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.

[Tyconcrete]

Been with square for now 10 years 5 old store sold and this new one 5 years .first off here at new location was 6k .I didn't take didn't need it .then 16k took 24k  36k 46k 54k 69k .so 12k left on the 69k all others paid early .so either way will get thur it .but It sure would make it a heck a lot easier  . If it get to bad I have option to go to bank get a loan but at lot more .and don't want to tie my restaurant up with my land I owne my building so .could be better and a lot worse also .

[Twpchair]

so true, and that is all we can do is push through it. I belong to a small 8-12 credit union, and they are so much easier to work with and my paperwork zero! I asked before I left to leave, and she said no. They had all my business information already and can look at all my income information right there. About an hour later, I was done and out the door. This was prior to covid, so 6% wasn't too bad for it. She said I could really save if I did a business credit card for a year and then do the line of credit but it meant coming back again and with me and my mind never shutting down I would be using that one instead of my Chase! I know a couple on here really could use it with getting new equipment that is broken and needed bad for business. Hopefully, we should see something soon! 

[Twpchair]

I forgot to tell you, welcome to the lonely, frustrated, confused, what in the world is going on club! I guess I will be seeing you until the good Ole algorithm kicks in, and I hope it is soon! We have a great group of people and a lot who are very smart and have been around for a bit. I don't work for Square. I'm a retail furniture store owner, but I do help out in the most desperate club and try to calm the massive. Usually, most people know they scroll down and see it's not great right now, but honestly, I'm not kidding. The grass is no greener with other POS that do loans. They are jumping ships, too. Good luck to you and everyone waiting! If you have any questions, just yell unless it's where my offer 🤔 🙃 unfortunately I don't control that Ole algorithm, and I let that thing wide open!

[Twpchair]

I know your offer was lower than anticipated but since around last June I haven't seen to many go from double to triple like a few years ago. I was happy to see 3/4 of you finally get an offer. Hopefully, this continues! 

[Twpchair]

For myself since the metrics came into play I usually update 1-3 pm eastern time all of my offers around 7pm-10pm. That's just my personal experience. 

[Healthyketo]

Hope everyone is doing well today. Doing a pop up market today to boost sales. Hopefully today is my day! Had a great morning, hoping for an even better afternoon! Wish me luck guys! 🙏

[itisnotjustpiza]

Good luck!  We are over here still waiting as well.

[BodyLabPhilly]

Good luck!   I’m at 88% and have gotten to the point that I’ve paid back all of the loan amount, just the fee amount is left.  Hoping it triggers an offer today.  

[ls725]

I hope you get an offer, I am at 99% with like $20 left... no offer yet haha.

[Twpchair]

Finally, some movement! Good luck to everyone waiting! 

[ls725]

I wish it was moving for me 😛

[Twpchair]

It's been moving this week finally! Good luck to you and everyone waiting!

[Twpchair]

Good luck! Hopefully, it kicks in for you!

[ls725]

100% paid off now, everything in the green, so we'll see, I mean there's nothing I can work towards except keep making sales lol.

[Twpchair]

Unfortunately, you are right. We can't get that algorithm controlled! Just keep plugging is all we can do! Good luck to you and everyone waiting!

[TaylorA92]

Im a consistent lurker but not a common poster. I’m waiting for my 7th loan. Each one has progressively gotten a higher payoff. My last loan I got a new offer at 79%. I’m currently at 82% with a busy weekend. I will update everyone on what happens. I am in entertainment. Each loan has gone up in value so I will let you know if it drops this time as it seems that’s the common theme. We process near 300k a year.

[Twpchair]

Good luck! It's been trending higher percentage paid back to completely paid off. A few in 80s though. Thank you so much for letting everyone know. 

[PFS36]

Good morning,  y'all! Maybe one of you can help. We're in the restaurant industry but our hours are only 4 days a week.  With that being said, by Wednesday,  our processing goes to "needs work " . We do have our hours of operation listed in our dashboard. We're at 83% on a 15,500 loan which is our second loan. Does anyone else have a dip in processing each week? I apologize for the rambling,  this is my first time posting. 

[Twpchair]

Unfortunately, with just myself, if I go vacation or sick and I'm not swiping, it goes into needs work mode. The system seems to operate 24/7 and doesn't adjust to close days, vacation, etc. We're open 7 days a week until winter. we go to 5 days a week, and I see the dip and then boom right back up when I start processing again. That's been my experience since the metrics kicked in. 

[PFS36]

Thank you 😊  ! You're like the Community Guru, here. Our business is in a small town,  so most of the folks are or have been on vacation,  so our business has been slow this month.  Hopefully we'll get some great news soon and I hope everyone else does as well. 

[Twpchair]

You are welcome! A few cleared out this last week and weekend hopefully, it'll pick up again!