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.

[Healthyketo]

Just did mine and I was approved for $4600!! Completely shocked cause it’s very much needed! 

[jackiebee12]

Can you help me with the info to find it?

[Healthyketo]

www.pipe.com

Im waiting on verification from square just like all the others hopefully it gets approved 🙏

[jackiebee12]

thank you!’ it says it’s assessing me now 🤞🏽🤞🏽🤞🏽

[Tyconcrete]

I didn't get approved  but at least they did contact me so .back to waiting on square  at 90% 

[Jjpainting]

Where was the phone number located at when they called you?

[Tyconcrete]

I want to say Georgia I believe that's where it was from

[1683Cooks]

 https://pipe.com

[nyallblacks]

I applied but it's just been reviewing the business information for the last 20 minutes 

[Jjpainting]

I’m basically just waiting for square to manually verify that bank account. Once it’s done verifying then I can transfer $1 in there so they can see it’s linked. Then they transfer the loan. The loan fee is basically the same percentage as square so not terrible  

[Tyconcrete]

Has any gotten funding from them yet deposited into bank yet if anyone has applied 

[Jjpainting]

Nope. Not I. I spoke to them. They said as soon as square verifies my new account that I linked up with them, I’ll have the funds deposited the same day (if square verifies it at a reasonable time that is).  But that can be anytime between today and Monday. I’ll keep you posted

[Tyconcrete]

Hopefully  it tonight or tomorrow 

[Bliss-B]

Gutted, was hoping this would be available in the UK but nope. Oh well good luck to everyone else 😊

[Twpchair]

Hold tight and hopefully, it works there if not some other companies that do. This looks like the first round of reports and updates! 

[nyallblacks]

They didn't offer me anything. It takes into consideration your current square loan. Was everyone that was offered a loan, fully paid off on the Square loan?

[Healthyketo]

It gave me an offer for $4600 fully paid off with square for going on 3 months 

[jackiebee12]

how long did it take to assess you?

[Jjpainting]

I’m only 2 months into my square loan, but my last loan dropped by about 65% and I’m 40% paid in two months. Still was offered a line of credit by them at 10% daily payback of my card sale. I read about this company online. They are not actual lenders. But an intermediary between investors lending to businesses in exchange for the loan rate.  

[PFS36]

Do you think pipe is legit?

[Jjpainting]

seems to be from what I read. Been around for 5 years and strictly deal with businesses who use square and stripe.