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 

[ThePlantDealer]

So the waiting begins.... Hit 75% a week ago and now I'm currently at 77%. Last two loans came right at 75% this year and seeing other comments on here saying they don't get an offer until higher percentage is paid or loan is paid off is depressing. Business has been super slow in September and I could use a bit of a boost for new inventory. Finger crossed. 

[Hotbear1]

Square loans has become a joke have you guessing about a loan when you have been nothing but your best to them!!!!! Please don’t count on these loans you will find yourself in a hole depending on them!!!!!! They don’t care how fast you pay them back  customers doesn’t matter to them at all 

[Koleen1234]

Is anyone using clover? I know they offer loans

[MommaRavs]

I Have paid mine since July. Everthing looks good and still nothing. Had 7 loans with them and definitely needing funds for extra capital. So sad that square is doing this to us. 

[Healthyketo]

I’m on the same boat been paid off since June 28th everything good and still no offer! 

[Jjpainting]

Well I’m about to find out if pipe has any impact on square loans. Was just offere a loan with square  still no where where I wanted to be at but it’s better than the $6300 before. They offered $9700 (about 6% of yearly sales). I’ll keep everyone posted if it gets approved 

[Healthyketo]

Congrats! I hope you get approved! This is your second all within the time I’ve been waiting! 🙏🙏🙏 I hope I get one soon! 

[Jjpainting]

Approved in a few min as usual 😁. That was much needed with all my crap going on. 

[CTC18]

What percentage was your current loan at? I tried scrolling back but couldn’t find it.

[Jjpainting]

Sorry. Missed this response. I was at 74 or 75% paid back. But my processing  volume and frequency were way up. The average month I process about 12 payments, I had 26 or so processed by card during 30 days prior to this offer. But I was anticipating on an offer at a lower percentage than my last offer. The offer prior to this one came in at 91% paid off and that loan was $14,700 and the next offer was only $6300 with sales up 25-30%. The new offer was $9700 with about $1700 of it used to pay prior loan

[Twpchair]

Ugh, it's so hard to try and figure it out with offers I gave up! People ask me all the time do you think it will double? I said most go up 1-4k or down. I just don't see but 1 or 2 that get 20-30k but they used to get double that amount as well. 

[Healthyketo]

Mine was 11k down from last offer. It was literally like they had started me over as if it was my very first loan from them. Had been paid off for so long. 

[Twpchair]

Congrats! I  know not the amount you wanted but it was needed!

[MommaRavs]

What is a Pipe loan?

[Twpchair]

SMH, you are extremely puzzling to me. I don't know what it is. You can't tell me it is the algorithm after so long it's got to be something else. There have been a couple of people who were like you (one close to a year) and another 6-7 and they started emailing at the bottom of the loan page is the happy and frown face and they laid out what was going on. They read them because both got a reply and a Rep assigned to their account and there was a flag on their account. The rep stepped up and got them to drop off the red flag and back into the system and not hold me to it but I believe the one in 2-3 weeks got an offer much lower but paid off in a few months and boom another offer and larger. There has to be something somewhere you have no clue about that is caught up somewhere. I saw one guy post he was caught up over an EIN number! Apparently, they sent a message asking for it and something else to complete his last offer about 9 months ago, and he said he never received it or he would have sent it asap! That put up a flag. Once he called and did the bottom frown they reached out and showed him the message from months ago and he sent it in. A month later new offer came in. 

[Jjpainting]

Omg. I can’t believe that you still have not had an offer. I honestly forgot all about your situation and I just figured you out of all of us would have had an offer by now.  You were paid off a month before I got my last offer, and now I’m 70% paid off on that loan and here you are still with nothing.  Someone like you deserves an answer as to why there so called “algorithm” hasn’t given you an offer yet. Like I would ask if you violated their terms by doing like a cash advance or something, but that has no baring on an offer…anything that would violate any terms of theres, even unknowingly still gets offers I think. But there loan application would just be denied. And I’m sure you have reached out to them a million times hoping you get a lucky associate that can provide you some type of reasoning for not receiving an offer, but I honestly don’t think their associates know or could provide a reasoning for this.  You would think there would be a way for a human to do an override on their algorithm for instances like you who have had multiple loans and no offer after over three months.  I totally get that due to the massive amount of loans given out, it has to be done by computer, but there comes a point where if you are 100% paid off for this long, and unless business has been declining for the past couple years, there should be a way for them to do something or provide some type of reason for you.  I probably would have given up after one month and switched to clover or stripe by now lol. I remember during the time I was signing up with square a couple years ago. I actually created an account with all major card processing apps/sites. I wasn’t aware or even thought that they offered loans.  I was only looking at which one was the easiest for me to use and my customers to use when paying the invoices I send them. And the interface of squares was by far the best in my eyes. 

[Twpchair]

I agree 100% definitely caught up in the system somewhere. Most I've seen is over an email they didn't see asking for info like an EIN a bill in the business name or a bank statement in the business name or associated with it type thing. Unfortunately, if you didn't get it or thought it was junk and deleted it you don't know! You will have to do some hard digging to get to that human and you are right the call center is just that a call center! They have limited access to your information and here comes the script. It is getting to the right rep who will listen and patch you through. Anymore it's like every business I have to call smh. No answers, can't help you and rushed off the phone. I hang up and wait 30 minutes call the next one and repeat until someone will listen to me. Blue Cross and I have a love/hate relationship 😆 we go rounds now about every 4 months now. 

[B-dot]

Heads up, I just got a loan offer from Square.  74% paid, offer made at 11 pm.  It was for $1000 more than the previous loan offer.

I'm based on Canada, and Pipe is not an option here.  I used BizFund before.  Great service, they work with you.  Loan starts small, but top ups at 60% all the time.  I know not everyone gets approved, but they are very transparent....thought I would mention.

[BeeBraids]

Oh good! Congratulations you just gave so many people watching this thread hope!

[Twpchair]

Congratulations and thank you! There are some from Canada and England looking for companies like Pipe but more universal. Great to hear!

[maryanngregg]

Never had to wait past 80% paid before, until now. Used Square and only Square for the last 10 years. Not 1 dispute in those 10 years, never 1 chargeback in those 10 years. Have been green the entire time. This year Square has been down more than any other year, yet I still keep using only Square. 
I wish they looked at who helped them become who they are, and helped us out when it’s time to grow and expand, when it’s obvious by the numbers they see, processing our sales for us. 
The PayPal thing bothered me, as I want my customers to use whatever means they feel comfortable with. The new sale of *no employee kiosk* isn’t for me, as I want the interaction with my customers, to make their buying experience personal with my shop. I feel like Square isn’t personal anymore, and maybe it’s time for a change.