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.

[nyallblacks]

Just offered a loan today. It's less than 50% of the previous offer. I think this is my 9th or 10th loan, and it hasn't been this low since covid.

[Twpchair]

Ugh, I am sorry 💔 unfortunately, that's been part of the trend lately or since last summer! 1. Either half 2. The same amount of previous loan and the least amount of people posting slightly higher. I know it stinks but it is hard not to take it personally it isn't just you or your business its just everything going on in the whole world right now and lenders are watching and holding tight. Hopefully, things will settle down soon, and we can get back to pre-covid days!!! I truly wish you the best! Thank you for posting also! It does help others reading this to know what's going on.

[Bamagirl251]

What percentage was you at if you don’t mind me asking 

[nyallblacks]

90%

[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]

Sending good vibes!! 

[Twpchair]

Ugh, I just was asking how it's going. I see as well as this site has been! Bugs and glitches! Have you tried to call and get past the call center? I know that there have been issues with updates, backend bugs, and maintenance. I  would hate to have you send it in and they didn't receive it. If they don't obtain it in X amount of time they assume you are done or don't want it and the loan offer goes away and back into the algorithm you go! Good luck and stay on it. 

[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 

[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!