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]

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%.

[Twpchair]

Congratulations again! Those big large deposits definitely trigger it. I'm happy to see your back on track with loans during your busy season! Here's hoping for the rest! 

[Thatgirl]

Is square the only place that offers loans based on payment processing other than PayPal? I am 98% paid off from what i am reading I would do better doing my wait elsewhere with a more predictable loan system, it's part of planning ahead, and a very integral part of growth in a business unlike personal loans for convenience. 

[Minion]

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@Thatgirl wrote:

Is square the only place that offers loans based on payment processing other than PayPal? I am 98% paid off from what i am reading I would do better doing my wait elsewhere with a more predictable loan system, it's part of planning ahead, and a very integral part of growth in a business unlike personal loans for convenience. 

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There are many places other than Square that offer these based off payment.  Each ones have their own set of guidelines and algorithm.  Some have weekly payments, monthly payments or % of sales similar to Square.  

Amex Blueprint (formerly Kabbage)- I believe is only a soft pull for current Amex customers, and i'm almost positive you can check to see if you qualify if you are a current Amex customer. 

QuickBooks Capital- Weekly payments based of sales. 

OnDeck - Weekly payments based of sales

Fundbox- Weekly payments

Each of these have their own set of guidelines.  I would encourage you to look at each along with any fees associated very carefully.  All of these, like Square Loans can change algorithm or offers based on a number of things.  Some of them even can change offers or reduce offers based off from your personal credit score.

If you are looking for full transparency, I  would strongly advise to look into business lines of credit (BOC) with your current banking institution.  In the long run this will most likely save you a headache of having to wait for funds while still building a personal relationship with your local bank. 

Edit: I believe I read an article a few weeks back that the SBA is supposed to also be coming out with some time of LOC or something similar I believe to SB owners.  Unsure of exact details on that though. 

[Twpchair]

Years ago, I went to my credit union and called about a line of credit. Do I need anything, etc, Nope, they had all my paperwork and licenses, and they can look right at my account. I only bank with them.  No kidding in about an hour boom done received a line of credit. Now, I do use that for emergency type situations. But I have it. I just myself like small credit unions vs. bigger banks, just my preference, but they seem to lend faster and more often to small businesses. They did offer a business credit card, and I turned that down over the LOC. I'm old school and I do like Square. I've never been with anyone else, though, to compare. But I swipe that card and 5:05 pm it's in my bank. Loans love them, too. I don't take every offer more so the winter times, or if a deal comes along that I just can't pass up on and an offer came in, I would take it. I'm also one that likes the higher percentage paid back. If I want that loan, I want the most of it and not roll over 30 or 40% of an old loan eating into my new offer. But that's just me. Everyone and their situation is different. I see people with broken equipment or business repairs that need to be done ASAP. That's much different, and I feel for them, and each day I watch hoping they get that offer!

[Minion]

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@Twpchair wrote:

Years ago, I went to my credit union and called about a line of credit. Do I need anything, etc, Nope, they had all my paperwork and licenses, and they can look right at my account. I only bank with them.  No kidding in about an hour boom done received a line of credit. Now, I do use that for emergency type situations. But I have it. I just myself like small credit unions vs. bigger banks, just my preference, but they seem to lend faster and more often to small businesses. They did offer a business credit card, and I turned that down over the LOC. I'm old school and I do like Square. I've never been with anyone else, though, to compare. But I swipe that card and 5:05 pm it's in my bank. Loans love them, too. I don't take every offer more so the winter times, or if a deal comes along that I just can't pass up on and an offer came in, I would take it. I'm also one that likes the higher percentage paid back. If I want that loan, I want the most of it and not roll over 30 or 40% of an old loan eating into my new offer. But that's just me. Everyone and their situation is different. I see people with broken equipment or business repairs that need to be done ASAP. That's much different, and I feel for them, and each day I watch hoping they get that offer!

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I agree everyone's circumstances are different and things come up randomly.  The biggest thing is like you said, if possible, to pay that thing down to 10% or less is ideal for sure if you can.  Just makes the most sense to me as well.  A 15k loan doesn't mean anything if you are losing 4-5k of that to pay off the previous one. 

[PFS36]

So, we opened our new location this Wednesday and we were at 92% ... we jumped to 99% at noon today.  This move was a great move. Still praying for y'all that's waiting.  We're still waiting,  too.