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.

[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. 

[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.