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 

[Healthyketo]

I was approved a little while ago! 🎉 

[CTC18]

Congrats!!!

[Ann14]

Yay im

so glad I checked my emails and seen you finally got an offer 🙏🙏 was offered back in July and now I’m at 60% ..waiting game to see if it’s gonna take 80% for an offer or sooner ! 

[Twpchair]

🚫 stop don't tease me 😂! Congratulations 🎉 yesssssss finally! I am so happy for you! Let's keep this going!

[Paulynne]

Yayyyyyyy!!!!!

[Lynix123]

Congrats for those who got offer! 
Do you guys get the offer when it’s usually updated or after updated? Thank you 

[Hotbear1]

Good morning we are sitting at 85% paid and we are way ahead of schedule paying back the loan this is our 8th loan on with them and no offer in sight!!!!!! Not even upset once we hit paid off we will not accept any more loan from square they are to messy for a growing business you can’t count on them at all no matter how loyal you are square need to rethink there process 

[Oxbow]

Im in the same boat, 1st time in 8 years no offer at 70 to 75%

[PerroneTech]

I got an offer today. At 88% paid. The offer is $5300+ less than my previous loan. I don't think I'm going to take it. I rather wait and gain back the 19.5% of daily sales than to take such a small offer.

[anchohoney]

Here we go again. 81% paid off, all factors green, no new offer. We use Toast at our other restaurant, and they make a new offer at 50% paid back, like clockwork. Why can’t Square meet that standard?

[Denisemcam24]

I’m at 95% paid off, I should have it paid off within the week. I did finally get a loan offer today. The offer was 19k less than my last offer. I unfortunately will be declining this offer as I’d rather have the 20% in daily sales going forward. 

[Pecard81]

I don’t understand why so many people say “I am **% paid off and no offer insight” when has a offer ever been insight till you get the offer.   If you don’t like the way square does it go elsewhere, I understand we all want it the way it was when you would get the offers after 55% paid back and growing exponentially. 
Don’t get me wrong I want a offer and i am only at 63% paid back in 5 months, but I’ve never had a “offer insight” before I actually get a offer.   Best of luck to everyone 

[Paulynne]

Honestly I think everyone is here expressing themselves as we all navigate a tough year. Most of us love Square and what they offer. The “insight” terminology used here, is really just that. People are simply saying they don’t see an offer on their dashboard, so the offer isn’t “insight”, because it’s not there to see. I hope people still feel comfortable posting, it definitely helps to have a community of other businesses owners when you’re going through tough times. 

[Twpchair]

It is hard for some at first. They got so used to that guaranteed loan almost like clockwork for me it was always 70-75% for years. Honestly, it's been trending differently for about 4 years. Others don't realize that Square has lenders and stockholders that they have to answer to! If more people read the qualifications or requirements for being eligible for an offer the very last one says it all really besides the metrics! They are still lending every day worldwide but not everyone posts here about it. Good luck and hopefully soon for you!

[Twpchair]

It is hard trying to get how it was and how it is now. For those that don't jump on often or follow up with about a good year and a half now, it's not the same. The percentage on average is higher than previously and the amount of the loan. It's been averaging close to the previous offer or lower. Not for all of course as everyone is different. Of course, you see a few here and there in the '70s receive an offer the same who get a decent amount of an increase. The days of say me I could almost guarantee an offer between 70-75% like clockwork! The last few have been 91%, 84% 69% 88%. I didn't have any decrease all within 1-3k the same amount except 1 was 6 or 8k higher. Prior to these, my last offer was 32k. I am still on the average to surpass the last year's sales. The new norm is there is no new norm, unfortunately. I just tell people to keep processing daily and keep both returns and refunds to a minimum! Good luck to you and everyone waiting. 

[Oxbow]

I expect an offer between 75 and 80% not to must to ask

[Lynix123]

I asked this question before but I don’t think anyone answered! It might be helpful to others looking for same answer. 
For those who got an offer recently, did the offer come thru same time it usually updates or after the update? Thank you in advance! 

[Paulynne]

@Twpchair answered something similar and said it comes after the update. 

[Twpchair]

Thank you and at least for myself I update between 1-3 pm Eastern and offers are usually 7-10 pm was my latest I believe? Since the metrics at least. 

[ohboi]

I havent posted since my last loan drought because i had alot of catch up to do.  Let me give my update.  I was paid off on a loan for like 2 months with no offer, over the summer as of the end of May, June and July then one day got an offer.  Heres the kicker.  I paid 48% of that loan and then boom an offer double my last offer and the highest loan we ever got so what ever we thought we knew is definitely not the case. Ive had this loan now for 3 1/2 weeks and 15% paid off so ill come back to give more information as it comes. It really is random! 

[Twpchair]

Thank you so much for the update! You are 100% correct just when you think I have found a connection here you come! I have seen myself after a low offer after a drought or a long wait the algorithm seems to adjust the amount to match your income better. Of course not at but it does happen and I am so happy to hear this! Congratulations and keep on rocking!