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]

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.

[Malamaark]

Good to see many more people getting an offer come through, unfortuanty two months at 100% paid off and still nothing here ! hoping for a miracle at this point 😂 

[Twpchair]

I know I would love to see this board full of offers! Too many completely paid off and waiting. Good luck to you and everyone waiting! Please keep us posted if you don't mind? 

[ApexSupply]

If Im unable to recall, where can I see the % I was at when I received my last square loan? Did math to get a rough estimate but not sure of the easiest way to tell. Currently at 72% and pretty sure last one was at 68? Hoping its comes soon and even though my last was my largest yet I hope its a little more this time as the additional boost has really helped increase my sales. 

[Twpchair]

Honestly, the best I can figure is doing exactly that. Before, I could always count on one 70-75%. Now it's been 91, 84, 81, and 69. I did a square folder on my phone, the date, the percentage paid off, and if I accepted it. It's easier for me and fast. Before, I did what we did, and I think it was within a point or two. Unfortunately,  that's all I know as well.

[ApexSupply]

It’s definitely frustrating. 73% today. I feel like it’s coming 😂. 

[Twpchair]

For months, it's been trending higher percentage paid off or completely paid off, and now out of blue, I'm seeing 1 o 2 at like myself 69% 65% and then 96%?? We still have some 3 mths or longer completely paid off, and everything is up and processing like crazy? I have an LOC at my credit union, and I know they are offering lending, credit cards, and LOC. About everyday they are offering something. This started about a month ago or so? Hopefully,  that's a good sign. Good luck to you and everyone waiting!

[Jjpainting]

I have been thinking about switching to a credit union for a business checking account. I only really use my square and my personal chase account. It was only until recently that I discovered that my square checking is considered a personal account and not a business account. I found this out when I tried getting a business loan. I was preapproved on the few I tried (based off of my business income) but then when they asked for my last 3-6 months of business checking statements, and I sent them my square statements, everyone said they couldn’t accept them cause it’s not a business account. Square advertises kinda like it is a business account instead of personal. How long were you at your credit union before they offered you a LOC?  And do you have any suggestions on a good credit union in Michigan?

[BeeBraids]

Hi Did u ever get a new offer ? And if so what percentage were u at? I just hit 70% this is my 2nd loan, my first one was completely paid for exactly one week before I got another offer, but I was reading about other merchants getting offers much sooner than full repayment. 

[BWcreamery]

Finally got an offer!!

Have been paid off on my last loan of $9350 for about 6 weeks now. 
Today (Sunday) I got an offer just before 6PM for less than half of my last offer (3700 this time) and approved and in my account within 8 minutes. 

Thankful but still praying for yall! 

[Healthyketo]

Congrats! Great to hear some activity today. Hopefully more will be rolling out this week. 🙏