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 

[Twpchair]

My last one was 81/84% paid off. In June it was 91% paid off

[Twpchair]

Lately no, the offers for most not all is 90% range unfortunately, lately the days of 70-75 % are few and far between. It is between upper 80s and 90s. 

[Twpchair]

Did you receive a new offer?

[Kim7278]

I’m 87% paid off…no new loan offers.  Everything got me is in the green for metrics and bank account is linked.  I’ve been with square for about 12 years. I’ve recieved 4 loans through them and always get an offer around 70-80%.  Minimum due is always paid way before the due date.  I’ve reached out via email to square loans asking if there was something that is holding me back from recieving another loan.  I got the same generic answer what they look for in metrics (which is all good for my business) and I will be invited when they determine I’m eligible.  That answer wasn’t very helpful.  It is extremely discouraging that you can’t request a review after a certain percentage is paid off and how there seems to be no certainty when or if you get another offer even if you meet their requirements.  It would be helpful to get a personalized answer as to why you haven’t become eligible.  

[Breebree89]

I’m in the same boat. I’ve gotten offers after paying 50% off. I’m 68% paid. I wrote to the chat team Friday, they said they could escalatemy account and look into it. It would take 24-48 hours or I could call the 855 number they gave me. I called never got anyone on the phone. So I wrote back in the chat and told them to escalate my account. I don’t know if it will help. I guess I will see tomorrow if I get an update. 🤷🏼‍♀️

[Twpchair]

The trend right now is much higher paid back % wise. I don't think I've seen one person in their 50 or 60% paid back yet. Barely a few in the upper 70-75 and 80s. They are still doing them daily but most are paying back more and the percentage is usually around 90% to paid off even before a new offer. 

[hopecafeandtea]

Did you ever end up getting. Loan offer? 

[Twpchair]

At 50% paid off no I haven't seen anyone in a few years. Right now it's trending higher paid off for most not all though. Good luck!

[TheRealChipA]

Hey @Flutterbeauty.  Square loans have no mechanism for allowing us to either increase or change the amounts of a loan once we accept it.  Also it is not possible to ask for more money than the maximum offered when new loan offers are extended.  From what I’ve read in other posts, that will probably not change.

Having said that, on your loan eligibility page, there is an option to connect Square to your bricks-and-mortar bank.  This allows them to possibly give you access to more funds and bigger offers for FUTURE loan offers.  But as long as you are paying off an existing loan, what you received is all that you will receive.  That’s just how Square Loan contracts work.

If you are really in a bind and need additional funds ASAP, your best bet will be to reach out to a local lender and explore your options with them.

Good luck.

[Flutterbeauty]

Hi there, I have received a couple loans from square but is there a way to ask for more than they are providing for you? Could they possibly do a check in throughout the pay off time and see if you need help with your small business? Times are tough! We can use all the help we can get! 

[Kbso11]

So I’ve had loans before and currently am about 80% repayment. I’ve always met my min requirements way early. All my factors are all in good standing. Is there something more I can do to make me qualify sooner? I feel like all my appliances ant work are going out at once! 

[Minion]

Hi @Kbso11 

I'm sure you are probably already aware of this thread with other sellers like yourself in similar situations.  There is a really decent amount of "data" in that thread from all different types of sellers and business. Honestly other than paying off your loan early in full from our bank "may"** qualify you sooner, that is a very large gamble to take and not to mention the 7-10 days it could take for the final payment to fully process, and then potentially be considered.  

The bets thing to do is to just keep pushing forward with business as usual, and seeing as you are so close to paying it off, hopefully something will pop up in the next couple of days/weeks for you. 

[FloresLiquor]

I used to get Square loan since 2020. In 2023 , my account was not current in 2023. So they give me pre-approval offer in Nov 2023 and then denied as my other business account was not current on my other Square account. Then Dec 2023 onwards I was current on all my accounts.

      It has been over 4 months , and Square does not offer any loan even though all factors looks green except Account Activity.

  Upon contacting Square in March 2023, they say that it will trigger auto offer. I did mention that my account is current since Dec 2023 . So whats is reason that Account Activity shows 'Needs Work'. They do not have answer for it.

  I also asked if they have flagged my account not to receive any offer in the future, then they said that there is no issue with my account.

  I feel very disappointed that even though I was giving business to Square since 2020 then they dont appreciate customers loyalty and business.

  They flagged account not to receive any offer once you are not current in the past and no matter how good your current history shows, they will simply flag.

  They give false information and false hope to customer stating that they  will get offer automatically.

   The only reason that I was with Square over 4 years because they used to offer better loan terms even though CC processing fee is over 3% which quite expensive compare to others.

     But it seems they do not appreciate customers business.  I am thinking of switching to other POS and CC processing companies who appreciates customers loyalty. Anyone experience this?

[Minion]

Hi @FloresLiquor 

If I'm understanding your post correctly, you have two square accounts, and one account was not current as in it had a loan payment or a chargeback that needed to be taken care of to bring that account current and not negative?

[Twpchair]

That's how I'm reading it as well? But if you're account activity needs attention and its not green then you need to bring something up! Processing volume, mixture of customers etc. Something in there will let them know what needs to be improved. They clearly state they look at past loan and history, charge backs etc. I'm not sure if I'm reading the question correctly either to help out with the proper response. 

[FloresLiquor]

Account 2:

- Was not current in Nov 2023.

- 100 % paid off in Dec 2023

- Got loan in Dec 2023.

- As of April 2024, it is current with all Green status

Account 1:

- 100% paid off in July 2023.

- Got pre-approval offer in Nov 2023

- Denied approval in Nov 2023 because 2nd account was not current

- From Dec 2023 until April 2024, all factors looks Green except 'Account Activity' shows 'Need Work'

In summary , for past 4 months , there is no issue with my accounts but they simply do not want to make offer by flagging account .

[Minion]

---

@FloresLiquor wrote:

Account 2:

- Was not current in Nov 2023.

- 100 % paid off in Dec 2023

- Got loan in Dec 2023.

- As of April 2024, it is current with all Green status

Account 1:

- 100% paid off in July 2023.

- Got pre-approval offer in Nov 2023

- Denied approval in Nov 2023 because 2nd account was not current

- From Dec 2023 until April 2024, all factors looks Green except 'Account Activity' shows 'Need Work'

In summary , for past 4 months , there is no issue with my accounts but they simply do not want to make offer by flagging account .

---

Thanks for the updated  info @FloresLiquor .  

There could be some type of internal flagging within the algorithm on your account due to the one account that was not current for that period of time.  Like @Twpchair mentioned, they do look at past loan history as one of their metrics used.  Whether it is actually "flagged" is a different story.  While the two accounts are different, you yourself is what times them together and who would be responsible for those accounts. 

When it comes to Square Loans and offers , it really is hard to figure out just exactly how it all works.  Their metrics shown in the eligibility are more of a suggested guide, but just because they are all green doesn't necessarily mean that an offer will be populated, it just means that you are in good standing.  It's still a good thing though to have them all green.

I don't work for Square, I have no hard evidence on how offers work, I am simply basing my answers off from either experience or reading through many of the other loan threads over the years from other sellers. 

 At the end of the end though, it is your business and no one knows what your business needs more than you do. If a loan offer is what you need their are other alternatives to that while still using Square.  Who is your business banking account with if you don't mind me asking?   

[Twpchair]

Makes perfect sense now! Thanks again! The break down of the accounts and time frame makes perfect sense now! Going forward it's easier to help others with multiple accounts. 

[FloresLiquor]

Got an offer and approved loan in 1st account on 4/11/24.

Thanks Square for being considerate!   Square funding  is a game changer that fuels business growth. So I apprciate loan offer and approval !

  Thanks Minion for your time to reply !

[Twpchair]

I don't know if they have "flagged" your account or not? You currently have a loan from one account that's roughly 4mths old and you are still paying on. You might not be eligible for another loan for the other account just yet until you pay down the first loan. Over the last year lending or lenders have tend to pull back a little with the economy not being so stable. So if you were use to getting multiple loans for both accounts that might not be the case right now. You might have to pay one off before the next offer comes in for the 2nd account.  Keep working on what factors need work and process daily! It's not just you I promise lots of people/businesses and even lenders are feeling the crunch. Good luck and I hope you have a great 2024! I'm glad @Minion could break it all down clearly. 

[FloresLiquor]

Got an offer and approved loan in 1st account on 4/11/24.

Thanks Square for being considerate!   Square funding  is a game changer that fuels business growth. So I apprciate loan offer and approval !

  Thanks Twpchair for your time to reply !