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 

[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.

[BiancaAlexandra]

Just wanted to give my feedback!

Ive been using Square for a couple years now, to run my Bridal Hair & Makeup Business. Ive had a couple loans from them and have been affected by the late loan offers too! I usually get an offer around 70% but today I got an offer at 93%. My last loan was for $3640 and the new offer is for $1430. Super bummed. Debating accepting loan or just finish paying off the loan balance. I waited for this offer for so long and now that I have it im not sure I know what to do with it.

[Koleen1234]

How much do you usually process with square 

[BiancaAlexandra]

My net total last year was $53.3k. On track to pass that this year. 

[Twpchair]

That's what they want to see is growth, a stable healthy business, a good mixture of new and returning customers. You can do this and get those offers up and back on track!

[PFS36]

Howdy! Good news... The new location first week boosted our sales at 495% over old location.  Paid off remaining $1400 of our loan in 3 days,  I believe. Hopefully it will trigger something,  but if not, we can keep on waiting. It's just nice to have it there in case we need it.

[Twpchair]

Nice! I'm so glad and excited for you! I know when I moved and roughly 1k square ft to 12k sq ft. I thought my husband was going to have a stroke. I told him you don't know if you don't try it. We outgrown the old building in a year, and it was the best move I've ever made! What an amazing start! I love it! I'm a huge shop, small and local.. keep rocking it! Im so happy for you! 

[PFS36]

Thank you 😊! We moved from a small country town of about 5000 people,  to our hometown with 65000 people.  We're in the entertainment district,  now and wow... should have made this move a long time ago. 

[Twpchair]

That's a big move! I just added square footage. That's a whole bunch of new customers and in that area as well? I'm going to say the same thing. WHY did you not move sooner!!!! 😆 😂 😅 I'm excited for you! Regardless of when you receive a loan/offer and with those numbers, you should! Will you keep me posted on how the big move has changed your business, your clients' new vs. old, or return customers. I am on a couple of other forums, and this question comes up often. Should I or shouldn't I? You know my answer already, and it's the same as yours and go for it. Way to knock it out, and here's to a great start! 

[PFS36]

Thank you 😊!!! We are thinking the same thing!!! Quadruple sales and a better clientele!!!

[Twpchair]

You're not the only one, unfortunately. Just imo only. IF you need it and can pay that off in, say, 6 mths. The next offer for most is higher (not all of course), especially if your sales continue to grow, which is great BTW 👍 and you haven't had a loan in a while, I see this more than not. There's one on here now whose offer was a 1/4 of the last he paid it off in 6/7 months, and it doubled did the same again and 3x the amount. Again, I am not saying that you will have the same experience. Unfortunately,  my crystal ball is broken, but I follow the trends, is all. 93% to pay off isn't so bad less to roll over, and you will get more of your offer. Good luck to you no matter which way you go! And keep those numbers growing and growing 💪 

[lisap1970]

I am new to thread but I’ve come here looking to see how everyone else is doing on loans. I’ve been with square for 10+ years with several loans . I’m  82% paid off but I haven’t connected my personal bank account because I mostly use my square checking . Should I connect my bank? Would it help? I also have been watching my sales and for the year I’m showing I’m done about 30% for the year but we are seasonal and much of our business is when the leaves change and the holidays we are a tourist town in the mountains. 
thanks for any info.