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.

[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 

[Twpchair]

No, you don't have to only if you use square payroll. Your full legal name that matches what the IRS has on file for taxes. And address on file. If you want one or get one it's easy and fast to do it online than update it with Square. The EIN vs SSN isn't holding you up any. It's been trending higher percentage paid back for most. Here and there a few 70s pop in. 

[ewing1]

How are things trending now. I'm at 65% and all green. Should I not get excited? Lol I could use some new inventory! 

[Jerrysbar]

We're at 88%, all green, and no offer

[ewing1]

Well, I guess I won't get excited then. There's got to be a better platform for us out there somewhere. 

[Jerrysbar]

My husband/business partner said we should just deny the loan offer, if & when we get one and just use the money that we pay into the loan (almost $1300 in 10 days) to stock up and save. It seems like Square doesn't care as much about small businesses anymore.

[Twpchair]

At rate, I would agree! You're almost doing a high percentage paid loan from some cash checking place downtown. Square has a great saving account and higher % than most banks and super easy to do. Even if you took half of it and put into savings and the rest into your account you are further ahead. That is what I do when I don't need the offer or I get one like last time at 68%! I don't take those because im losing over 30% of my new loan and if it's less than you're paying it off in 4 months or whatever. I  have a great lil credit union and a LOC I use for emergence. 

[Lakcontrola1]

I read that someone here had paid off there loan and got an offer for less then last time , I’m not sure if square is doing some changes or what’s going on .

[Twpchair]

It's not just square its all lenders right now. They have stockholders to answer to and numbers that need to show a profit. Square is still lending every day. Yes, you are correct my last 3-4 offers in about a year have been 1-2k less than the previous offer, then the same amount and the other two were 3-4k higher than my largest loan. I've been with Square for 12 years now. It's been a rough couple of years and we have all made it this far just hold on and let the market adjust, lenders to start letting that money flow again, and we can do this!

[Twpchair]

There are but definitely read their forums and reviews. All lenders have been holding tight lately till things calm down and hopefully soon things will mellow out and lenders will start getting back to normal! I looked at the names usually about every 3-to 4 months and the number of new people to square is crazy! They made big leaps in businesses.

[Twpchair]

My last few have 81%. 84% 91% (that one I took) and the last one 69%! I don't take or try to take anything under 85-90% I don't like giving up 30 plus % of my new offer on an old loan. That's just me though. Have I early on 100% if inventory was low or something was broken down I sure did. After 12 years with Square, I have a great little credit union and did a line of credit with them for emergencies now. Good luck and hopefully soon this board will light up!

[ewing1]

Hit 76% today! Still nothing. How are you doing? 

[Lakcontrola1]

I’m at 86% all green still nothing . 

[Twpchair]

Hopefully, soon! My last was 91% and then they jumped to 69%. I passed on that fast! Good luck! There's a lot of new ones rejoining if you could please keep us posted that would be great!

[Ann14]

I’m 66 I’m excited  lol just don’t know how long until 🙏😭😅

[Twpchair]

It's trending higher % on the whole but we are all different and process differently and my last was 69% and 2-3 prior was 91% so I never say never but I follow the trends. Good luck with yours!

[Twpchair]

It's been trending a higher % to paid off for the majority but a few 70s are popping in here and there lately. 

[NRVCards2]

Currently at 84% and having steady sales. Hoping for some help soon!

[Twpchair]

Good luck to you! Please keep us posted! There's a lot of people waiting around your range!

[Twpchair]

Hello, I was have been looking for you! How is going? Did the algorithm fairy hit yet?🙏 definitely agree to stress over a computer pick isn't good. I get it we all do but unfortunately, we have no clue or control over it. Stay on track and keep plugging along!

[Paulynne]

Best thing to do is keep selling. Don’t psych yourself out. The algorithm is alllllll over the place. 

[KICreative]

I've never been offered a loan while one is going. It's only ever been a few months after the previous has been paid off...