Good news, bad news, eh @cmeshine. There are a number of reasons that COULD be part of why your new offer was lower.
- 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.
- 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.
- 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.
- 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.
Well sitting at 91% paid off and nothing .almost done at least paying it off and then won't need any loan from them and .I be looking to ho to a credit union. See about getting a other credit card processor cuz unfortunately when you really need squared they're not out to help their customers it's sad especially the ones that have been with them very long have had multiple multiple loans always paid early on time never late and the only thing they can tell you is it's algorithm my **bleep** I believe it's a bunch of BS but it is what it is thought that with the feds cutting the interest rate by half a percent and news of them cutting another quarter percent in November that they would start lending but already $68,000 or less than seven grand left and I'll be done it's a shame cuz Square makes plenty of money off of me and countless others through their fees and credit card processing and all the other stuff associated with subscriptions and everything else but yes they don't want to help out there long time customers they ought to have an option where they can do a manual underwriting and a manual approval or offer but no they say they can ultimately I believe it goes through a human to approve the loan but enough venting for me I wish everyone luck that's going to hold out and wait for one I've already given up on that hope
