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]

I understand your frustration I really do! I see it every day and it's rough. I'm 12 years going on 13 years in November. This started scaling back last summer and I don't work for Square at all! I watched the trends and then started digging around and helping others with just information about trends. I jumped on every public forum like this one and Reddit that offered loans and all said the exact same no joke. Half were switching to square they were done with Clover or whatever pos they were using. The new section in the eligibility page is key right now. Unfortunately, the economy isn't great, we have an unstable country and world right currently. The big one right now and I am not talking politics or going there but we have an election and it will determine 2 different types of the way this country will go. Lenders are tightened up and have been. Unfortunately, we feel it as well. Best of luck to you truly and hopefully soon an offer and get this rolling again!

[BeeBraids]

Just got the confirmation email from pipe about my approval and successful acct link, should be deposited in 1-2 business days it says. Still nothing from square I’m at 79% with no offer… all green metrics and early payoffs… I’ll update with squares offer whenever I get it. 

[Sj1976]

Congrats! Could be a while with square. I paid off in August (my 3rd loan) and still have nothing. All green metrics all the time. No offer. Filled out surveys, sent emails with generic responses and nothing. I’ve applied with pipe. 

[BeeBraids]

Oh man I really hope not… and hopefully your process with pipe is easier and more helpful than square has been… 

[Twpchair]

The surveys are great make sure you leave your telephone number first! Also under the loan part scroll to the very bottom of it to the happy and frown part! If you haven't already, fill it out and leave again your number! You can copy and keep posting it after you update or the next day! I see more people here at least that get a human call them back later that day or the next. The number didn't show up as a square but an 866 or 800 number so, unfortunately, you have to answer them. I have them all blocked right now 😆 good luck and hopefully, it helps!

[TrendzbyM]

I applied for pipe just out of curiosity and after 3 weeks of trying to get a hold of someone , I finally synced square on there and they said I have no offers. Not sure it's because I have an existing loan with square? 

[Jjpainting]

I think most of us that pipe approved had existing loans with square. Mine was around 35% paid at the time of application with them.  Healrhyketo I know was paid off but most others had loans with square. 

[TrendzbyM]

I'm surprised I didn't get an approval then. Discouraging as it seems to be easy to get an approval 

[Jjpainting]

Oh I emailed and tried calling.  No one answered. Didn’t leave a message. But got a call back within an hour or so

[Twpchair]

Hello, I hope you don't mind I tagged you in a post with someone who is stating I believe when I read it again it's close to a week, and pipe hasn't pulled a payment yet! I told her to call asap! I have not applied or used them ever. I have looked at their reviews, other users on different platforms, and the terms of conditions. Most complaints were about the inconsistency of withdrawals. We are used to nightly like clockwork and it doesn't seem to be like that always, especially the first withdrawal. The others were weekends were iffy and definitely not holidays. I believe you were one of the first if not the first and might have better information about it than me saying to call asap today Friday before you get into another week if I read it right. Thank you so much for your help and support for others on here!

[Twpchair]

Going off of others it was almost an instant approval a few weeks ago but now 1-2 days. I'm sure or guessing a lot of users are now applying. I have only seen one person say they were turned down. They didn't state why or if Pipe stated why. It could have been as simple as not being able to verify the account who knows? Good luck and be patient it appears not much happens on the weekends and Monday is a Holiday. Good luck to you!

[Pecard81]

How long from when you signed up did you get offer? I just synced my square to them.  I am at 70% in just 5 months with square.  It’s my 7-8 loan with them 

[PerroneTech]

It doesn't send an offer right away. It takes a few days with them. Don't count on it coming fast. Once you get an offer and are approved, someone will reach out to you via email. Then you have to change your bank to one they set up for you, and you have to wait for Square to verify the account. Once verified they then wait for a payment to process. My payments don't get sent out automatically so I sent a small payment to them. Once the payment is sent, they send it back, and the payout is sent to you. Takes about 1-2 business days.

Expect about 2 weeks for the whole process. My first offer was small, but I took it to establish history. I was at 80% paid off with my loan at the time of being approved. I don't think Square even knows. It just shows up as a deposit, like any other ACH payment.

[Sj1976]

So I had applied to pipe and was in the waiting period of verification of their bank acct through square when my square offer arrived. I took the offer from square and canceled the verification with the pipe bank account. I keep checking the pipe overview page to see if anything changed or if it says anything different than waiting on Verification. Do you suppose it will just disappear after the offer expires? I wouldn’t mind taking that loan as well, but wonder how it would affect my payout with my square loan if I am verifying a different bank account. Does that make sense? 

[yoyobanhkhot202]

Hi everyone,

i got money from Pipe last week. But I don’t know how to make daily payment to Pipe. Someone please tell me the way. Thanks so much.

[Twpchair]

Let me tag in a user who has provided great insight. @Jjpainting arent you the one who received the first or 2nd Pipe loan? If im not mistaken you had a slight issue with 1-3 days where they didn't take out the payment every night like square and Boom took out or wanted multiple days at one time? I apologize if it wasn't you. If not hopefully the right poster will pop in. 

[Twpchair]

1. You might want to call soon and make sure they are taking it daily and not 3 or 4 days at a time! I don't have it and never used it. But others stated at first it's not pulling out daily like Square and boom 3-4 days later of busy day a big chunk was due. I'm not sure if it was just the whole first processing hiccup or if it has continued. I have only seen others state the first withdrawal and if they don't take it call and ask about weekends and holidays! Good luck and please 🙏 keep us posted as have this thread lately has been approved!

[yoyobanhkhot202]

Thanks

[Twpchair]

You're welcome! Did you get it all straight? 

[Twpchair]

@Jjpainting YOYO scroll up and see the other's comments from users about Pipe and payments. They have different experiences and it might help you much better. Good luck!

[Sj1976]

Did you figure out the payment process? Update please!