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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[Jjpainting]

square finally finished verification.  I transferred the $1 and emailed them. I’ll let you know from here how long it takes for my funding. I just emailed them. 

[Jjpainting]

About 5 minutes after I transferred the $1 i received an email stating my funds were on their way to my square account.  

[Twpchair]

Congratulations and thank you for sharing your experience step by step. I see many others like myself that's not familiar with these companies.

[Twpchair]

From what I read on other forums that are using a different company than Pipe it took about a week for the first time. They said after that and a good relationship they did offer to increase their line of credit. It went much faster after that. I am just repeating what a lot of other people are saying I've never used one before besides my credit union. I think like anything else new it seems to run a little bit slower and work out any bugs. I do know personally with mine at the CU they offer a couple of times a year to automatically increase mine. I haven't done it but it said just hit the button and you are all set no need to miss out on time in your busy schedule. That would be more like the old days with square and the offer comes in almost instant approval and depending on the time money in the bank the next day!  Good luck with you all waiting for this. It looks like you are round one and keeping each other informed! That will help others kinda get an idea!

[Jjpainting]

My funds are on their way to my account 😁. I just got into a bad car accident and, being that I hadn’t been in one, I never paid attention but I found out that I never elected for rental insurance. So between that and my deductible and  all of a sudden my business slowing down, this is very timing for me 

[Twpchair]

I had to look them up and I am on the same page as you. I don't think it is a scam just a newer start-up go-between. Their rates compared to others online wow 10% vs a couple I saw in the upper 20s! Good reviews except if you didn't get an offer type thing. No 100% guarantee you will get one either. The other comments were from started 1-4k and built up with them as I went along. Definitely, if you need it and struggling to keep the doors open. Here is 2nd option. Thank you for sharing all your information! Users to users are the best way to get a better understanding of how or what is going on. I would rather hear your account of what's going on with you than a generated response. 

[1683Cooks]

My loan from square has been paid off since May 2024. I had 4 loans in 6 months from square and haven’t received an offer after paying off the final one in May . Crickets since , I’m processing close to 500k annually 

[Luluskitchen]

We are 87% paid off on $48,956.00 ( including Fee) been with square since 2018. We have paid back 42,600.00 in 9 months. We are up about 20% from last year. The last few months have been slow but we are still beating our last year sales. This is our 13th Loan and we have always had a new offer in or before the 70% paid off range. I am totally lost on how this whole thing works. At this point I'm just ready to get the remaining $6300.00 paid off and get to enjoy the extra $1200.00 a week of my sales that go back to square to repay the loan and look for a company that takes less of my money in transaction fees. We have had a hard summer as we are a vacation town and people are just not traveling as much. It just kinda hits ya hard that when ya actually need Square all you hear is crickets from their end. 

[Twpchair]

It does and it has been a rough summer for consistent loans, offers lower, what percentage, the list could go on. I went from the same as you 4/5 years ago guaranteeing an offer at 70-75% paid off. Now, I went from 84% to 91% then threw in 69%. It's all over! There's a big handful of people who are completely paid off for months. It's not just you but what is going on in the loan world. Good luck to you and hopefully we are seeing more and more with offers!  

[Twpchair]

Ugh, there are a few completely paid off for months and waiting also. It's been a rough summer but im seeing more and more lately. I am hoping it pushes out the loans. Good luck to you and everyone waiting!

[Koleen1234]

It didnt offer me anything as well 

i have 5,000 more to pay on my square loan . Loan with square was 31,000

[Twpchair]

Hold tight it looks like this is round 1 and possibly the test pilot group! I have been with Square long enough to remember I believe 2014 and I received this email that your account is available for a loan. I was in the first rounds of loans going out. Then test round or not it was boom boom and done with money the next day! I was so excited to get that 1k and the rate was low. Hopefully, all goes smoothly, and they start busting them out. So far at least posted on that thread the most I've seen has been $4,600.00 so it looks like and I am just guessing and going off other forums that have pos and they use a different 3rd party loan company and their line of credit was increased or they offered an increase. I guess we will see! Good luck to you in everyone waiting on both now!

[Jjpainting]

Pipe has been around for a while, but I think you’re right about them just starting to begin lending to people like us. Before they only lended to a different kind of business (or something like that). I’ll definitely keep all of you posted on my experiences with them. 

[SouthernSass24]

I finally got a loan offer at 85% paid and it was 5k less than the last time! Sales up 300% paid 10k off in 5 months! What is going on 

[Twpchair]

It's been very common lately. Most (not all have been lower) last summer started this wackiness. I have seen from 1k lower to just enough to pay off the last loan and the new loan was 0.00! Since you are doing great and paying off fast a good handful of people on here now said their next offer went up. There is no guarantee of course just going by numbers is all. The more users post the more or easier to see a trend. A few will jump on and give their experience for the last few loans. They are great for sharing. Congratulations on any offer though. It's finally looking better. 

[Paulynne]

I only told you all about Pipe since I had to use it in the past. It was simple for me. I don’t get any kind of credit for referring you to them, I was just trying to help. I didn’t have to submit documentation. I just connected through plaid, but I guess it’s different for everyone. 

[Jjpainting]

Did you not have to connect your square or whatever account your card processing goes through to their account?

[Paulynne]

That part was odd, but it seemed legit. I transferred $1 into my new account with them and the money was deposited instantly. Like I said, it seemed legit, since I don’t think Square would allow it if it weren’t. But I would contact Square and ask if you feel uneasy. 

[Jjpainting]

I don’t feel uneasy. I’m just curious. So you had to manually input your pipe account number into square and wait correct?  

[Healthyketo]

Has yours went through? I was told it was in review and than just checked and now I’m able to reconfigure but says it can take 2 days. 

[Jjpainting]

How long after signing up were you sent your funds?