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.

[CTC18]

Thank you so much. Typically it was always in my account within a few hours but last time it stretched out over a week of sending paperwork back and forth. My anxiety can’t take that this time. 😮‍💨 Sending good vibes your way as well! The holidays are most businesses busiest season but we need the capital to get the inventory to make the sales. 🙏🏻

[Twpchair]

You got this!!!! Hopefully, all they needed you sent in the last time, and good to go!!!  Good 🌟 luck and keep us posted please 🙏 

[lvl10]

Im at 93% all green 9 loan no offer anybody got one lately very frustrating as everyone. 

[Twpchair]

Today a few but here at least it has been pretty slow this week. I hope 3 in one day is a great thing!

[Jjbeautyco]

Hey all. I’m about at that point where I get another offer..73% but it says my bank account was disconnected and to reconnect.   I tried but kept saying error … has anyone received an offer without their bank connected??  I called the squareloan phone number and they hung up 2x.   Any help would be great.  Thank you 

[CTC18]

I do not have my bank account connected and I got an offer at 73% today.

[Ann14]

Congratulations 👏 yay I don’t think I have to connect it then .

[Twpchair]

I don't either. The majority I see here only don't as well 

[Paulynne]

I called and asked about the bank. They said it does not affect your eligibility, it helps them improve the amount of the offer. I have had 15 loans with Square and did try connecting this time to see if it would help, but it didn’t. I disconnected it, but although they said disconnecting was fine, I think it could be holding me back. I’m 93% paid off and haven’t gotten an offer. Most people on this forum have gotten loans without connecting. 

[Twpchair]

I thought 91% was going to be our lucky number???? I've been watching every day for you! Good luck today!

[Paulynne]

Me too…me too. Guess I’ll keep selling and waiting. 

[Twpchair]

Unfortunately, I don't work for Square because I would be up here you get a loan, you get a loan, and everybody 80% and all green you get a loan! I can usually follow the trends and you've seen all summer until recently it's been a higher % to paid off. There's always a few here and there that pop in around the 70s. About October it has been bouncing around from the low 70s to the high 90s?? Not very consistent at all. Good luck and you are correct all we can do is keep swiping away. 

[Twpchair]

Any news yet? It's been crazy at work and part of our busiest season. May to January is our time. What line of business are you in?

[Twpchair]

The majority here post do not have it connected. On the whole im not sure? Good data there would help businesses make a better informed decision..

[maryanngregg]

When the acct updates daily, and it says *not eligible* has anyone ever got an offer hours later? Same day they say not eligible? 

[Paulynne]

Most are hours later. 

[Twpchair]

Every offer of mine usually comes around 7-10 pm. I update around 1-3 pm. I have not seen and offered an update yet. A few thought that but the offer was the night before and they just saw it when they checked their updated metrics 

[nyallblacks]

At 90% all green...hoping they don't drag the renewal offer out too much longer

[Twpchair]

Good luck to you! Hopefully, one comes through soon! There are a few on here now in the 90s waiting as well! Let tomorrow be the day!

[Twpchair]

Let's see this boom! It's always hard when it soars but oil is booming today and the stronger the market the better for us all in many ways from businesses to lenders! @VanKalkerFarms thank you again for keeping us posted!

[VanKalkerFarms]

Here we are on Nov 8, the day after Square's third quarter financial reports and yet again Square Loans has GROWN more.  In the third
quarter of 2024, Square Loans facilitated approximately 136,000 loans totaling $1.38 billion in originations, up 18% year over year.

These are just some amazing numbers.  $15,333,333.33 loaned out on average per day.  1,511 loans averaged per day.  
That's an average of one $10,150 Loan every 57 seconds all day every day for 90 days straight.

I understand those posting here want more loans or not seeing them as fast as before, I post the publicly available numbers so you can see that EVERY day more than 1,500 loans happen and maybe 2 of those people report that here a week, the other 10, 480 people that do get them a week just go on with their day and probably don't even know this forum exists.

So for 2024 Square in just the first Three Quarters of the year has loaned a total of 4.15 Billion to over 50,700 businesses.

@Twpchair