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 

[ThePlantDealer]

What does it mean if the dashboard haven't updated since the day before yesterday? 

[ThePlantDealer]

Still haven't updated today. Weird.... Last update was on 10/9. 

[Paulynne]

The same is starting to happen to me.

[Twpchair]

Are you processing every day? If it keeps up I would try to reach out to @Sammie_C and see if she can look into yours and the few others grouped together here not updating. I did receive 2 different messages this past week about experiencing technical issues and they were working on them. What or where the issue was they don't say. But Sammi can at least look into it and get you back to working. Good luck!

[Twpchair]

Did you process or swipe cards that on those days? If so I didn't get any reports of technical issues they have been working on. I can usually check mine by 3 pm EST and im almost like clockwork from 1-3 pm daily. The only time it's later is if there has been an issue with the system. Keep an eye on it and if it goes another day or 2 and nothing is changing tag Sammie_C and she is amazing and check it out. Is your loan part changing or going down with sales? 

[Healthyketo]

🚨🚨I finally got an offer from square just now ‼️ it is a very low amount (a few thousand) I’m very happy just to see it moving along. I’m hoping it gets approved and I can pay off quickly and get a larger one. Waiting for an approval now 🙏🙏 

(Been paid off since June 28th) I hope it gets approved!!!! 

[ThePlantDealer]

Congrats!!!! 🎉 About time ha  

[Kbso11]

Congratulations! I hope it gets approved! They’re definitely a lifesaver sometimes.  Crossing my fingers to get one too!

[Koleen1234]

Thats fantastic news 

congratulations 🎈 

[Paulynne]

 Thank you God! I along with the rest of the community am happy for you. 

[CTC18]

So happy for you! I know you’ve been waiting a long time!

[Healthyketo]

Hopefully it gets approved 🙏

[Paulynne]

Update for me: i’m sitting at 87% paid, with only a few thousand left to finish out my $30,000 loan. I’ve had 15 loans with Square, and my sales have decreased over the past few months. I’m thinking my decrease in sales might be why I’m not getting an offer. But I’m still making enough to pay for a good loan amount. Prayerfully Square will look at my account and give me an offer soon. Lately my account updates have been skipping days. I’m not really sure what’s going on.

[maryanngregg]

I’m sitting at 82% on my 12th loan. Wind storm blew a giant hole in my roof in my main coffee shop building, so I reached out to see if I could ask about why it’s taking longer than usual. Texted chat and they said to email the loan link. I did and was surprised that about 12 hours later, got the generic/not personal reply. 
My coffee shop has a few slower days, then bigger ones, so my monthly sales are still the same. 
With the costs going up with Squares processing, the loans were a big incentive to keep using them, as it just comes out every day and makes life easier. 
I guess because I am personable with all of my customers, knowing without them, I don’t have my business, it’s time to find a processor who feels the same about me. 
Happy Saturday to you all! 

[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 allllllll

[ThePlantDealer]

Let us know if you find another processor you like! I'm curious too. 

[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 allllll

[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 alllll

[Twpchair]

Even though sales have been slower overall how has the year been? If they go by the overall health of your business like it is stated along with new vs return customers, and a HUGE one people need to really try hard to watch this one is returns. It costs money, time, and humans to do this, and the other is disputes!!! I have a zero-return policy and store credit only. I do an in-store warranty on new furniture as our manufacturer just replaces it. Again, too costly for them to return a couch, repair it, and ship it back. The next load coming in or close by drops off. I know in the winter I get nervous that is our slowest time after Christmas and depending on the winter it can be dead slow in mid-Michigan! I have received offers in January and February and thought that you dear lord. So I believe imo they understand or there's more important or all other factors are good. Previous history etc. Most businesses have a slow period in a year. Watch and look at your other metrics and try to stay away from the 2 rough ones. 

[CTC18]

Sitting at 63% paid off in 6 months on a large loan. I’ve received offers at as low as 62% but also as high as 84%. Typically they’ve been in the 70-74% range. Praying for a miracle at this point it’ll come in early against the current trends. I have so much inventory to order for the holiday season and I normally have a loan offer right at this time of year.

[Mmccrain]

I got my second loan ($4k) when my first loan was at 60% paid off. I’m at 70% paid off on my second loan ($4k) all my metrics are green. I opened a new studio and have more clients, more working days and am on the grow and I truly need to get some things before the winter but no offer yet. Not sure how to handle so many unknowns on the requirements for loans thru square. I understand not wanting to roll over too much into a new loan but I don’t owe much at this point. I wish there was clear cut goals for getting a loan.