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.

[Twpchair]

No, I don't have mine, and since that appeared I've had 6/7 offers. For my little credit union with ID theft, I would have to 3-way call with a human to do it. It won't let 3rd parties access it. Others have lately and like others their offer was lower. But everyone is different and what's good for me might be the opposite for you. I have not heard anything bad about it or a negative impact at all. I guess imo why not give it a shot and see? I didn't go into the fine print about terms or access to account or accounts type thing. Good luck keep us posted if you don't mind especially if it does help. Others could really use that feedback!

[Paulynne]

I’m glad to see someone ask about connecting the bank. I was literally about to ask that question. I wondered if majority of everyone receiving an offer has connected their bank? And if you did, did it improve your loan offer or the speed in which you received it?

[Twpchair]

I don't and can't. With ID theft my account is locked and 2 steps of verification to get through. The only way is a 3-way call. I believe I've had 4/5 offers since then. All seemed normal as normal is now at least. 

[CANDIDHOME]

I did not connect my bank, and got one at 86%... It truly seems so random. 

[Creldredge]

Hi guys. Been reading through comments because of course I'm waiting on square to offer a new loan. Sitting at 85% and nothing yet. How do you know when they update for the day?

[HALEBOUND]

Has anyone gotten a new loan as of today's date 11-04-2024? I'm at 75% all in the green and no new offer yet. I've had about 5-7 loans so far (can't remember exact number). I was really hoping to stock up before xmas, but its not looking so good. Also,  wondering if the Election could impact new loan offers. 

[Kristencutshair]

When you guys receive an update does it say you've been approved for a new loan or anything specific? I'm sitting at 75% with all green markers.

[maryanngregg]

I’m wondering when it does update, with the time stamp and says *not eligible*, does a offer come later that day, or does the *not eligible* disappear for the daily update and a offer appears instead of update?

[Pecard81]

In my case it updates and later that day I get the loan offer but it’s not during the update.  That’s in my case.   Hope it helps 

[Kristencutshair]

But does it still say not eligible? or does it still say that and then it's just *surprise* loan offer. it's been awhile since I've used them and i'm realizing a lot has changed lol

[Pecard81]

It just “Surprise”!!

[Joeylee56]

What just happened to me a few days ago was that the “last updated” did not update for 48 hours. That should be an indicator that it’s incoming. Not always the case as they often have glitches, but if your loan status stops updating and your green and above 75% , it’s definitely more likely than not.

[Pecard81]

Is the 75% almost a 100% must now?

[Joeylee56]

Unless if you’re getting a ton of processing per day. 

[Pecard81]

I am at 67% all green as well 😳