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 

[Twpchair]

Lately it’s been a roll of the dice but I would say mostly have trended lower and lower and then they accepted it. Paid it back quickly roughly 4/6 mths later than the offer went up not huge amounts like 4/5 years ago but 3-5k or so for the most part. I follow the trend for about a year and a half now and it has been trending higher % paid back to completely paid off and lower offers or close to the same. Not all of course but on the whole. Now, I will say around the 1st part of  October even until now each week I’m seeing more and more 70s pop up still a little less offer but as things mellow out more and more each day the lenders will relax and open that cash! 

[Twpchair]

Congratulations!!! I know it hasn't been lately what we wanted or expected. I am happy you did get an offer though and every bit helps! Congratulations again!

[Mansellmc]

My last offer came in at 67% and was 8k higher than the time before. I'm currently sitting at 77%, all green and nothing. I really needed an offer before Thanksgiving so I could finish up my dog boarding/Daycare project. It will be a really good cash flow opportunity if I can ever get it completed.  Now, I'm just hoping to get an offer in the next few days so I would have time to complete before Christmas. I'm losing money by not getting it ready. I understand how this loan thing works but an algorithm has no clue what a business really needs. It only sees numbers. There is more to a business than numbers. And that's a bit sad. It takes the communication out of the whole process.  And for all the repeated scripts that you get in an email that says there is not a way to override the system, I don't believe that. Every computer system has an override and a person to push that button. I'm a bit frustrated and disappointed because there is so much I could get done for my business at this very moment if an offer would just come through. But, at the same time, I shouldn't expect one to come through, it's not like Square has to give me a loan.  But my relationship with their computer system has been good overall, I guess. 

I read somewhere in the thread that there is a time of day that the system updates for loan offers. Is that true, and if so, when? I'm also still perturbed over the Plaid. You can use Plaid to log in to your business banking account for Square so that they can get a better look at your deposit activity. Cash and checks. Which in turn could help you get better loan offers. Problem is that my bank does not allow connection to Plaid because of security measures. With that being said, it's not fair for Square to only offer a platform that only benefits some people. They should also offer an alternative for those who cannot use Plaid at no fault of their own. My revenue is much higher than what Square sees. I have many clients who pay cash and check. 

I think I am done venting, for the moment anyway. 

[Twpchair]

Ugh, I feel you on so many levels! Unfortunately, I am going to be as honest as possible about it. 1. Since last summer it’s been trending much higher % paid back to completely paid off for the majority not all of course. Here and there a few low 70s pop in. 2. Again, not everyone but most are getting lower offers or around the same. A handful of people who at least come here said they got 3k higher than the previous offer. I also, can’t connect my bank and this year more than ever before is more cash vs cards. But my credit union isn’t changing their rules for me and it’s due to security issues. I’m fine with that then let people upload 3 months of bank statements or what ever! Rumors floated a couple of years ago about getting rid of the algorithm and going to a line of credit and then they could evaluate it every 4 or 6 months and adjust it. That was a rumor. I was lucky 4/5 years ago I went to my small little credit union and in about 3 hrs from start to finish got a line of credit with them and I don’t touch it but for emergency or deals I can’t pass on. I’ve been with square for 12 years and we all got so use to 4/5 years ago like clockwork I had an offer around 75-78% paid off. Now this year I have been 91% 84% 86% and my last one no kidding 69%!!!! You are right though this forum has been a curse and a blessing because each of us sharing our information is more insight than a script. You see there story, their offers etc. and you can follow the trend. I hope that good ole algorithm picks you off soon and you can get to building and kick some butt! Good luck to you really and please keep us posted. 

[Mansellmc]

I hit 78% today. And I was wondering. I started paying my minimum due which will be paid way before the due date Have offers come in while someone is mid minimum due? Make sense?

[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. 

[Mansellmc]

That’s all really good to know. I’m a storefront dog groomer with employees. I’ve had 1 refund in 12 years because a lady added an extra 0 to her tip. 🫤 Better be glad I’m not bartending anymore, cause once it goes in the jar, it doesn’t come back out. 

[Twpchair]

😆 😆 my first year with Square and then all it was plugin the phone and of course, I was talking away with a regular customer and meant to hit 100.00 and added an extra zero!! Ugh, I didn't catch it nor did the customer until 3 days later! I felt horrible. Because of the turnaround time then I wrote her a check for 900.00 and we just settled it ourselves back then. I have been with Square for 12 years I believe? I have not had 1 return, refund, etc since then either! I stop talking and pay better attention 😆 

[Papacouture]

I am having the same issue and I really like the automatic payments however, if I do not receive an offer in the next couple of days I am going with a loan offered by my personal banker and more than likely will use their processing. I need a business loan that is dependable and not a guessing game.

[Mansellmc]

And I wonder if, when they hold out on making an offer till a higher percent, does the offer amount come in lower than before? Last offer went up by 8k. Just wondering if they wait long enough, when they are going to lower it, that way you still get somewhat of a difference to deposit rather than just paying off the current loan. 

[Twpchair]

That’s a 50/50 shot really. I’ve seen it go even lower than the first low offer and I’ve seen the same as the previous offer come in as well. Most people who are getting the lower offer have been paying it back in say 4 months after that most of them said the next offer was much higher than the last one and about 3-5k higher. I think think I can really remember anyone coming in and saying “wow” 25k higher then the last offer not in the last 18 mths or so. 

[Jasmineb1995]

Currently at 84% all green and no new offer. Usually they’ve came in around 75-78% This will be my 4th loan, I’ve increased yearly sales by over 20k

[Lakcontrola1]

Im currently at 90% all green nothing I could’ve really used the money to inject capital in my business 🥹

[ewing1]

This makes me so mad. They know our selling point is high right now. Yet they hold the offers that would benefit both parties. Doesn't make sense to me. 

[Twpchair]

Ugh, hopefully soon! It's been a good year trending higher to paid off. Not everyone of course as you see. Since October it has started to come down though. Keep processing and trigger that algorithm!

[Lakcontrola1]

I got an offer last Sunday at 90% and was offered less then before way less , I received my deposit on Wednesday finally . 

[Twpchair]

I tend to be a late Saturday night offer and I think it's just because Thurs-Sat is our busiest days of the week or that's when I do sales. Saturday night after I updated in pops up the offer and its usually Monday night or Tuesday. Not much happens on Sunday 

[Jpphoto]

I am at 90% right now, refreshing and waiting...

[ewing1]

I've decided I'm going to move back to Shopify. They have both capital and credit. 

[Twpchair]

Unfortunately, it's been trending higher % paid back or off for about a year. Not everyone as you see. Since October I've been seeing more and 80s pop up. Usually, after a long Holiday, it seems pretty slow, and then on Monday it starts to kick in again. Could be a coincidence just a trend, im not positive but just a trend I've noticed. Good luck to you and hopefully Monday will be a great day!

[Greatlakes891]

Has anyone seen offers during the weekdays sitting at 81% with fingers crossed!