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]

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!

[Souloutcafe]

I’m so happy for you praying I’m next when do they update?

[Mansellmc]

I would like to know this too! 

[Tori_tora]

Hi all! I’ve been lurking on this thread for months. Just wanted to share I finally got an offer today at 85% !!! My last loan was 13,600 and this one was 10,350. Disappointed it was less but so thankful for it either way. Don’t give up hope ❤️❤️

oh and it came in around 8am. Approved in less than 10 minutes

[Twpchair]

Congratulations! And thank you so much for sharing this! It truly helps others to see what % a little lower ect. Very happy for you and congrats again!

[Ann14]

Hello everyone I’m at 68 and just got an offer for 58,700 I this is my 6th loan . My last one was 40,000 but since I moved location sales been great . 

[ReptileLyfe]

Good to hear! What's your revenue looking like to get 40-50k offers if you don't mind me asking?

[Ann14]

About 50-60k a month 

no worries I been opened for a little over 2 years now with square . …. Food industry 

[ReptileLyfe]

Ok so you're about double with loans about double. we've been between 25-35k monthly. About 2 years ago my cousin said he gets 100k offers and I thought I once read 'up to 30%' of yearly sales but my offers are far from that!

[Twpchair]

Congratulations!!!!! You are one of rare ones! One in thousand! Great to hear and hopefully you will bring good luck to everyone else! Also, great job on the increase in sales. Great year for you!

[Ann14]

 Wanted to update you guys 🙌🏻🥹

[Goldiesflowers]

Just got an offer at 88%, 8k less than my last one, but will help nevertheless! 🙏🏻

[ReptileLyfe]

Have you ever NOT taken the first offer but waited until it updates again? In the past, I didn't accept the first offer and every 2 weeks a new offer came in. Although I'd like to think the offer amount would increase (more of our loan is paid and we owe less than 2 weeks prior), in the past the offers seem to decrease every time. I'm assuming it also goes by recent sales and processing. I'm currently being offered 26,600 but I think I am going to wait and see if it'll go up before I accept anything. Just checking how it is for others.