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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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]

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?

[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. 🙏

[Twpchair]

Ughhhhh, I am so sorry I look every day for you 😢 finally a few that have been paid off are getting offers. I hope you are next!

[Twpchair]

Congratulations! I'm sorry it's lower, but hopefully, it will help! I'm glad to see some who have been paid off getting offers! Let's keep this rolling!

[indiaink]

is there a method to the madness on when you will be offered another loan?

[Donnie-M]

@indiaink I finally found the algorithm posted somewhere deep deep in a reddit article.

Square Loan Offer Algorithm:

1. Initialize Offer = Yes.

   • Set "Offer Status = Pending Soon."

2. Check Seller’s Sales Volume.

   • If Sales Volume < Threshold, proceed to Step 3.
   • If Sales Volume ≥ Threshold, proceed to Step 4.

3. If Sales Volume < Threshold:

   • Set "Offer = Maybe."
   • Display message: "Keep up the great work! We’ll review again soon."
   • Redirect to Step 5.

4. If Sales Volume ≥ Threshold:

   • Set "Offer = Likely Soon."
   • Go to Step 6.

5. Evaluate Account for Inactivity:

   • If Inactivity > 7 days, set "Offer = No."
   • Display: "Consider boosting your sales efforts."
   • Return to Step 2.

6. Analyze Account Consistency:

   • If Inconsistencies Found, set "Offer = Re-evaluate."
   • Loop back to Step 3.
   • If Consistent, proceed to Step 7.

7. Request Additional Documentation:

   • Wait for Seller Response.
   • If No Response within 48 hours, go to Step 8.
   • If Response Received, return to Step 4.

8. Reassess Loan Parameters:

   • Randomly adjust Threshold criteria.
   • Recompute Sales Volume by the factor of the Airspeed Velocity of an Unladen Swallow  
   • Loop back to Step 2.

9. Final Decision:

   • If "Offer = Yes," display "You’re eligible for a loan! Details coming soon."
   • If "Offer = No," display "Keep up the good work. We’ll review your account again soon."
   • If "Offer = Maybe," repeat from Step 1 for confirmation.

10. Completion:

    • If Offer Status = Pending, return to Step 1.
    • Otherwise, close the process and notify the seller: "We’re still evaluating, please stay tuned, more detail soon!"

Key Terms:

Definition "Soon": Block, Inc. All rights reserved. "Soon" does not imply any particular date, time, decade, century, or millennia in the past, present, and certainly not the future. "Soon" shall make no contract or warranty between Square & Block, Inc. and the end user. "Soon" will arrive some day, Square does guarantee that "soon" will be here before the end of time. Maybe. Do not make plans based on "soon" as Square will not be liable for any misuse, use, or even casual glancing at "soon."

Now<---------Pesso Very Soon---------Soonerino---------Very Soon---------Soon---------Very Soon-ish---------Soon-ish---------Soonish...er--------->End of Time

I hope this helps and is the most accurate answer I can give.

TL:DR:  They continually evaluate accounts on an ongoing basis.

[indiaink]

😂😂😂

[TheRealChipA]

OMG @Donnie-M. After reading that, I’m worried you violated your NDA. 😉😝

[Twpchair]

Here, I am looking around my past offers vs. sales, and I am like, hmm, either onto something or he nailed my last 3/4 offers. Especially the last one at 69%??? A few weeks back. I don't look daily except my metrics and then my bank. I'm not sure why I've only had 1 deposit in a decade that didn't go in at night, and that was on my banks part. They were down for maintenance. 

[Healthyketo]

Nope you’re pretty much in a waiting pool hoping to be chosen. Lol been paid off since June 28th and still waiting on an offer 😒 all metrics on good standing and nothing. A lot of others are also in the same boat as me. 

[Twpchair]

Ughhhhh, you are one I look for everyday hoping to see that offer come in for you! Come on Square loans 😫 and drop an offer tonight! 

[Healthyketo]

🙏🙏🙏praying everyday! 

[Twpchair]

Hello, here I am checking on you! If you don't get an offer soon, I'm going to start calling Square, too! 😆 😂 😅 ughhhhh,  it's not funny 😐 I know it's getting crazy! I'm pulling for you, and half this thread is!!! It just blows my mind, really. I'll be looking later and hopefully shake loose tonight! Good luck, and I hope your offer comes through and it's a good amount for all your waiting!!!

[Healthyketo]

Good morning! Unfortunately I’m still waiting! 😒 I want nothing more to come to this thread and say “I FINALLY GOT AN OFFER!!” But nope nothing yet. 😭 been paid off since June 28th called square several times. They even seem to be rooting for me with “I hope you get an offer soon we’re really sorry about this and we understand your frustration”  lol 🙏 maybe one day I’ll get one lol

[Twpchair]

Unfortunately, not that anyone has been able to figure out. There are many who have tried. In just my experience only and it could be just a coincidence. I've noticed myself after a really busy 3 days or 3 day sales I do and a lot of processing and higher dollar amounts (retail furniture) depending on my percentage paid back 75% or higher now. It seems to kick in an offer late Saturday? It is a coincidence, I don't know? But my last 3 all came after big ticket sales and 3/4 times the processing. My percentages were 91%, 84, and the last 69%!!!! That one kinda threw me off. Because it's been trending, a higher percentage paid back or completely paid off ( not all) but for at least 70-75 %. We are all different. How we process is different and frequency. So if my processing increases and the dollar amount increases and everything is doubled, is that triggering something? I don't know, honestly. If I did, I would certainly be screaming from the rooftops!  That's why we are here to help each other and keep each other posted when an offer comes in and all the information you care to share. Good luck to you and everyone waiting

[JMIL2024]

I just received an offer of $10,750. I was 70% paid off on an 8K loan from late June. It is our 5th loan in 9 months. We typically bring in 20-25K a month. My last loan was not offered until it was entirely paid off for a week. So, who knows how it works.

Hoping you guys get some offers as well! 

[photoguy2019]

Congratulations!!🎉🎉🎉 i am so happy to hear this!! I have a 8K loan that i am on 64% with now 😊 i have got them in the past at 70%,60%,62%, and last one at 65%.