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 · 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 

[Oxbow]

1 dispute in 8 years 3 years ago, all green 85% paid at 7 months no offer frustrated for sure

[ReptileLyfe]

Did you get a new offer yet? Just curious, how much was your last loan amount? I'm at 76% today and no offer yet. I've had 4 or 5 loans total and have gotten an offer between 67-76% and once at 88% repaid but they never offer very much. My highest loan was 23k and we do over 300k/year in sales 😕

[Twpchair]

Your offers are most likely due to the number of loans you have. Nothing to do with you and great processing btw. For the first few loans, the algorithm is still trying to determine how you process, new vs return customers and, the overall health of your business, etc. Mine didn't start going up until after the 6-7th loan and over a year or so with Square. If you are paying them back in say 1/2 the time then Square is offering you too low of a loan and vice versa if they offered 60k and barely made it or dragged it full-time then it was too high. The system has to find its happy medium. 

[Pmbuf]

Do you know when they typically approve you for another loan? I’m at 70% now. Just trying to plan!

[Twpchair]

Right now upper 70s-80s most not all are stating. For about a year it was the upper 90s to paid off completely! It has been coming down for the % for a lot of people posting the last 2 months. Good luck and keep plugging away!

[Mikelike26]

I have done everything that I was supposed to do on my current loan and I still haven't got a new loan offer I'm at 83% and my loan is paid way down and usually I have gotten I a new loan offer by now

[Minion]

Hi @Mikelike26 

You are on your way to paying git off.  You can check out this thread here for the latest and "trending" so to speak % that to her users are seeing offers at.  Keep processing sales and you'll have that paid off before you know it!

[Stacelyn24]

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.

[kyablonowski]

Hello, I am in the same boat as you. I’ve paid my loan which was $33,000. I’ve paid 77% plus. My sales have been great. I am a small operation and I use these funds every time to grow and sustain during this slower summer months. I’ve been with Square over 10 years. My last loan they offered me a new loan and only 52% or something like that. I thought for sure once I got to 75% on this new one I get a new offer and for some reason, I haven’t seen it yet and it’s very frustrating and disappointing. I hope they come through soon.

[Twpchair]

I know it is frustrating and hard to plan for purchasing or repairs anything else you need to continue to operate and grow. The plus if you can hold tight is that the new offer you will get more and more of as the % goes up! Compared to 52% rolling over half and losing half of your offer you get more and more! Good luck and keep plugging along! I truly wish you the best! Been there done that! I stopped trying to crack the algorithm and followed up with the trends going on. Easier and more reliable.

[Oxbow]

Im at 86% paid, all green, longest Ive ever waited in 8 years

[Twpchair]

12 years and my longest was Aug/September at 91%! That one I took! I hate to roll over a ton of old money that eats into my new loan and I tend to stay away unless it is a dire type of thing. I do have a LOC with my credit union for emergencies as well. But I took the 91% larger increase, the fee was ok, and the rate was pretty good and fast and done. Then out of the blue at 69% no joke here comes the next offer of less money and a higher % 😆 yeah, passed on that one. I process or swipe all day every day from 8.00 dollars to 3-4k transactions being a retail furniture store. But these offers have trended higher all summer September and early October. Recently a good handful of 70s-80s popped up. Now, it's been a little slower. We will see soon if the lenders start picking up and offers start rolling out faster. Good luck!

[Twpchair]

I was hoping to see you received an offer! August was my highest % 91%!!!! Then they came back fast at 69% smh. I passed on that! This is our busiest time as well. I won't roll over 31% of an old loan to a new one and lose that much from the new one. Good luck I am pulling for you!

[Parisbarnes]

Last question. Do you know if the loan offer come at certain times and or days? If so what’s been your experience? 

[Alexis321]

I'm paid off for a week now and no new offer despite a jump in sales and processing. Not sure how they determine who and when gets loans. It's a bit daunting. I'm going into my busy season and could use a boost 🤷‍♀️

[Twpchair]

Unfortunately, they use an algorithm to do their picking, and when it does, unfortunately. The big plus is your processing more and hitting the busy season. Hopefully, that will trigger it. Good luck and keep us posted. 

[Twpchair]

Please, understand it’s not just you ok. It’s hard when there are millions of users worldwide who are asking the same questions. It’s all when that algorithm picks you off. I have been seeing a lot more upper 70s and 80s lately compared to a good year of the 90s to completely paid off. Keep processing as much as you possibly can and see if that triggers the system. Good luck!

[Mmccrain]

What percentage was everyone at on their very first loan when they got their second loan offer. I’m seeing 6th+ loan offers but I’m talking about the very first loan percentage when the second offer came in. I’ll be at 60% on my very first loan of ($1600) by the end of today after 35 days of repayment. I’ve had 800% growth and hoping for a new loan offer today.  

[Minion]

Hi @Mmccrain 

From every loan based thread I have seen, and being the first one, looking a when a second offer could come in it honestly seems to trend even higher than people with their 3,4,5 etc loans with offers coming in around the 80%+ offers.  Being only at 60% I wouldn't expect an offer to be in sight for until you reach maybe the 85%+ mark in all honesty. 

Every business is different so its hard to exactly say.  But you could also be one of the few unicorns that an offers gets sent over earlier than the "norm".

.

[Twpchair]

Well, after 12 years you made me go there 😆 and start scrolling! I have to agree with @Minion (like always) the best I could figure out that was different times and we are all different. My first was 1k and paid back quickly also. My 2nd without metrics to help now I would say I was close to 90% give or take a few % points. You're just establishing a relationship with Square and just as important a pattern of your business pattern or activity. At 800% growth that's amazing and I normally see people myself included if I remember correctly it was about 9 months to a year before that I started to receive offers like clockwork between 70-75%. Each again then growing and growing in increasing. Right now things have been different with lenders and they have been holding pretty tight. It was trending for some time now upper 90s to pay off completely! Recently there was a good group of people (longer customers) seeing 70s-80s percentages. Not all of course everyone is different and processes differently. These forums for Square are awesome and so much information and a lot of great people who will help anytime! We truly are the best way to share information or our experiences to help others. Good luck and welcome!

[Parisbarnes]

So question. My loan says paid off 21,350 & I owe 8,700. 

im paid off at 70-% sales are real good. My question is should I make a payment of 2k to help get another loan. I normally get a new offer at 68% but im unsure. Helppp lol