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]

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!

[Jpphoto]

Congrats! I am at 90% with what would be my 7th loan and still nothing. I am starting to lose hope. 

[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%

[Twpchair]

Hopefully, you are getting so close! Keep processing like crazy if you can and see if that algorithm kicks in! Good luck!!!

[ewing1]

82% and nothing 

[Twpchair]

Your last % if you don't mind me asking questions what was it? How many roughly offers do you receive in a year? 

Mine since last March/April I believe now I do not accept every single offer either. I tend to in the winter our slower months. 

But March/April 84% (didn't accept) lower

June paid off ( higher 9k than my original offer, not the lower one I turned down. Didn't accept it

August still paid off and was watching how slow it was with offers. This was 15k higher than my last original loan I accepted and I got nervous and accepted it. Then comes my last offer at 69% paid off for the same amount denied it! I don't like to roll over 30% especially, if the offer is the same or lower. That's just me but in the past in the dead of winter and it's a rough one I do have a LOC at my credit union or bite the bullet and could accept it. 

[Twpchair]

I'm retail furniture and from Michigan and our snowbirds are gone roughly Nov/March/April that's are slower time except for the Christmas season we are extremely busy. So pretty much May-December is my best month in my area. I'm very rural and we don't have any big box stores besides Dollar General everywhere and fast food at both exits on the freeway. 

[ewing1]

I should add I've always met my 60 day minimum right away. I've never had to make an additional payment. 

[Twpchair]

Okay, yeah that is one where you still would be an offer but lower is all. That means their last offer/loan was too big for processing to handle. So that's all good. Even slowing down we all have different times that are our slower seasons or like yourself and a few others that do construction or painting tend to have a much higher payout and the customer is writing a check or they use something else for their pos system to payout invoices. Unfortunately, a job is a job and money! You can't force them to use Square. You want that job you take what they want. I don't know imo going off of a good 90% the percentage is coming down if I was a gambler if you process like you have been I would be putting money down and thinking that this week or weekend? Again, I just went back through the last 3 pages, and the amount stated in the 80s is the majority of them now. 

[ewing1]

I wonder if anyone talks to a support agent and it helps with triggering an offer? 

[Twpchair]

It's getting to one is the problem. You are calling a call center and unfortunately, you get the script that there is no guarantee of if or when you might receive one but keep processing.

[ewing1]

Ick. Even when they say to call the loan specialists. 😔 So frustrating and what a run around.