. How often is the algorithm tweaked to get different outcomes? I'm a very small fish with Square. They don't need my business and therefore I feel under served. I guess I'm just going to try Clover. I was with PayPal for years and after I found Square I left them. I bragged on PayPal for years until they got too big, I have bragged on Square for years.  I DO NOT WANT leave or start limiting my transactions with Square.  I was expecting a new loan based on the criteria they set forth and I feel like they have snatched the rug completely from under my family and I. The unpredictable nature, no transparency and lack of an explanation other than saying THE ALGORITHM DID IT is a cop-out. 

[Twpchair]

Right up above, I believe all the posts or the mods comments at the very end it has all the factors to loans. Hun, I don't work for Square. I'm a customer just like you, and I noticed it maybe 6-8 mths ago myself. That the wording had changed or added information to it. That's when I started to really pay attention to other pos services that offered loans and reddit. And it's not just square but what's going on right now in the world and square is worldwide and the economy isn't great, the market crashes and bouncing back, the Feds hints not raising rates it's crazy. Do I wish all businesses would release a statement hey its tight, but hold on, it will get better, but unfortunately, I haven't seen any pos do that. All I can tell you hun I understand the frustration, I understand being used to something for 10 plus years and boom changes, I get it all I really do. All I can say is that, like many others, we don't have hidden secrets, but we do watch the trends going on, and this is where we are. I'm watching people paid off 2/3 months all green and nothing, and 20 minutes later, here comes one at 82% and an offer? Why, how I'm not that computer smart to even go down the algorithm hole. But we are here now, and hopefully, it will loosen up soon. Honestly,  good luck to you and your business I really mean that. It's hard enough for us small businesses. 

[Twpchair]

Shoot hun, I just saw your on the 2023 loan page not the 2024 loan thread that is why you are not seeing the latest information from Square. I just got your comment and looked up and its the 2023. If you can is there a way you can back out and look for the updated 2024 from people commenting today? If not I don't know how to add you? Not computer friendly I can tag @Violet can you please 🙏 merge her to the 2024 loan section? Thank you!

[Twpchair]

 when you scroll down to the market part that's what I was talking about but I saw you posted in the 2023 loan page and didn't see this part that was updated I believe the first of the year. It could have been a few months before that? That's when I noticed it was last January, at least for myself. 

[Twpchair]

I think it's too big, but here if you scroll up to the top, that's been the updated list. I apologize again I didn't see until later you posted in the 2023 loan section. Good luck honestly and hopefully it will loosen up soon and get back to normal! 

[photoguy2019]

Hello good afternoon, im not sure how to post to the thread so i thought i would reply to you :). I know this isn’t any loan news but i thought id share.. My Square app and dashboard updated to a new look. Not sure if anyone noticed that.

[Jjpainting]

Yes I did notice a few minor changes.  On the app on the balance page it also now states under the loan “you’re on track”. 

[Tyconcrete]

Welcome to square  capital  lol it's a joke .maybe if all or 3/4 or even half of us would sing a letter or something get going and make corporate 🤔. And we all find a other pos company  they will change unfortunately  I don't see it happening  .any time soon  or there policy changing 

[PFS36]

10:41pm CST and dashboard still hasn't updated.  

[Twpchair]

Hmm, mine was 30 minutes off yesterday 🤔 on a holiday weekend? I'm not sure if anyone has responded, but I reached out to see if they are working, updating anything going on with metrics? But if 75% are OK and 25% isn't working right or some not at all. That doesn't sound like an overhaul of work being done imo. I'm up north and barely have a bar. I'm not sure if I received a message back. Hopefully,  yours will kick in.