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]

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. 

[Twpchair]

I have heard many fill out the form in the loan section on how we are doing with the smile and frown face. Leave a not-so-happy response and their phone number and someone did call them back so they said. I am not sure if that was luck or exactly what their issue was except for one who was processing some big numbers and no offers in a year after being completely paid off. She wasn't very happy and they called her back and found out there was a hold on the account regarding a high dollar customer. They worked with her for a couple of days and got everything working and the next day she got an offer. I don't think I would leave them a message like JD Wentworth 😆 it's my money and I want it now! But your volume of processing you are right there going off of everyone else posting lately but a handful. It's the one where your loan circle is click on scroll down past all the metrics to the very bottom. I guess it is worth a try you will either see one or not I guess.

[ewing1]

It was the very end of May around 65% I believe. I could of paid up sooner, however I did back off on my processing a bit during the summer months as I was doing large School orders and was paid by check for a couple of these. 

Since end of October I've been processing again like normal. Paying it off fast. 2 weeks ago I hit that 65% mark. Today I'm at 72%. 

[Twpchair]

So, almost or close to 20% in 2 weeks? That is awesome processing first. But I would have thought that amount of processing would have triggered the system? That is why I believe I tend to be a Saturday offer person. I run sales and our busiest days are Thur -Sat. The amounts are doubled to triple say Wednesday and im guessing that is what or why it must trigger the system and generate an offer. I mean now you are right there with everyone but 2 posting the last 3 pages. 1 was 60% something and another just posted 91% everyone else is saying upper 70s -80s range 

[ewing1]

Correct! I would of thought it would of triggered it last night after going up another 5% from the previous couple of days. But I guess not. I wonder has anyone had an offer on one of their "slow days" ? 

[Twpchair]

I have before after 12 years im not just a Saturday person but a lot tend to be. I have on a Monday and Tuesday before. Just like another posted this past week 1 of her metrics needed work but it was for a good mixture of customers' new and returning. The metrics are a good idea and good to know where you stand but it changes from needs work one day to the next depending on your day of processing. The big ones to stay away from are multiple returns and disputes! Because that brings in a human going back and forth with the card company and then banks. Having 1 here or there isn't going to hurt you but more than a few especially disputes can hold you up for a loan regardless of your %

[ewing1]

I'm in retail, so I do have a few returns. However, I don't have any disputes or charge backs and all metrics are good. 

[Twpchair]

Unless you have 3/4 in a week or 2 span and the algorithm goes to pick it off it would catch that. But here there and in between is kinda expected in retail or especially online orders and sizes, descriptions, etc are hard to please people who physically can't see it or try it on. Another guy I believe just posted 86% I believe and offered 11/13 half of the previous offer already close to 30% paid off. 2nd business only uses 2 months out of the year and just received its first offer. Both baffle me. Oh, sorry you still  have to call customer service and when prompted hit technical support issues. 

[ewing1]

How do we get a human to look at our metrics? 

[ewing1]

Sorry 82% mark not 72%. 

[Creldredge]

Thought I'd share with you guys. I was at 86% when I got my offer 11/13 and it was 50% less than my last one. I took it even though I wasn't happy. Since then I've processed enough to be at 28% paid off. The offer came in at about 7pm on a Wednesday. Minutes later my other business that I rarely used was offered a loan for the 1st time. Weird because I only use that account in November and December every year

[Twpchair]

That is strange the 2nd business getting one with only 2 mths of activity on it? And ugh, really 50% less, and in a couple of weeks almost 30% paid off? That's like a payday loan! Hopefully, you will knock it out fast, and the next offer they can or will adjust it higher to account for what you are processing.