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 

[olivesageeee]

Hi Twpchair! You helped me back when my loan was over 80% and I wasn’t getting anything, I ended up being offered at 88%! I’m currently at 67% paid off now, are we seeing earlier offer percentages these days? Last November I was offered my highest loan ever at 62%! Just wasn’t sure what it was looking like. 

[Parisbarnes]

What’s algorithm? What’s it for and what’s it mean? 

[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.

[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. 

[Twpchair]

This week has been pretty quiet so far but for the last 2 weeks, there was a good bunch who had offers. As far as the election goes without getting into political discussion here. If you read above I believe it is still posted at the very bottom about the loan section and factors. Square like any POS company that offers loans have to answer to stockholders. Elections do have or I should say do have impacts on the market, policies that would change, the economy all of that affects how all lenders will react even banks and all lenders. Until this is over all we can do is wait and see. If the market starts booming, that's a good sign, interest rates drop those are what they look at and look for! But, between now and January 20th we shall see if things start popping or if they hold tight for a bit. It's really been a rough time for a lot of businesses that got used to like Clockwork 70-75% and an offer. This has not been the case for a while now. It was trending 90% to paid off completely! These past few weeks I've been seeing upper 70s to low 80s more and more. It's hard hun honestly, we are all so different from each other, and some businesses are booming, and others are barely keeping their doors open, and all that comes into play. Good luck hopefully soon an offer will pop up!

[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”!!

[Twpchair]

The same I've never updated and instant offer. I update 1-3 pm and offer around 7-10 pm usually.

[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. 

[Twpchair]

That long long trend of 90% to completely paid off so I would say. However, in the last few weeks I've seen a good group of upper-70s-80s who received offers. 2 I believe in the 60s. Now they were processing high volumes and big numbers and no disputes no returns. Hopefully, they didn't jinx the rest of us! 😆 good luck and keep us posted! Posting your experience it helps us to see a trend until someone else besides myself figures out how to crack that code in the algorithm! 😆