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.

[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.

[Twpchair]

Not to get too personal but is this information that has been provided before? I know many started with like a DBA or SSN and then got an EIN or became an LLC and needed to update information. You're not alone I've seen 5 or 6 other people as well and some 1 day and done. Others nope, 1 item at a time to upload! 

[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. 

[Twpchair]

Yes! I am so happy to hear this! We have a sale going on Friday -Sunday  and kid events, food trucks and so busy I couldn’t get on! Hopefully, you follow the trend of lower than back up again! Congrats and thanks for letting us know! 

[Paulynne]

Oh that’s great! I need advice from you on holding store events. You seem to be great at it. And yeah, I’m sure it will go back up. 

[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.

[ThePlantDealer]

Well I got an offer at 97% today.... The loan itself was half less though even though my business grew this year. Strange. This time it's not instant deposit either- had to fill out the information and they'll review it. 

[Jjbeautyco]

Yeah it’s a lot more steps than ever before.    I never had to upload photo and fill the forms out. Very strange.  I’ve always had instant approval and deposit best day.   

[Twpchair]

That's probably why if they never had it file it sounds like they are updating their systems. I did last year's DL and EIN in the morning and at about 2cl pm money was there. After 12 years that was the first asked that I can remember. 

[Llcdeliciass]

What information are they asking for now strange new update for loans probably?

[Jjbeautyco]

I had to upload picture of license and second form of id,  enter name and address and banking info 

[Twpchair]

Most are basic information, ID, or EIN nothing earth-shattering sounds more like making sure the system is updated is all. Most are asked for information and within 10 minutes or the next day deposit is there.