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]

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!

[Twpchair]

I think people hold the metrics as a loan offer coming or guarantee, and it's not. It's a tool for us to use to see where we are, what we need to work on, etc. I am just north outside of Mt.Pleasant. you could spend a lifetime trying to figure out the algorithm, and just when you do, they can idle it up or down add in or take out certain metrics. I've just noticed my offers usually come after 2-3 days of extremely busy days and not so much my metrics.

[MayaP]

Hello @Twpchair,

I would contact support at 1-855-700-6000 and ask for the Square Capital. The team is available to speak on the phone Monday through Friday from 8 am - 5 pm PST. 

If you need anything else, let me know 🙂

[Twpchair]

Thank you! I didn't see any numbers for tech support directly for your dashboard. I'll let them know! Thanks again!

[Twpchair]

My best friend lives in South Lyons. I like to go down and go out for the weekend but I'm a country girl at heart. I was born and raised in West Branch area.

[Jjpainting]

oh cool.  Yeah I get a job once in a while in south Lyon. I grew up in Northville right next door to south Lyon and have a couple life long friends that live in south Lyon.  It’s a nice little city. 

And I kinda pass near west branch whenever I go up to traverse city to visit my aunt, uncle and cousin or the few times that I’ve gone to Mackinac Island.  I don’t think I’ve actually ever been in that area though.  

[Twpchair]

A nice used to be small/medium farming community, and now it's growing and more industrial parks than Mt.Pleasant I think? But get out of town, and the farmers have just expanded out. My brother lives in Traverse. He's a PA at Munson Mental Hospital. It's nice for a visit but so busy in the summer it's crazy! I'm glad business is going very well. That's awesome to hear from Michigan! Do you transfer and do inside jobs in the winter?

[bsa77]

I guess one good thing is that you don't have to play the rat race with square loans. Capital is the ONLY thing keeping me around. Right when I reached 90% and all green then they pulled the "needs work" in frequency and volume which makes no sense. I am above average in both. My business does not receive volume processing but larger ticket purchase which we are selective in our business it never has. If I reach 100% and no longer have ties to square bye bye square. What's the point when other processing companies offer lower rates and loans that you can count on rather than the algorithm that they mysteriously use. How do we even know that equal lending is applying here? 

[Koleen1234]

I completely agree with you. What is the point of staying around 

[Ulmen406]

My account hasn’t been updated since 9/2/24 is anyone else in the same boat?

[Twpchair]

No, problems here at all? That's a long time to go! Have you reached out to anyone? I know others have been noticing issues or delays, but not like yours. @MayaP what is the best way to do this? Call customer service and ask for tech support or email tech support directly? Thank you 😊