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 

[Mypeachfuzz24]

hello everyone. So I have a few updates. Of course, like many of you. I have been in desperate need of some type of loan. I have been waiting for Square. Someone mentioned that opportunity with pipe the day they mentioned it I did apply. In which the application process was extremely easy all of the representative were extremely helpful knowledgeable and very nice. I got approve. but again with this being new to me, I was nervous if it was a real thing,if it was a guarantee, if they were going to be any problems or if Square was even going to approve this.

So of course, like many of you read wait for the verification process with Square which took like three days. But Monday night I finally got an offer from Square! At 85% paid off My current loan is 54,000 they offered they offered me 39,000. Sales are great. I made more money this year than I did last year but like I’ve been seeing it through this thread, they are offering some people less. I did accept the offer.

So that same night Square gave me the offer about three hours later, They did send confirmation of verification with the bank account that I need it for pipe.

I am unsure how this is going to play out. I have still yet to hear anything else from Square as far as being fully approved or not.  I will definitely keep you updated. 

[lisap1970]

Around what time Monday did u get your Square offer ? I’m at 87% and still waiting . 

[Mypeachfuzz24]

i’m in Ohio. I received the offer about 2 AM via email.

[Twpchair]

Congratulations on both! You are the first I've seen with both offers. With this being so new this group looks like the test group. Without any real announcement from either company, it's kinda on us to keep people updated if you don't mind. We were wondering how this would affect either. Good luck and congrats! @Jjpainting Here is the first I've seen both coming in shortly of each other Pipe and Square. Definitely one to watch! 

[Mypeachfuzz24]

OMG last night I got approved for both and they both hit my account at the same exact time. Which is so wild luckily the square loan is less than my previous three so the daily percentage is less that with the daily percentage of the pipe breaks out, kind of even, what I’ve been paying per day anyway. 

I did notice that the loan fee is higher this go around with Square has anyone else noticed that?

[Twpchair]

Thank you so much for the information! You were the one I was waiting to hear back from! With Square as your processing and main partner for processing and loans. I had a feeling they would make sure you wouldn't overextend yourself. You're interest rate between the 2 equal to be that of squares for your more normal amount which is ok. The fee part I haven't seen anyone else say that yet. There are 3 others I believe were recently funded and they didn't say anything. If you don't mind me asking what was the old vs the new? I looked at my fews and nothing there is different.

[Jjpainting]

What are typically your loan fees?  I have never asked this question as I assumed it was a standard percentage for all (or near at least). I just compared my past two and my last one was lower than the previous one by about 3%. But that is when my loan dropped by near half.  My last was one was about 12.2% and the prior one was 15.8%. And I’m dividing the fee by the loan amount. Not the total owed back including the fee. I just jumped from 34% to 47% and will be at 58% paid off tomorrow on my last loan that I got only 9 weeks ago. I’m hoping it triggers an offer soon and gets me an offer that makes more sense. When I received an offer for my highest loan last November ($15k) the offer came when my $8200 previous loan was 66% paid off.  My last loan of only $6300 came when my $15k loan was 91% paid. 

I mean I think they really should aim the offers at the anticipation that your card processing sales would pay it off in roughly on year.  I think giving people loans that get paid back in under 4 months is more on the line of a payday predatory loan. If they truly want small businesses to grow, I think that would be more fair (given you have been with square for at least maybe a couple years to verify that you will continue to stay in business and grow to build trust).

I would love nothing more than to get a low interest bank loan, unfortunately my personal credit score is too low. I’ve been working on it slowly, but before going into business for myself and starting my own small company, I was only making $15-$18 an hour painting for a guy while obtaining more experience. Experience was great but no one can live off that and it just messed up my credit. But it is great that square offers these loans at all based off sales not your credit score. So I can’t complain really, just saying I wish they were more in line with the time you have to pay off the loan. Minimum payments only equate to half of the total with payments being due every other month. So as long as you consistently hit that min payment in less than a month, there shouldn’t be a problem.  My first payment for my current loan was due on the 16th of this month.  3 days later I had one sale alone that paid twice my next minimum payment lol.  After today and tomorrow, I will have paid off what equates to 5-6 minimum payments in like 2 weeks lol

[Twpchair]

100% correct right now you are doing just payday loans and paying them off so quickly. I understand that 100% of businesses get into a crunch when an oven goes out, truck dies, etc. I really try not to accept anything under 85% paid off now with the offers staying about the same. I'm losing 35% more of the offer by rolling that amount over. Unfortunately, if you're in a pinch there's no guarantee you will get one at 85% that's why I a line of credit at my credit union for that pinch. Pipe has seemed to step up and help between that gap. Which is amazing and 10% is pretty fair for their type of lending. I wish everyone the best of luck! I know it's been tough but guess what? We are still here and keeping small businesses going!

[Twpchair]

I'm sorry I skipped right over your question about my loan fees. Like yours, they vary with the loan amounts. I've had from 8% to 16%. I know a few have stated their fees have gone up and from everything I've read nope. It is just we are all different with the offers we receive and how much you still have remaining to roll over. We're never going to be the same with an algorithm. I 100% get credit. I had a 790-802 depending on what credit bureau. On Feb 6th of 2023 Saturday night I got a text congratulations on your new card. I didn't think about it much as I was waiting on my new card which was close to the expiration date. Then every 5 minutes credit karma was going off! I called the back of my card, and nope nothing they could do they got my bank account and routing number. Drained every penny, opened 13 credit cards, and 4 of those “you're pre-approved for 25k. Monday morning at 8:59 im at the door of the bank! By noon all my money was back, new account with a pin and password protected. State police did a report for the credit bureau as well and the credit union. The cards were open so fast from California to New York and he had me on video at the store at 8 pm that night looking for paperwork! Last week finally all 13 credit cards were gone and 1 loan!!!! Going on 2 years in February and hired an attorney and it's crazy the damage it did. My credit union business rep had me pull up on credit karma my last 3 credit reports and she attached it to my file and said I was in great standing with them with my 338 credit score!!!!!! Finally, up to 720, I believe, IDTheft is not good at all and you do all the work. 

[nikikostrova]

I'm at 88% still no offer.  I don't remember ever having to wait this long

[Obulldogs]

I'm at 82% still waiting. I make my minimums like 6-7 weeks early every time, so card processing is up.  I also applied for PIPE as well.  Sent them the initial info (banking info, EIN etc.) they asked for, and got an offer. After the offer however, I waited about a few hours for approval of their offer (?) and even got a call from my account rep.  We didn't really discuss much in detail just a contact point, I guess. Later, I received an email that they wanted actually documentation info to prove I was a business even though I gave the info to them already. I decided it wasn't for me and told them to cancel my app and close my account.  I'll continue to wait for Square where it's a simple process.   

[1683Cooks]

I would continue the process. I just got my pipe loan deposited this morning. Process took about a week had to wait until square verified the bank account and then they have to verify some documents for me as well. Got approved yesterday, funds were deposited today. 

[Twpchair]

Congratulations! That seems to be the norm a week. It is a good bridge between Square and waiting on an offer. Thank you for the update.

[Jjpainting]

Yeah this is common.  They wanted something online verifying your business is legit. I don’t have a website but I’m on google and google maps.  I sent them the link to both and they approved me right away after that. They are risking their investors money, so verifying that everything you do is legit is just them covering their but. It’s not like square where you have had a relationship with them.  Any bank or lender is going to ask for a lot of info on your business to know that you’re capable of paying back 

[Twpchair]

I get it and it's not out of the norm. To them, you are just another one looking for a loan. They operate a little differently and at first, they do require more information if they can't find you fast enough by a website, Facebook, etc. I had ID theft and was extremely nervous about giving my information out. With square, it's so easy, and boom done. I haven't done the Pipe thing either. I have such a security lock on my account the only way would be a 3-way call. I will keep it in mind but this is my busy season till after Christmas and ok right now. Good luck and hopefully this is the day!

[Obulldogs]

UPDATE:  I received an offer from Square at 85% Saturday night.  It was a little less than the last loan which means the loan fee was too.  However, the payback % was 2% higher! I'm always way ahead on minimum due so not sure why my rate would go up. I'm only open 5 days a week so maybe the two days I'm closed with not card transactions plays a roll. I'm loyal to Square for they have been good to me, so glad I waited for an offer. I accepted it Sunday evening and it was in my account in less than 20 minutes which is the norm. Good luck everyone!

[BeeBraids]

That’s some good news at least you received an offer! Thanks for the update

[Twpchair]

Congratulations first! I'm glad to see more offers coming in! In your long loan agreement can you look through it and see if it mentions anything about fees? You're the 3rd one this week that stated that. I went back through mine and I passed on my last 2 offers but I didn't see that. I don't believe 2 days off would be a factor. I don't know if the lower % to pay back would cause a time fee or if every transaction. Is it a new one-time processing fee? I don't know either. I did reach out to a mod to ask about it and for clarification but haven't heard back yet, I just sent it late last night.  I'm wondering just a guess if like other loans even our credit union charges a 20.00 one-time fee for when I started my LOC with them for paperwork and their time I guess? Of course, I accepted it because of the amount offered, and in out in a couple of hours, and she set it on my bank app for me. I truly don't know that's what I am trying to find out and didn't know if buried in your documents it was 

[maryanngregg]

Curious to what Pipe is? I’ve been waiting for another opportunity to use Square Loans but so far no offer. I have used them for years and am at 79% paid back, sales up, all green, not one charge back in 9 years and still no offer. I want to expand, it’s time! 

[Twpchair]

Unfortunately, it's been crazy around here with offers. Many are a higher % paid back to completely paid off. Others are popping in at 69% to 75%. A couple of months I could have told you to brace yourself for a ride! Now, if you scroll down I would say keep watching your loan page. Good luck and hopefully it will come in soon!

[Tailoredgent]

New here, wondering if people generally see offers come through right at the time the system review is done, or at anytime during the day. 

Waiting as many others are and just curious?

Trying the pipe option, let’s see…