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 · 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]

only seen Pipe. I could have missed some others posting different ones. I have a small credit union and on top of that, I had ID theft really bad last Feb so my bank besides the regular routine put a password and 7-digit code on my account. Even for me to attach my account to try for a larger loan that pops up would take a 3-way call. I can't do auto payments anymore nothing. So me trying pipe was already a no-go! I have a line of credit with my credit union and love it! That is pretty much what pipe is taking 10% of daily sales and once you reach a certain percentage ask if you want to top off. When it asks or sends you back a response like you have to be with Square or Stripe and of course you are. Do you have any numbers to call for customer service? Give me one second! (866) 567-5106 This is the main number that most users are saying is the best to reach them. I'm not sure if you have tried calling them. Also, on Reddit, I just saw a trend of a big glitch on their end (pipes) that affected recent apps, apps in the process, and some with automatic payments getting or I should say not taken out. They were asking people who recently applied or haven't updated with a call from a Representative for more information or general questions to call in and verify your application is even in their system. Hopefully, something will kick in this weekend for you! I am seeing more and more pop-in with offers so that's good! It was dry for a week or longer then boom 1 jumped in. Good luck to you all! 

[CANDIDHOME]

Just got an offer at 86% paid on a 65k loan. That was my 9th square loan in 6 yrs…New offer is for 42k. Lower but still happy to get something! My sales have been 18% down for the year so far so not surprised…

[Twpchair]

Congratulations! Thank you for sharing with others. Hopefully, this helps and sales will pick up! It's been rough for certain businesses and others soaring along!

[Joeylee56]

Question for anyone with recent experience in receiving a new loan offer. I just had 2 clients make a $1500.00 and a $300 payment yesterday morning that put my loan percentage up to 88%. I was expecting the usual loan update around 4pm, but it hasn’t updated since the day before yesterday at 4pm. Would you think system glitch, or might they be getting something together for me? Anyone have the same experience? TIA

[Twpchair]

That's the million-dollar question! There have been systems going down and October 26th was a big one! It stopped processing, cash registers, and everything that helped daily functions like QuickBooks to transfer sales. Just about everyone on here was lagging in updates. It's getting back to normal slowly but a few are still a couple of hours behind. Now, part 2 myself personal 2x in 12 years with Square, and since the loan metrics began I ghosted so to say 1 or early day 2 where I couldn't see my metrics or loan circle. 2 pm updated like normal, and that night I received an offer. Coincidentally or was there something going on in the background??? I do not know. I have heard others state the same, yep, the offer came in, and others nothing but finally updated! Good luck and definitely keep us posted on this!

[nyallblacks]

I'm sitting at 87%. I was expecting a offer after a strong weekend, but it didn't happen. At this point I'll just play the waiting game. If I'm able to sustain without it, I'm not sure if I'll take another one. Pipe never gave me an offer, and I've been connected to their system since it was first mentioned on this board. I sent a letter to them today to disconnect and close my account.

[Twpchair]

I hope 🙏 you get an offer soon! Honestly, unless I missed any? I haven't seen anyone say they didn't get with them that's pipe I mean. I saw one say that they were denied but that was almost instantly. I wonder and im just guessing I've never used them or heard of them until a month or so ago if they are overwhelmed with new customers right now? I know not just here but other forums blew up with it. Did they respond to your email? If not im wondering if maybe it just didn't go through? Would it hurt or impact your credit to apply again? I'm sorry I don't know much about them and don't mean to get to personal. I just hate to see a small business struggle and weigh options of closing. I truly wish you the best! Come on square let's kick it in!

[nyallblacks]

Pipe has not responded to my email. I actually had called 3 weeks before I sent the email for them to disconnect the account. They never did. I was surprised I was even able to get anyone on the phone. 

They initially denied me, but kept the account hooked to my Square Checking for future offer eligibility. You not able to just re-apply. 

[Luly255]

Can I ask. What is Pipe?

[StephhhG]

I’ve been following for quite some time now but have never commented till now…. I am currently on my 5th loan with square… my 1st thru 3rd loans all came around… 60 to 62% paid… my 4th came in at 73% paid and this last one that I just got this past Saturday was 89% and was $3000 less that my 4th… none the less very thankful since its my slower season… but I’m most definitely noticing higher paid off and lower loan amounts…. Hopefully I’ll pay this one off fairly quickly….  I do want to say, even though we’re anxiously waiting for the loan invites to pop up…. It may not come when we expect it but it will definitely come when it most definitely needed… Stay positive everyone…. Will update when I get further along in my new loan

[Twpchair]

Thank you for your first post! Please feel free to jump in and share your experience with Square loans and the details. It does help others who are looking and waiting! Although we are all different and process differently you can see a trend for a good majority (not all). Thank you for sharing!

[Joeylee56]

I actually did receive an offer yesterday night. Way lower, about 50 percent less, but I think part of that was my own doing. I do events for a university here in Louisiana. They are a Net30, so it takes a little while to get invoices paid through them. They have e-payable's for third party vendors, where they load the balance for us to swipe as a non physical card. Problem was they were paying in batches, and instead of individually swiping for each event, about 64 over this past year, I combined them in to probably about 20 swipes. I feel as this has greatly affected my offer, due to the drop in daily processing. Please don’t make my mistake! But yes, the fact that it didn’t update for 48 hours after the previous days should mean that you have a loan offer incoming.

[maryanngregg]

Congratulations! 
I am realizing there is no method to the madness, it’s a crapshoot. 
I just saw in another group, someone got a new offer at only 52.% paid. 
Where I live, more people are using cash instead of card and I think it’s time to find a processor who looks out for me, my business and my future, that I can count on when, I, need them. 
Congrats again!! Have a great weekend! 

[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.

[Ann14]

Do you have to be connected to your bank to receive an offer ? I’m at 59% on my 5th loan and it’s asking if I want to connect . 

Updated a bit late today  10pm 

[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?

[Twpchair]

It should have a timestamp once it's done updating like last updated at 3:02 today. Right under your metrics before you click to open it and see each section.