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]

Mine was way after the update. I update between 1-4pm and I got an offer at 8pm on a Friday night 

[Breathlessovnm]

We have been with square for many years and have had 16 loans with them. This issues the longest we had to wait we are at 81% paid off and owe less than 2700$ and nothing has shown up. We checked to see if our offers are usually on certain days and they have been any day of the week over the years. We have no clue what the metrics are anymore and are hoping to get something at some point. Congrats to all who have gotten an offer and keep your spirits up if you haven’t gotten one yet 

[Oxbow]

Im in the same boat!!!! 85% paid bal 2600

[Twpchair]

Good luck! It's been bouncing lately from completely paid off to the high 70s. Its like wheel of fortune on where and who it lands on I swear! Thank you for the update! It does help others. 

[Oxbow]

Been with square 8 years, 10 loans all paid early, all items green on dash bal due 2600 on an 18k loan, 85% paid, usually recieve an offer at 70 to 75%, and nothing! May have to expand my thoughts to another program / processor soon

[Twpchair]

It's been about a year and a half since the norm became not-so-normal. I'm a firm believer in you and only you know what is best for your business but it's not just square. Most lenders are holding tight still lending but not what we are used to. I don't work for Square but I do jump in here and lend some advice or encouragement. I also jump on other sites like ours and read the reviews and they are all asking the same thing. Reddit is full of questions as well over loans. Good luck to you and I hope you get an offer soon or make the best decision for your business!

[Breathlessovnm]

We just received an offer at 82% paid back. The offer was 3000 less than the previous loan and the repayment is lower now at 17.5 % versus 20%. We updated at 3:22pm and got the offer at 9pm.  Good luck to all ! There is hope hang in there 

[Paulynne]

Congratulations 🎊🎉

[Twpchair]

Congratulations! I'm sorry it's lower than the last one. Hopefully, it will help though! Thank you for the update!

[Lynix123]

We are paid off 86% of the current loan but there is no offer yet. Normally it updates 12-2pm but lately getting updated later like 3-4pm, can it be a good sign? Have you guys notice the change in update time before approval? 
Thank you in advance 

[CTC18]

Mine has also been updating later about the last week.

[Paulynne]

My account has also been updating later around 4:00. 

[Twpchair]

I've had mine go blank a couple of times. I'm not sure if it meant anything or just random. But I usually like clockwork when I update. The lag could be due to a big technical issue on October 26th that shut down just about everything for parts of the United States from couldn't process, to the tools you use for inventory to online sales and keeping them from orders to billing. I know I received multiple text messages but I was fine in Michigan as far as everything working. I am lagging as well. My deposit at 5 pm is the only thing right on time!

[Paulynne]

91% paid all green! 🤞🏾If I get this loan, it will be the greatest thing that has happened to my business to date. 

[Twpchair]

91% was one of my lucky percentages and a bigger offer!!! Here is hoping 🙏 the same for you! Also, thank you for sticking around and helping others along the way! Imo these forums are our best way to keep each other informed by just sharing our updates, frustration, and how business is going. None of us work for Square but I think we do a little better than the same script over and over. Thank you and everyone else who just shares their experiences. 

[Paulynne]

Yesssss to 91% being lucky 🙏🏾🙏🏾🙏🏾

[Paulynne]

I agree. Having somewhere to talk with people who are in your same situation, helps A LOT!

[Pecard81]

I am at 65% so I am probably light years away 🤣 5 months into to previous loan and all green.   I’ll let you all know 

[Paulynne]

You never know. Some people are seeing it in the 70’s again. 

[Twpchair]

This past month or so I have noticed more than the whole past year or at least the ones posted here. This past summer was high to paid off for a lot of people. I went from 91% my highest ever to the next one 69% 

[Twpchair]

Definitely do, please! 5 months and 65% paid off is pretty good when you break it down. When the market continued to stay steady, they lowered the interest rates. Those are what shareholders want to see! Get a few other things in order and we might be able to get back to the old days. I know that we lost a lot of small businesses over the last few years but WE are still here plugging along and big box is downsizing or closing up! Those customers aren't going to stop eating out, shopping, or building. Imo small businesses took a huge job during COVID and shut us right down while big boxes made record numbers! It's time for us to get out there and kick it in and up! Good luck with your loan and hopefully you will get an offer soon!