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.

[Twpchair]

Thank you for sharing it here! It is posted in a different thread. People here should know if they see it pop up. ❤️👍

[Ulmen406]

Got an offer today at 82%, my sales are skyrocketing compared to the past years, loan offer was $2k more than the last. Still wish it would be about double what they offered as all of my loans are paid off in less than 4 months.. but oh well! Waiting on the 1-3 day approval now

[Twpchair]

Congratulations! Yes, back to normal would be awesome! I am glad it wasn't half of the previous offers I've been seeing! Thank you for the update!

[Luluskitchen]

We got a offer tonight we are 88% paid off and it was $20,000.00 less than last loan. Kinda want to accept but also only owe 6,000.00 on last loan and would really enjoy just having the loan paid off and have all my sales everyday.. paid over $300.00 just today out of my sales to repay the loan. 

[Twpchair]

I get that I believe both I saw yesterday were half or around it. Usually, the way it's been going but they took it for the next offer it doubled or up 60/65%. Not all of course but I go by numbers and what's trending. I don't take all offers. Especially, in the summer till Christmas time. That's my busiest time. Well not the offer you wanted but good luck with your decision and keep us posted.

[Jjpainting]

Yeah I am one of the people whose prior loan offer dropped by about 60%. I’m at 40% paid off in just over two months.  I’ll be at 60% within the following couple weeks and hoping that my following loan will go back to similar to the one prior.  

Also, I’m hoping that this pipe loan won’t affect anything.  If my next square offer is at or above my offer from last November, that would be perfect. If it comes in near 65%, and back where it should be, I can use it to pay off the pipe loan, and be in great shape. I am just thankful for the pipe loan. Came right at a time when I needed it most. I’m currently slower than I’ve ever been, which a lot of small painting businesses in my field are in the same boat.  People cut back on spending on things like this a few months prior to election. On top of that, I was recently in a bad car accident a few days ago, adding more unexpected expenses. 

[Twpchair]

1. You did the Pipe correct? I was wondering if that would affect your offers.  #2. While you are processing through Pipe if an offer would be available. This is just IMO I would look through any new loans AFTER you are all hooked up and using Pipe and see if in the new loan agagreement if Square takes into consideration the amount of the LOC and say with your daily processing volume, the health of your business we start to see instead of a 20k offer minus say 4k an offer of 16k. I know one square isn't going to let you get into a situation where you can't pay it back or the minimum due or with their rate depending on each loan and Pipe at 10%. I am off today because I had to go in on Sunday (my day off) and fill in. I will tag in a couple of Mods and see if I can get one to answer and not say call customer service. It's more of a general question, not my personal account info online. Let me know when you get your deposit from Pipe and then I will hit the mark as the best answer you can too and then you can see when your next square loan offers come and look right here how long it takes if lower by the amount of the Pipe loan. I think us users will have to pin this down by communicating and following the trends for now. 

[Jjpainting]

I’ll definitely keep the community posted on this all. I still haven’t received my pipe capital yet. They deposited the $1 back to me that I sent them for verification. The guy at pipe told me that means I’ll be receiving it later today or tomorrow 

[Healthyketo]

Seems like such a long process but so glad they’re willing to work with square customers.. I’m still waiting for square to verify the account so hopefully soon! 🙏 Praying you’re doing ok, read on another post you were in a bad accident. Hope you get your capital soon! 

[Jjpainting]

Just now got it!

[Healthyketo]

Awesome!!!! 👏🏼  thank you so much for the updates! 

[Twpchair]

Congratulations and thank you for the update! So just about one week from the offer to deposit. I'm sure that will vary a bit on what day of the week you receive an offer. 2. Not a ton of documents they needed. Seemed pretty easy to use and upload information going off your post. Just trying to get a better feel for the next group of offers or if it is a new daily thing. I am 100% sure imo 😆 that you guys were the test. Batch and see how and make sure no bugs along the way. The only thing I saw was the the waiting on Square to verify the account. Hopefully, they can work on that going forward and speed it up. Honestly, compared to a big bank it's about that long if not longer if the board has to approve it. We might be looking at the future here for loans???? 

[Jjpainting]

Unfortunately that has been squares policy thing for manual bank verifications for years. I read posts from 3 years ago saying up to 4 business days. Square send me an email saying it would be end of Monday but it was first thing the previous Saturday morning.  They sent and received the 1 cent the following day so it should have been verified that day. The guy at pipe showed the screenshot of the penny verification.  

Now let’s hope this doesn’t mess with my square offers. If it does there’s nothing I can do, pipe came through at a much needed time for me. So that was awesome they worked with square. I wish they offered like 10-15% of your yearly revenue, but I’m sure being my first loan with them, they will only increase as they see me paying them off. 

I also think I just landed a large $11k job (probably 7-9 days of work) which is gonna be a big help.  Job isn’t for another 3 weeks but I’ll have a deposit coming this week and rest upon completion. So two good things since my lovely car accident lol 

[Jjpainting]

Also being that my last loan was so much lower, the trend seems to be that the next loan comes earlier (60-70% paid off) and is larger.  I’m over 40% paid in 9 weeks. So it won’t be long until I get a feel for squares offers.  I’m thinking that the offers won’t change, i just hope the loan application doesn’t get like denied due to this you know?  I have no problem with 25% of my card sales being taken out for loans. Especially being that pipe loan won’t take long to pay off. And if I get an offer from square to get me through the winter, I’ll be in great shape from there on out 

[Twpchair]

That is the worst part waiting for the weekend to end! Then kick back up on Monday! Hopefully, those waiting where you are which seems just about everyone but Jjpainting hopefully tonight or tomorrow morning it's deposited! From everything I've read 📖 it's the initial setup that takes the longest. I couldn't believe the amount of 3rd companies out there that work with different pos and multiple types of lending or financing. Good luck to you all!

[Twpchair]

They do! I normally slow down as well as people don't know what or which way we are going. But this year I haven't so far. I know when I see Christmas in the other stores get ready. Well, it has been and last Sunday I filled up half the store smh all week bag and bag. On Saturday 90% of sales were Christmas items already! They said it's so depressing Christmas just makes them feel good! Happy day to you then and if that works for you awesome!

[Twpchair]

I'm looking through everything and have read through their loan agreement and from what I take as im reading through it. It shouldn't go against your square loans. They (Pipe) take into consideration as a 3rd party lender what your offers range from. I guess the way I took it was you getting a credit card, a new truck they use your debt-to-income ratio, and that is why we are seeing 4k to 4,600.00 max so far. Will that adjust im guessing so as the 2 companies intertwined with each other more. It is a start a huge bridge to get businesses funding instantly (I pay mine off immediately at my credit union) and use it for emergencies or inventory at a deal I can't pass up on. All of the above is just reading others' reviews and going off of Pipes's website. I don't work for either company. Their customers are happy that BB is a good standing with them. I guess we will see! I really hope people start posting here especially now! Their example, the documents needed, to letting 3rd parties into their accounts have to be done manually anything that might help others. This was rolled out pretty quietly and it looks like us will have to keep everyone updated! Thank you for explaining everything along the way! 

[nikikostrova]

I am at 81% and still no offer.  I've had 16 loans with square.  Sales are up, everything is in the green.  It's only been 6 months since this loan was taken out.  I normally get an offer by now and don't understand why I haven't yet.  Has anyone gotten any offers recently?

[Twpchair]

Yes, there are 2 under your comment. It was pretty rough on here for a bit but there are more people posting now I just received an offer. Hopefully, it will be soon! I will be honest with you there are a good handful completely paid off and waiting and others pop in at 69% and received one. Good luck and keep us posted! 

[Twpchair]

Yes, offers are still going out daily. For the last 6/8 months, it's been a higher % paid back to paid off. A few pop in around the low 70s but if you scroll up most are in the 80s now and waiting. A couple above you I believe was 84% and 83% and received an offer. Hopefully soon if you are paying it back that fast. Good luck to you! Keep us posted with your next offer, especially at what % that helps others to see if or what its trending at. 

[Hotbear1]

Hummmmm I’ve learn one thing about square they really don’t care about the loyalty of there customers at all we are humans and there will be up’s and down days but square will punish you for slow days or days u take off shame on square no matter how fast you pay back ur loan they really don’t care at alll