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 

[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 

[Alexis321]

No. I just figured it was normal. I've never gotten a loan before paying a loan off. 

[Twpchair]

I never say never with an algorithm but imo not the traditional way it normally goes. After you establish a good 3-4 loans you should be rolling along here. 

[Twpchair]

Me too! 🤔🤔🤔

[Twpchair]

Ops see what I mean these just popped up after I sent you the reply. I have seen more and more lately vs 10-12 years ago posting loans 1-3/4 are bouncing, not going higher amounts like others, etc. Has it changed from years ago yes, it is different. I could almost like clockwork knowing I would receive an offer between 70-75%. That was 4 to 5 years ago. If my business was growing my offers did as well. Now, a good group of regular older users stick around and help out but more importantly watch the trends. This forum site has great users and they are not going to read you a script! This past year square has grown and more people switched to it. The volume and number of loans are up every quarter. Unfortunately, it's such a small % that post here so we don't always see it. I'm seeing a higher % paid back, the same offer as the prior 1st, 2nd offer lower (sales doubled) 3rd slightly higher than the last offer. Shareholders want to know what and where their money is. All lenders even banks and credit unions are holding onto the money tight. The market is up and staying pretty steady, interest rates didn't go up and those are all great things for lending. Hopefully, very soon things will open up!

[Twpchair]

Wow, that is crazy! I have been with Square since the day I opened and I have (yet) been fully paid off before I received one. My highest was 91% in August and the lowest I remember was 65 or 69% I would have to look again. It's early yet! 😆 and a rough week for me trying to post or comment here. I'm not sure if it was on my end or if everyone was experiencing it. Bugs, crashes, sit and spin, and it's trying to load and then crash, lost it all. Have you been with Square for a while now? Curious with this now. 

[brown17]

I habe been having major issues with square the past week or so...not receiving cuatoner messages. Customers paying invoices but it never goes through. I called square yeaterday and of course was told it was on my end even though its happening with multiple long time customers!   I hope they fix the issues this is a busy time for me 

[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.

[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.