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 

[Twpchair]

I'm sorry I responded, but I don't see it? Loans these last 2 weeks or so are bouncing around! This summer, it's been trending higher percentage paid back or completely paid off, and now you're seeing a couple each week in the upper 60s or low 70s??? About 3 weeks ago, I was 69% paid off and checked my metrics, and boom, there's an offer?? So, I'm not going to say it's swinging like 4/5 yrs ago when I hit 70-75%. I could 99% guarantee an offer was coming in, and I was growing, and business was booming. Do you process cards daily and check your account and metrics? That's where I see it the last 3 or 4 because I used to get an email alert, and I haven't? I checked my account usually every night, and there it was. Good luck, and hopefully, we are getting over a hump and lenders holding tight. 

[GlitzyCow]

Square is lending. I have had a good couple of months with processing and I got an offer sometime within the last couple of days bc I wasn’t expecting a loan to pop up but it did and it was 3x more than the previous and it came much earlier than expected. Thank you square. I accepted it this morning and they asked me for my EIN number for the business and once I submitted I had acceptance in 2 hours. I am so relieved. This is huge for us to have a cushion. Insight- we process over 500k a year. I hate banks so I thoroughly enjoy square when it’s working with us. I had a tough last year with square.

I think the reason I got offered a loan so quickly is because I paid the first 120 days in payments in just half the time. They recalculated a more appropriate amount. This is a vast change from years prior. Good luck everyone. 

[Twpchair]

Congratulations ❤️ 🎊 I am so happy to see you back on track! You've had a rough ride, but it seems to have you back on the loan train

[Jjpainting]

Congratulations!  Yeah I think I remember you saying you got a loan offer a couple months ago and it was extremely low, which is what happened to me.  What was your repayment like cause that’s what I’m hoping will happen to me (last loan was about 40% of the one prior and about 4.5% of my yearly processing amount only). My first loan payment isn’t due for another 10 days. Ive already paid over 6X the first payment, or over 180 days of payments in under 60 days of processing.  Actually I was at this mark in 6 weeks.  Most of my customers have paid by cash/zelle this past 1-2 weeks. 

[lisap1970]

Do you have your personal bank account connected to square? I’m at 83% and stil no offer . 

[Jjpainting]

I’m debating if I should attach mine again.  When it was first offered to be able to do that I did attach it. Than a few weeks prior to my last offer I took it off. Then right after my last offer, the notification came back for me to attach it. I would love others feedback on doing this, if it helps with anything at all. I 

[lisap1970]

Well I connected it to see if maybe it would generate a loan offer. I’ve usually had one by now. I’m at 83% and I always got an offer at 70-75%.  Maybe it will help 

[ApexSupply]

Finally received an offer. Was at 74% and haven’t processed in a couple of days so was surprised as I was thinking that my last few were triggered by runs of processing. I saw it update the last few days with nothing happening and then today wasn’t expecting it and there it was. Just getting over Covid too so will be a nice start to the week getting some new product lines hopefully and continuing to build business. Good luck to everyone. 

[photoguy2019]

This is amazing! Congratulations!!! I am so happy to see that they are still actively lending. I must ask because i am unsure of the process square does… For when the dashboard updates does that tell you if you will receive one that day or it isn’t the deciding factor for the offer to post?

[ApexSupply]

I had 2 or 3 days with no processing. Those same 2 or 3 days where I watched it update everyday with no offer. Then on the 3rd or 4th day I got an email. So now I’m thinking contrary to what I believed before that it is not after a flurry of processing and also is not in relation to the daily update following processing. It actually made the criteria even more mysterious. All my sales are up. Maybe there’s a time factor involved. I usually get them around 4 months after the last with 70-80% paid. I really have no idea. 

[Twpchair]

When you update, no, the metrics don't tell you that you are eligible. It's a tool for us to use. If you need to increase your card processing volume, a mix between new and returning customers. That way, you know what to work on. Like they just said, I've seen many lately that needed work but still receiving offers. Maybe one of the others will jump in, but I believe that's exactly what it is a tool and not the deciding factor. You could have been up and killer numbers and then boom if you get sick or off for a couple of days I believe that it's your overall health of the business whether that's monthly or quarterly they take into their decisions I'm not 100% sure. But the metrics aren't the only deciding factor. 

[Twpchair]

Congratulations!!! I hope you are feeling better now! Knock on wood. I never had it. Good luck and go kick some butt!

[Twpchair]

How many are on here now waiting and completely paid off? If you don't mind sharing, how are your metrics? @Healthyketo got ya, unfortunately 😕 thank you!

[PFS36]

We're 3 days paid off and almost 500% up in sales. No offer. All green. 

[Twpchair]

Ughhhhh,  I knew you were really close! Thank you! And good luck! I think before I told you with those numbers I don't get it?

[PFS36]

Thank you 😊! Yeah, Square is very peculiar. 

[Twpchair]

Peculiar or Bipolar I'm not sure which yet? 😆 😂 😅 no, unfortunately, we got so used to years ago myself that I could about 75% guarantee between 70-75%. I would have an offer and always bigger as I grow at a fast rate. And then Covid and lock downs. I'm from Michigan, and we were one of the very last to open up!  I won't go into the extremely crazy "rules" we had, but it threw a wrench in small businesses bad. Many didn't make it, and most are just starting to kick it in again. You add in the economy, the market, and an election, and personally, I can see why lenders are holding tight right now. The Feds are holding tight. The market has been staying pretty normal for the last 2 years anyhow. I have seen more loans going out the last 2 weeks than all of last month. At least for the ones that post on here.

[Jjpainting]

In response to one message you wrote about metrics and so forth…did you see the post from the person who got a loan offer after a few days of zero processing?   Just goes to show you that no one knows how the algorithm works lol. I got all but one of mine after I had a huge increase in sales over the prior 3-5 days. The last one, I just had average sales that week but was 92 or 93% paid off. 

which city in Michigan you out of?  I’m near the walled lake/novi area

[ApexSupply]

Think I’m all better from the Covid never had it before the first couple days were rough. 

also there’s a possibility that the metrics DO matter but there’s a delay from when you’ve met the criteria and the loan offer gets sent. If that’s the case we would have to be able to look back say 30 days ago to see what was happening or whatever time frame. And that means we’re trying to base it off short term Ike the ast weeks activity when it’s already possibly been decided?

[Twpchair]

Could be? If my busiest days are Thursday-Saturday and then Monday and Wednesday. That's my normal thing. Tues is the slowest day of the week for me. My offers tend to be on Saturday and Thursday. I've had a few here or there on a Friday or something, but when I went back, my paperwork at least and dates are Saturday and then Thursday. If I am pretty consistent, then who's to say that wasn't last week's stats? Thanks, now something else to think about or dig into. 😆 🤣 😂. No, I gave up guessing that! I've got a better chance of hitting the lottery 2xs!

[Twpchair]

I'm glad you are feeling better, too!