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.

[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.

[Twpchair]

As you see here on the post 3 finally just got an offer and have been paid off for months. All summer it was trending higher % like 90s to pay off for most. Everyone is different and they take into account a ton of factors. As far as the overall health of your business sounds great and congrats on that!!! But they take into account the economy, the growth of the health of the market, and what's going on around the world and its stability too. Unfortunately, lenders are holding a bit tight. In 21 days that does play a factor and hopefully, by then, it's going to either mellow out the market or spark it and make lenders happy and back to normal as can be. Lately, it's been 80’s a few popped in here with low 70s?? We haven't figured out that algorithm yet, unfortunately. Just keeping people informed is our best way to try and get a trend that is happening. I think here we get more information than the calling and getting the same script. 

[Twpchair]

We all do! All I can say is keep doing as best as you can to keep going! Growing is a great thing and I know not cheap! Try to process daily if you can and no disputes or returns if possible! Those 2 are big and you want to stay away from them. Good luck hopefully soon! 

[beautyspabrow]

Update: I got an offer yesterday at 72% paid off, same offer as the last offer no increase at all! I'm not even accepting it right now because I owe 4500, and it just doesn't make sense. Ugh I miss the days of higher offers!!!

[Paulynne]

Is the offer close to what you owe? I’m just trying to get as much insight from everybody as I continue to wait.

[Denisemcam24]

Hey Paulynne, 

I’m sitting pretty close to where you’re at now. I owe just under 2k on a 30k loan. Lowest amount I’ve ever owed. I spoke to square regarding my account because everything should be eligible for a new loan and she explained it’s the volume of sales(transactions) not necessarily the amount of sales that give the attention to lenders. That helps to know, it just doesn’t help. A lot of my transactions are higher just not a higher volume of transactions.:(

[Toripori]

Well that would explain things for me a little, my business has changed a little and I now supply wholesale as well as selling directly myself. That plus I raised my prices and now have an offer of buy 3 for a set price. This has meant my gross has gone up significantly but my number of transactions has stalled. Fantastic, I love that square doesn’t look at the bigger picture of an individual business! 

[Denisemcam24]

Exactly! I got a 27k loan+ 3k fee back in January, my slowest month ever. I was actually surprised that I got a loan then. The lady told me I had a higher volume in January than September, and surely she was right! It was about 100transactions more and 8k in sales less. The algorithm is so hard to understand sometimes.

[Twpchair]

Yes, that's why I try to tell people we all have a slow month, or in my case now its has been about 60/70% this last few weeks if not longer. I still get 10+ plus swipes a day but usually it's the opposite. This has been a different late summer/fall. I think in my case retail furniture they are bringing cash to stick to their budget honestly. But when you look at the quarterly sales and metrics everything is up and doubled sales already from last year and I am really busy until after December. End of January I slow down. So if you close for a week or go to fall hour/winter hours I don't stress that much over that. Disputes and returns are really important to keep to a minimum to none!

[Twpchair]

They should 100% also in the winter or whenever is your slower season and might close a day or 2. I have a stand for the house and I push 10-20 pieces of furniture on sale if im closed and that way im still swiping or processing a sale. I'm retail furniture in Michigan and we close on a Monday in the winter or a bad storm or ice. It is time for an online sale! But unfortunately, not all of us are the same and we are all unique in what we do, what we offer, and our billing part. Good luck and hopefully you can brainstorm and figure out a way to get it to line up or process once a day some how. 

[Twpchair]

You are correct! It's 8.00 or 80.00 it's that you are swiping daily! The other 2 biggest are returns and disputes! Keep them at zero if possible! They cost money, time, and a human to do all of it. I am retail furniture and I still have a zero return policy! Instead, all of the new furniture comes with a warranty from the company. 2nd I take care of my customers on my own depending on each situation with in-store credit, a return in-store only, and I recoup it in the end because the customer is happy with it and comes back! If it's minor my husband can fix it and we can sell it in the gently used section. So I never had a return or dispute. I know in-store vs online is very different and not as easy to control but those are big ones. Good luck and hopefully soon! 

[Paulynne]

Ok that makes a lot of sense. That doesn’t give me much hope, but I’m going to keep selling and see what happens. 

[beautyspabrow]

my loan I'm paying off now at 78% was 13,300. Previous to this one, in June it was 18,400. 

they just offered me 18,600. So no big jump, and I still owe 3400. Its just not what it used to be.

these low offers and high percentage paid back just aren't it 

[Twpchair]

Unfortunately, I wouldn't either! By the time you roll over and subtract that from the new offer depending on how much you process 1-3 months paid off and then here you are again. It's a 50/50 shot next offer might be higher or the same but at least by then the other would be paid off or in the upper 90s and a different story. I miss the days 4/5 years ago according to sales each loan grew and grew. In the last year or so mine has been 1k higher to 6k higher than the previous which was 2k lower but I was 91% paid off and have been watching the trend all summer. Then 5 months into at 69%, they sent an offer 😆 no I passed. 

[BeeBraids]

Just got a loan offer from square for 4500 83% paid no instant approval this time

[Healthyketo]

Congrats! Still waiting on my approval 🙏 hopefully by Tuesday. 

[Twpchair]

Yeah, I just told the other weekend one. I never moved until Monday but that being a holiday im going with Tuesday. I could tell though if it was moved along though. Go to your loan circle and yours was completed and a full circle and right under it is was your previous loans look there and see if your new offer is there as your soon-to-be loan. It worked for me every time as I tend to get my offers on Saturday and nothing official till Monday but my metrics, my circle if I had or accepted at 91% was closed and 100% paid. Right under was my new loan amount minus the 9% it rolled over. 

[Paulynne]

Is that similar to what you received in the past?

[Twpchair]

Unfortunately, im a late Saturday night person for about 70% of my offers, and nothing moved until Monday. It might be Tuesday before things start moving im not sure how it works with Monday a holiday. Most people who fall on one said it is usually the next day. I look at my old loan and see if the circle is closed and then right under it should be the old loan rolled over into the new one and that dollar amount would be there. Mine would on a Sunday even though I wasn't officially approved. Then I knew ok they didn't need anything else or whatever all was good just waiting for an official back-to-work week.

[Sj1976]

I’m happy to report I got an offer tonight. I have been paid off since Aug 16. Checking daily and finally I got an offer! I accepted, was approved!