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]

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 

[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!

[Twpchair]

Hello, im guessing you are from Michigan too? There have been low 80s and a couple in the 70s. It's been a good year of higher-paid back to paid off. I have seen since October that % coming come a bit. Hold tight and process as much as possible, especially like a 3-day span and see if that kicks in the algorithm! Good luck!

[Jasmineb1995]

Just got my offer today at 87% and sadly it’s half of my previous offer eventhough I’ve grown so much this year 

[Twpchair]

Ugh, I know it's not what 75% expected or wanted. Hopefully, you follow the trend and pay it back quickly, and a new offer comes in most cases go back to your last offer ( not this one), and about 3-5k higher if you continue to maintain. Not all of course but following the trend just a handful that's been waiting for one have stated “My offer was double the last one” not many of those. Hopefully, the funds will help!

[Twpchair]

Well, I just answered your Monday question and it looks like although lower a Friday after a holiday offer came in! That's why it's extremely hard to give a 100% answer. We are all different, we process differently, and we are located differently. Our lines of business are different. All most of here to help is offer our opinions and what we have been seeing on the whole. Very few that post on here at least have had substantial increases in their offers. 50/50 split between lower or stayed the same. A good 25% 3-5k higher and maybe 5-10% received close to or around double the amount. I know it doesn't make sense but lenders are starting to loosen up a bit. Hopefully, we can get back to 4/5 years ago and could count like clockwork 70-75% new offers and always higher as your business grows!

[Souloutcafe]

Congratulations what time did it come

[Mansellmc]

Around 8 pm Wed night. Money deposited today. I sent a heated email earlier that day. Don’t know if that had anything to do with it or not. Who knows. But I finally got it. And just in the nick of time! 

[ewing1]

Oh where did you send it? 

[Greatlakes891]

Was a review email or actual email?

[Twpchair]

Congratulations! It's hard to say but imo the algorithm already picked it you off when you updated that afternoon and then later the offer comes in. Wednesday prior to Thanksgiving here I doubt a human took it over. Just imo over the years. Regardless congratulations on the loan and I glad it came at the perfect time!

[ewing1]

What percentage were you at? 

[Souloutcafe]

I’m at 85%