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 · 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 

[Twpchair]

Unfortunately, what you have read is what is going on. Not everyone posts here and like yourself, first-time user. Welcome, we do have a great group of long-time users with loads of experience and knowledge of the loan process. The good old for most (not all) tends to be a higher % paid back or completely paid off. Here and there you will see a 69% to 75% pop-in. A lot of lenders have pulled back and watching the market, economy, and other things going around the world. They have to answer to shareholders and investors as well. For the last 2 weeks or so the Pipe financing has seemed to help a lot on here to get them through to hopefully an offer. Good luck and keep us posted!

[BeeBraids]

Just applied to pipe, says this 

‘We're keeping a close eye on your payment configuration. As soon as we confirm your first revenue payout has successfully gone through, your funds will be sent to your designated account.’ Whatever that means. 

Also on 70% of my square loan as of tonight I’ll update on that when it updates (usually only once a  day right around 430pm) 

[Koleen1234]

Received a small loan from

pipe $4800 

Square 82% paid off and nothing

[photoguy2019]

I am 82% paid off as well with sales up 49% from last year

[Twpchair]

Correct me if im wrong but you were waiting for Square first before trying Pipe? I'm sorry I could scroll down but waiting for heating guy to come and jumped on here really fast. 

[BeeBraids]

Cool, How long did the process take do u remember?

[Twpchair]

From it looks like the first test batch 1 week roughly a tad longer if you applied on a Friday or Saturday. From start to deposit. 

[nyallblacks]

Pipe had me under the impression that they weren't Funding with open Square loans when they turned me down. I believe I was at 75%

[Twpchair]

Everyone I've seen has had a loan so far but 1 that I've seen that was completely paid off? I have seen a few in the 60% range. One got approved for both on the same day and the deposit was the same day! If you are interested you might want to call back and get a different Rep and go from there. Good luck! 

[Jjpainting]

I’m hoping for this. My last loan was less than half of the previous one with sales up 40% of prior year. This current loan which is about 10 weeks old, was less than my past 3 loans. My largest one was my last one that came in at 66% paid of the prior and the loan doubled. I remember it coming after a very busy week.  I just went from 34% all the way to 56% in 5 days. I’ll probably be hitting 60% tomorrow and possibly 65 in a few days. My first payment was due on the 16th. My second payment is due on November 15th. I’ve paid almost 4 times that payment already and on pace to have this down paid off before my second payment is due. I’m hoping this will adjust my loan back to what it should be 

[BWcreamery]

Hey man. I’m going to wait to except pipes offer to see how your offer goes with square first but wanted to ask you, 

Does pipe take a percentage at the end of day or per transaction like square? 

I got my offer Sept 1st and already 25% paid off but it was 1/3 of my last offer. 

Debating if I want to wait for square to up my next offer or take pipes offer to expand into our next endeavor. 

[Jjpainting]

Yeah I understand. I’m not sure if it’s going to mess up anything with squares offers. I’m almost to the point where I would be getting another offer. This time last year, my loan was just a tad bit higher than my current one. And I got an offer at 66% after a ton of sales and for double amount. I’m 10 weeks in my current loan and already 59% paid off. Probably willl be 64% in about an hour if a quote of mine is accepted. I’ve paid off 22% since my first payment was due on 09/16. I’ll keep you posted on any offers. With my current loan only being about 40% of my last one and on pace to pay it off well before my second payment is due.  Last year at this time, I was at $123k in card sales. Now I’m at $150k the last 52 weeks.  I mean if there is any consistency with loan offers, which I haven’t found any yet, but if there is, I should be getting an offer of around $18k any time. But I’m not holding my breath on an offer at all any time soon. I try not to get my hopes up.  

I haven’t quite figured out when exactly the payments are taken out for pipe.  When I spoke to the guy at pipe, I asked him the exact same thing.   He told me in real time (implying taken out just like square does with mine). When someone pays me by card, it’s in my account minus the loan payment in 2-4 minutes. During the past week, I’ve had a lot of sales (income) come in, 500% over last years time.  But at the same time, I’ve had to pay over $10k to pay for getting my car fixed due to accident (long story with insurance), paid like $650 for a rental and for one week only.   Decided it would be better to find a cheap truck for work. Bought one for $3500. Broke down 21 hours later and 40 miles driven.  So with a lot of money coming in plus going right out the window, i didn’t realize that 3 of my sales, pipe never took the money. When they  tried to, i didn’t have the funds for it. Got an email stating I owed like $500. Well since I honestly was figuring that the money I had, was already minus pipes 10%. I never looked. I emailed them back explaining this and that I had no bad intentions and honestly thought they had their money. I wanna keep a good relationship with em, so I can always have a line of credit with them. But I told them I need until tomorrow to pay em.  I’m hoping this doesn’t make pipe nor extend anymore after this. I mean this first line of credit was 2.5% of my yearly processing sales so it will be paid off quick. I’ll keep you posted on everything and if I figure out when pipe takes their money I’ll let you know. It seems to be kinda random. Between a day or two of the sale 

[Twpchair]

Hello, I just Googled their site and looked at reviews for the same topic how come it is taking so long to take out their percentage of daily sales? Reviews pretty much all like yours 1-3 days and boom big chunk gone. Their site does state the same thing 1-3 BUSINESS days so be careful on a busy day Saturday and Sunday and not a guarantee on Monday they will take it. It could take 1-3 days. Others said usually 2 days have been normal. Reddit wasn't as kind. I am not saying that they are good lifelines or bridges to use when waiting for a square loan or bank line of credit. But in the small print under terms and conditions, it states right there. I'm sure 99% of sale Reps don't offer that information up unless you grill them. You are on a string of bad luck, unfortunately, with an accident, lemon truck, and then boom 500.00 is a big chunk at one time. I have been there and done that with the car rental smh. I am really watching your next offer. In the days of the past, you are 100% Square did an excellent job of keeping up with your processing vs sales to do increases as you grew. Lately, I haven't seen but a couple with good or significant offers. My last up in sales and already ahead of last year's totals by 60% due to a mild winter. I was offered 1k higher than the previous but at 69%. That puts me roughly 40% less of the offer. I don't accept those unless it is needed fast. That's just me and I have a line of credit with my credit union. I like the upper 80s and 90s so I get most of my offers. Prior to the LOC in Michigan, we had that arctic winter and I accepted anything and everything to keep the doors open. YOU and only you know what is best and needed for your business! That's been the best advice or question I could ever answer. At the end of the day, it's you! Good luck to you and thank you so much for sharing your journey with both companies! I see others are following as well! 5* for keeping us all posted!

[Jjpainting]

I’d thought I follow up on that truck and things.  Picked my truck up from the shop Friday afternoon. Made it 5 miles and same thing was happening. Had to have it towed back and waste more money on a rental. Being that the dealership misled me by saying that the truck just had a full maintenance check up and tuneup and that there were no mechanical or engine issues at all. They literally fraudulently misled me even at my shop. I had them do a full maintenance check up and they came back with eight different mechanical issues with a quote of $2200. Now some of that I can do on my own but not most. And most are not urgent things anyways but it’s besides the point. I even offered to sell it back to the dealer at half the price I bought it for on Saturday just to get rid of the headache. They said no. And that’s saying something.  I bought “as is” but by law they can’t lie about the quality of the truck like that. For one, safety issue, for two, that can seriously mess up someone’s life. $3500 (which I didn’t expect to get much out of, but I expected more than 40 miles) which has now added up to $4500 between shop work and rentals is a lot of money for a lot of people. Luckily my dad is friends with an attorney that deals with this stuff. I’m hoping he can simply just make a call to the owner to scare them enough to fully refunding my money.  Obviously it’s not worth hiring one but between the $4500 and climbing every day due to more shop costs coming and rental costs plus loss of wages earned adds up. My regular vehicle still has a month until it’s fixed so I’m hoping this lawyer can at the minimum, get them to fully refund me 

[Jjpainting]

Secondly, yes you’re right about loans being lower, but the ones that are posting on occasion about getting a loan double or triple are the ones who had a lower offer before. My loans have always been around 11% of my yearly sales which keep growing. My last loan July 19th was 4.5%. My first payment was due September 16th. Since then (say 3 weeks ago) I’ve paid back 30%/5.5 payments worth. And I was just saying this is exactly how it went last year with lower loans and then November came and got an offer double my previous offer and it came at 66% which never happpens. This is my 5th loan, 68% paid in 2.5 months, and is my right around my second lowest loan ever, my first was obviously the lowest. My offers have been around these numbers $2570, $7350, $8350, $14,700, and now $6300. My sales are up around 30% of last year. I’ve processed more this year by around $10,000 then I did all of last year. I’ll be hitting 70% in a day or two. 

mu biggest fear is the pipe thing. I hope that doesn’t like not get me approved for a loan. I’ve seen people post on here getting a loan at around 20% or what they process a year. Granted this was 6-8 months ago. But this is the time in my life where a loan offer just back to my usual 11% would be a life saver right now.  I’ve paid $12k (well $9k with $3k more when my regular vehicle is completed) in unexpected car expenses in the matter of a few weeks. An 11% of yearly sales loan right now would be a godsend. That would be $17k minutes the probably $1800 current loan so still over $15k. Please square. Help me out lol. My savings has drained in half so quickly 

[BWcreamery]

Thanks for all the info! I saw you are at 70 now! That’s awesome!

I can’t believe healthyketo is still waiting for an offer! I agree with your post that someone should be able to look into it 

Also thanks for the info about repayment. That was my main question I couldn’t find an answer for anywhere on their site was if it was like square or if they would stack a couple days then withdraw it, I appreciate it!!

Hopefully you see a nice size square loan soon! I saw all the stuff you’ve been going through and praying for better days and soon 🙏🏻

[Jjpainting]

Thanks. And it keeps getting worse. Now the shop that is fixing my main vehicle and the one I just bought, is saying that the truck which I’ve driven 40 miles or so, midnight not even be fixable (or worth it that is). I have a lawyer now looking into it.  He specializes is this field of law.  I sent him the screenshots of the advertisement and messages from the dealer from that dealership as well as the quote the shop gave me regarding all of the issues, is definitely him misleading me intentionally and is going to do what he can. He’s pretty much gonna go after them for not only the $3500 I spent there, but the total shop costs thus far, the $1000 I’ve paid in rentals since. And loss of income for all the days I’ve had to deal with waiting for tows (twice now) getting rentals. Two days with no vehicle. He’s a friend of my dad’s so doesn’t even want any money from me regardless what happens.  He’s hoping by going after them for all that, that they at least at the minimum agree to taking it back for a full refund which I’d be content with.  Thank god I’ve been busy, but it’s going straight out the window with this crap. I’m at 74% now. Since my first payment was due (September 16th) I’ve paid back 38%. Not hard though when the loan size is so low. My card sales are 30% higher during the past year compared to when I got an offer last fall at 66% paid back and over double the previous.  Hopefully squares algorithm can find it in its heart to bring my offer back to 11-12% of my annual revenue in card sales. No more 4%’s lol. 

[Twpchair]

In the good old days, you would be closer to 3-4 times the amount by now. But it hasn't been with everything going on in the world. When I looked up Pipe and their reviews were not too bad really. Even there regular users not happy with their latest offer. One was sales up 40% no other loans through companies like this and the offer never budged. Lenders are tight right now. Still lend daily but it not as much or adjusting with your income like it used to. Hopefully, that changes soon.

[Twpchair]

Hopefully, soon! I'm seeing more and more in the 80s getting offers. Good luck!

[Twpchair]

Once you finish your day of processing cards and it goes through their system and they take out their money and no issues than they stated they will deposit your loan amount. Others have posted similar or having to deposit a dollar and the next day they deposited that dollar back into the account. I'm sure just making sure all deposits and withdraws go smoothly and accounts are correct. Good luck keep us posted if you would!

[Twpchair]

I usually update daily between 1-3 pm and 95% of my offers come between 7-10 pm. A handful in the afternoon and I believe those were before having the metrics. Good luck with Pipe! Just wanted you to know if didn't get a chance to scroll down most are saying they need bank statements, a federal or EIN number, or a link to a Facebook page or Google account. Just to confirm you are a legitimate business. They seem to walk you right through it all. Most are saying 1 week roughly from the start to deposit. Keep us posted if it's moving a bit faster.