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]

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...

[Twpchair]

Wow, really? I guess in all my years I'll knock on wood! My highest was 91% and my lowest was 65%. 4/5 years ago like clockwork, I could almost quarantine 70-75% and an offer. Not so much anymore.

[Jerrysbar]

We've been in business 14 months and we're 88% paid on our third loan. We paid off the first one quickly, within a couple of months, the second one we were 75% paid off when we got an offer. 

[Twpchair]

Now, this isn't science here ok. With using an algorithm all we can do is come here and keep each other posted and follow the trends. For the majority, that's how it works. Of course, not everyone falls into the same category. We are all different, and process differently, and our economy is all different. After 18 months of good healthy growth with Square, you are building up a relationship and a pattern of processing and trends. Normally, your offer would be going up significantly, as long as all your metrics are growing along with it. A good strong healthy business that each year is doing better. I looked back at mine (12) years. 1st loan 1k 2nd loan 6k 3rd loan 16k. Again, different times also. On the whole not just you or me or our businesses but worldwide the countries haven't made a full recovery. Lenders watch closely and that's why it is tight right now. Good luck to you and hopefully soon!

[Llcdeliciass]

Do offers come in after updates daily ? 

[Bliss-B]

Since signing up to Square just a little over 4 months ago, I've been checking my metrics daily as I kinda like to look at it 😀

Yesterday, they completely disappeared and now it just says not eligible. I'm guessing this is not normal? 

Update. 

Apparently, even though we take between 10-20k a month through Square we don't qualify for the minimum loan amount according to support. 

[Twpchair]

My first loan was about 6-8th in I believe? It's been 12 years. It's not your volume, sales, etc, your kicking butt! You need to establish a relationship with Square and most importantly the algorithm has to establish a pattern or history of how you process is all. Nothing to do with you or anything like that is wrong. Do you swipe cards or online or invoices?

[Twpchair]

You will once you have established usually 6-8 mths some are closer to a year. It's not your volume it's breaking down how you process, daily or weekly, invoices vs swiping cards all-day every day. Are you staying with Square or have you jumped from POS to POS providers? All of this and so much more data goes into the system to provide you with the best loan offer. Obviously, with those numbers the traditional 1-3k loan would be silly. That's why they need a running calculation of how you process. The business 2 doors down it took them a year and 3 months with Clover for their first offer. Honestly, they haven't forgotten about you but that first loan isn't usually in a couple of months. It will come and most likely lower than you expected. That's fine accept it pay it off fast and they will keep rolling in. Good luck and keep up the kicking sales!

[Jerrysbar]

At 88% paid, we finally got an offer. It was half as much as last time, but we're ok with that, we'll pay it off quicker and still have enough to buy extra inventory. Fingers crossed for everyone still waiting. By the way, the offer came about 6 hours after the daily update.

[Twpchair]

Congratulations!! Thank you for the update! It does help others waiting!