New Square Loan in 2024

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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]

Thank you! And no I don't work for Square just been with them since day 1 when I opened my business. I understand people are frustrated it's not been the norm since last summer and so many people are just barely hanging on. Believe me, if I worked for Square it wouldn't be long! I would be like Oprah up in here with you get a loan, you get a loan, everybody gets a loan! And you know exactly who does if it says Mod they do. You nailed it with the forums and I get faster and more detailed information when I need help with technical issues I think im allergic to computers! Good luck to all those who are waiting! I see a couple who have been paid off completely finally get an offer! Have a great day! Off to the paint booth! Fun!

[Toripori]

Update from the UK paid off since April 18th still no offer. Had an excellent week after a dicey summer (still up on last year mind you!) still can’t see my metrics, still waiting………Square has zero answers and is nothing but vague but yet has made a nice sum from my transactions and add ons. It’s a love hate relationship at this point.

[Twpchair]

Since last summer here it's been hit and miss. It does get frustrating when you have been with Square for so long and I have as well. We got used to a guaranteed loan offer at 70-75% paid off. Now 91, 84, 81, and then 69%??? Nothing different but up in sales. I have reported multiple times about metrics not working for months for some people. With you, I can't tag in the Mod from the UK. I look at mine daily and like clockwork 1-3 pm updates. Do you know who the Mod is on your loan page? If not you should be able to scroll up top and on a pin note you will see it highlighted. Screenshot no metrics and make a post and @ who it is and tell them you need tech support, please.  Good luck with everything going on. I'm sorry you are having issues going on over there. Hopefully, this helps!

[Paulynne]

I hate to draw attention from Square loans, but I know people are suffering and we are all looking for help since Square isn’t coming through as quick as we need. There is a company called Pipe that will loan based off your Square sales btw. If they ask, let them know Ennyluap sent you ❤️.

[Jjpainting]

Thanks for this information. I just applied and connected my square account. My offer was only $4k but it would be so helpful. I hope it gets approved. It says it takes between a few minutes and 48 hours. 

[PFS36]

How do you connect to pipe?

[Healthyketo]

You are an angel! I got approved for $4600! Definitely can put that to use for the business. 

[Jjpainting]

It says I need to attach my account with them through square so they can transfer money from my square to them. Which I did. But for square to verify, it says it takes out $1 or less and then refunds the money. Not sure how square will verify this. How did you do it?

[brown17]

Careful, make sure this isn't a scam.   Do not give any account info out 

[Tyconcrete]

Did anyone  receive a loan and get funded yet

[Twpchair]

When were you approved? Yesterday another was asking and they were on day 1. Their offer came in a little after 10 pm though.

[Jjpainting]

I was approved yesterday.  I would have already received it if I didn’t have my card sales go into my square account cause my other bank would have linked faster. 

[Healthyketo]

Well apparently they don’t take square bank statements and that’s all I use so looks like it’s a no for me! It was worth the try though back to waiting for a square offer 😪

[1683Cooks]

at what point did they ask you for bank statements ? 

[Healthyketo]

I received an email yesterday about submitting proof of address and bank statement so I submitted my square one and they just emailed saying they do not accept square statements at this time 

[PFS36]

Maybe it's just me, but I get a strange feeling about this pipe thing.  I'm never comfortable with giving out my personal bank information. 

[1683Cooks]

I’ve done my research they are a reputable company, these are standard procedures when doing business loans . Mostly ALL loan companies require 3 months of business bank statements and they probably requested them from @Healthyketo  because they weren’t able to connect their bank account through square using plaid . So they probably manually requested the statements because square isn’t an option on plaid for connectivity . I’m awaiting square to connect PIPE to my bank accounts and do the $1 verification. I will keep everyone posted. 

[Healthyketo]

On my activity page it shows that my checking and savings from square is connected and shows the last 4 digits of my accounts so it was accepted by plaid. 🤔 this is interesting 

hopefully someone gets funded and approved to see if it’s legit 

[Jjpainting]

Same with me. I was able to connect mine easily.  But with square could only manually connect to their end so that’s taking square a while to do this. Have you done this step yet?

[Twpchair]

I get 100%!!! About 16 mths ago my bank account got hacked bad! Not my debit card they got the account about 6 pm Saturday of course and my credit karma started blowing up with congratulations on your new card. And then 10 minutes later they were just blowing up! It ends and here comes them online or mail offer type loans 4 of those 26k, 24k 10k, and finally 4kin loans and 13 credit cards!!!! Done about 7 pm on Sunday! I was at my bank at 9:00 on the dot! They drained that too. I got all my money back and had to call the state police and reports upon reports to send off to the credit bureau. New account and now password and pin protected. I can't connect my bank here in the loan part unless I do a 3-way call. Plaid or anything like them couldn't get in it without me. I never even did it after that nightmare! Just my personal experience and my own opinion on it. Others have awesome experiences! Hopefully, you do what's best for you and your business! Good luck either way you go or just wanted to wait for a square loan. 

[Jjpainting]

Hmm. I never got anything asking for this.