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.

[GlitzyCow]

I’ve never even seen a card option anywhere on my dashboard. 

[Twpchair]

I believe you only will if it is offered to you? I don't believe there's an option to apply. It's kinda pre-approval, and then it would pop up. I'm trying to get a straight answer and just waiting. Some are saying it fizzled out? I don't know for sure. At one time they talked about a line of credit instead of loans and everyone liked that and nope didn't happen. 

[brown17]

lled in to inquire today as I have been with square 7years now and never been offered.  i have also had many loans with them.   I did however just get a generic answer that accounts are reviewed daily blah blah blah.     Didn't get specifics n what qualifies you and what doesn't 

[PFS36]

The generic answer is all we're getting, too.

[Twpchair]

Unfortunately, with the card, it's being tested in the Beta group, and it is not available to everyone. It seems to be going good there, so hopefully, in the future, it will be available to all square users. I'm sure they will have qualifying meters and such. But it's better than spinning the wheel of the algorithm everyday!

[PFS36]

From what I've read,  it looks like they started this in 2022. That's a long time to be trying out a new option. 

[Twpchair]

I know, right? I just signed up for testing new log ins and easier ways to navigate the platform in the back. 😆 🤣 😂 It took me 20 minutes to get back into here! Day 2, not so hot, was my reply! The Beta group has been using them, and so far, as of late, no hiccups have been running pretty smoothly. So, hopefully, they will announce how it works. Do we apply, do you have a set limit, etc, I do know in that Beta group if you get a card you are not eligible or will get an offer for a loan. It will be interesting how that will work out for some. Something we think is so little affects others differently. Hopefully, things break loose soon. 

[Jjpainting]

Did you ever find out any info about this.  I never knew they even had credit cards until i read it in a post last month. I did a quick google search and from the one article I quickly glanced at, it was still like in its testing phase and only offered to a small group but that could have been an old article. A line of credit would be the better way to go. Wish they would do that in place of the loan with a set interest rate on just what you use.. They probably could give out higher limits, cause people would be inclined to only use what’s needed due to interest rate. 🤷‍♂️

[brown17]

Never knew they had a sqaure credit card. How do.you see if your eligible? 

[Paulynne]

From my understanding, it is something they have to offer you. And it seems to be offered to people who are making about $500,000 or more per year.

[locksmithnick]

I got mine in November and only ran $175k through Square that year. I also got my 20th Square Loan that same month. 

sitting at 77% paid now…and should hit over $200k in sales. 

[PFS36]

We're at 180k right now so I'm not sure. Most small restaurants do 1m and under. The big box restaurants use a different POS, so not sure what Square is up to.

[PFS36]

We got our first offer at 40k, and our second at 75k .

[Twpchair]

If you are eligible you will be notified. They tested it in the Beta group and seems to be moving along and hopefully soon they will announce how, who, what needs to be done if anything. It's just in the testing process and hopefully we will see soon!

[Twpchair]

He got very lucky, and in the early stage, it probably just snuck through. If you are eligible for a card, you are not eligible for loans. This is being tested in the Beta group for a small group of people. It seems to be going good, and no hiccups really. I had to read 4/5 different articles on it. Sounds great hopefully it works and offered to everyone and can replace the loans and the mystery algorithm! Going forward is a great thing but it doesn't come easy or without delays and bugs to fix.

[locksmithnick]

My Dad currently has a Square Card AND an active Square Loan offer in his account right now… 

[ohboi]

I’m in the restaurant industry. I’ve have plenty of loans with square all of which are  paid off usually within 3-4 months. 

[PFS36]

I am, too, so I wonder if it's something to do with the restructure and teaming up with US Foods?

[ohboi]

Maybe… but what’s funny is we have US Foods as our main food provider lol…

[PFS36]

And what else is crazy,  their stock was a top performer yesterday and they beat their projections a lot. Makes me wonder if restaurants are about to be their main objective.  Seems like not many restaurants are seeing an offer.

[itisnotjustpiza]

We are also waiting for an offer over a month paid off.  Pizza biz.  We are in a mall and they have let the air conditioning go.  It is having an impact on business.  Pretty confident they are looking to sell.  If anyone is interested in a mall. 😁