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.

[CTC18]

Still waiting for an approval since the offer came in on Saturday. They requested more info on Monday evening, I sent it. They pushed it back today asking for something else. I just sent it. 🙏🏻 Send me all the prayers and good vibes that they have what they’re looking for. This dragging out for days is so stressful.

[Lakcontrola1]

How many % were you ? 

[Alexis321]

I've never received a loan before one was paid off. I wish they would!

[Lakcontrola1]

You only received 1 loan from them ? How long ago 

[Alexis321]

I've received 3 loans.

They've all been paid off for weeks before they offered a new one.

[ThePlantDealer]

Oh goodness. Have you ever reach out to the customer support and ask them why? I'm curious 

[Lakcontrola1]

Im on 83% right now 

[ThePlantDealer]

On 87% and still no offer. Guessing I probably won't get one until the loan is paid off haha maybe around 90% if I'm lucky according to other people's experiences 

[Twpchair]

Almost a year of upper 90s to pay off and now it's 2-3 people who pop in and post-70s and it throws everything off! Hopefully, the trend is getting better, and sooner offers for those who are waiting. Good luck!

[Jerrysbar]

I'm at 86% and still nothing. So aggravating!

[lvl10]

Im at 94% all green still waiting,  

[Twpchair]

Ugh, it's been a crazy month from 70-100% paid off! Pretty hard to try and get a feel for a trend. Fingers crossed soon!

[Twpchair]

Good luck! Hopefully soon!

[Jjbeautyco]

I just got approved at 76% previous loan paid and $5k more than last loan and that’s  with my service dollar amount as “needs work” after one day of being not in the thousands. So I’m pretty on a normalcy streak with the loans.  Idk if this is of any help or causes more frustration but I just wanted to update.  

[Twpchair]

Congratulations!!!!! You are one every week that pops in at the high 70s and receives an offer. Definitely, glad to see the increase of any kind! Congratulations again! 

[Ann14]

I’m at 64% 

[CTC18]

Still waiting on my approval. 😭 Still going back and forth with them daily providing information.

[Paulynne]

Update: I received a loan offer this morning at 95% paid off. It was only for $8k which is $22k less than my previous loan. I’m grateful none the less, and will work on getting this paid down quickly. A lot has happened with my business since I received my last loan, and we’ve had to adjust to a new way of doing things. So I’m not surprised the offer is so much lower, I just pray I can build my offers back up to where they were.