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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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]

Congratulations again! Those big large deposits definitely trigger it. I'm happy to see your back on track with loans during your busy season! Here's hoping for the rest! 

[Thatgirl]

Is square the only place that offers loans based on payment processing other than PayPal? I am 98% paid off from what i am reading I would do better doing my wait elsewhere with a more predictable loan system, it's part of planning ahead, and a very integral part of growth in a business unlike personal loans for convenience. 

[Minion]

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@Thatgirl wrote:

Is square the only place that offers loans based on payment processing other than PayPal? I am 98% paid off from what i am reading I would do better doing my wait elsewhere with a more predictable loan system, it's part of planning ahead, and a very integral part of growth in a business unlike personal loans for convenience. 

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There are many places other than Square that offer these based off payment.  Each ones have their own set of guidelines and algorithm.  Some have weekly payments, monthly payments or % of sales similar to Square.  

Amex Blueprint (formerly Kabbage)- I believe is only a soft pull for current Amex customers, and i'm almost positive you can check to see if you qualify if you are a current Amex customer. 

QuickBooks Capital- Weekly payments based of sales. 

OnDeck - Weekly payments based of sales

Fundbox- Weekly payments

Each of these have their own set of guidelines.  I would encourage you to look at each along with any fees associated very carefully.  All of these, like Square Loans can change algorithm or offers based on a number of things.  Some of them even can change offers or reduce offers based off from your personal credit score.

If you are looking for full transparency, I  would strongly advise to look into business lines of credit (BOC) with your current banking institution.  In the long run this will most likely save you a headache of having to wait for funds while still building a personal relationship with your local bank. 

Edit: I believe I read an article a few weeks back that the SBA is supposed to also be coming out with some time of LOC or something similar I believe to SB owners.  Unsure of exact details on that though. 

[Twpchair]

Years ago, I went to my credit union and called about a line of credit. Do I need anything, etc, Nope, they had all my paperwork and licenses, and they can look right at my account. I only bank with them.  No kidding in about an hour boom done received a line of credit. Now, I do use that for emergency type situations. But I have it. I just myself like small credit unions vs. bigger banks, just my preference, but they seem to lend faster and more often to small businesses. They did offer a business credit card, and I turned that down over the LOC. I'm old school and I do like Square. I've never been with anyone else, though, to compare. But I swipe that card and 5:05 pm it's in my bank. Loans love them, too. I don't take every offer more so the winter times, or if a deal comes along that I just can't pass up on and an offer came in, I would take it. I'm also one that likes the higher percentage paid back. If I want that loan, I want the most of it and not roll over 30 or 40% of an old loan eating into my new offer. But that's just me. Everyone and their situation is different. I see people with broken equipment or business repairs that need to be done ASAP. That's much different, and I feel for them, and each day I watch hoping they get that offer!

[Minion · Accepted solution]

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@Twpchair wrote:

Years ago, I went to my credit union and called about a line of credit. Do I need anything, etc, Nope, they had all my paperwork and licenses, and they can look right at my account. I only bank with them.  No kidding in about an hour boom done received a line of credit. Now, I do use that for emergency type situations. But I have it. I just myself like small credit unions vs. bigger banks, just my preference, but they seem to lend faster and more often to small businesses. They did offer a business credit card, and I turned that down over the LOC. I'm old school and I do like Square. I've never been with anyone else, though, to compare. But I swipe that card and 5:05 pm it's in my bank. Loans love them, too. I don't take every offer more so the winter times, or if a deal comes along that I just can't pass up on and an offer came in, I would take it. I'm also one that likes the higher percentage paid back. If I want that loan, I want the most of it and not roll over 30 or 40% of an old loan eating into my new offer. But that's just me. Everyone and their situation is different. I see people with broken equipment or business repairs that need to be done ASAP. That's much different, and I feel for them, and each day I watch hoping they get that offer!

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I agree everyone's circumstances are different and things come up randomly.  The biggest thing is like you said, if possible, to pay that thing down to 10% or less is ideal for sure if you can.  Just makes the most sense to me as well.  A 15k loan doesn't mean anything if you are losing 4-5k of that to pay off the previous one. 

[PFS36]

So, we opened our new location this Wednesday and we were at 92% ... we jumped to 99% at noon today.  This move was a great move. Still praying for y'all that's waiting.  We're still waiting,  too.

[BiancaAlexandra]

Just wanted to give my feedback!

Ive been using Square for a couple years now, to run my Bridal Hair & Makeup Business. Ive had a couple loans from them and have been affected by the late loan offers too! I usually get an offer around 70% but today I got an offer at 93%. My last loan was for $3640 and the new offer is for $1430. Super bummed. Debating accepting loan or just finish paying off the loan balance. I waited for this offer for so long and now that I have it im not sure I know what to do with it.

[Koleen1234]

How much do you usually process with square 

[BiancaAlexandra]

My net total last year was $53.3k. On track to pass that this year. 

[Twpchair]

That's what they want to see is growth, a stable healthy business, a good mixture of new and returning customers. You can do this and get those offers up and back on track!

[PFS36]

Howdy! Good news... The new location first week boosted our sales at 495% over old location.  Paid off remaining $1400 of our loan in 3 days,  I believe. Hopefully it will trigger something,  but if not, we can keep on waiting. It's just nice to have it there in case we need it.

[Twpchair]

Nice! I'm so glad and excited for you! I know when I moved and roughly 1k square ft to 12k sq ft. I thought my husband was going to have a stroke. I told him you don't know if you don't try it. We outgrown the old building in a year, and it was the best move I've ever made! What an amazing start! I love it! I'm a huge shop, small and local.. keep rocking it! Im so happy for you! 

[PFS36]

Thank you 😊! We moved from a small country town of about 5000 people,  to our hometown with 65000 people.  We're in the entertainment district,  now and wow... should have made this move a long time ago. 

[Twpchair]

That's a big move! I just added square footage. That's a whole bunch of new customers and in that area as well? I'm going to say the same thing. WHY did you not move sooner!!!! 😆 😂 😅 I'm excited for you! Regardless of when you receive a loan/offer and with those numbers, you should! Will you keep me posted on how the big move has changed your business, your clients' new vs. old, or return customers. I am on a couple of other forums, and this question comes up often. Should I or shouldn't I? You know my answer already, and it's the same as yours and go for it. Way to knock it out, and here's to a great start! 

[PFS36]

Thank you 😊!!! We are thinking the same thing!!! Quadruple sales and a better clientele!!!

[Twpchair]

You're not the only one, unfortunately. Just imo only. IF you need it and can pay that off in, say, 6 mths. The next offer for most is higher (not all of course), especially if your sales continue to grow, which is great BTW 👍 and you haven't had a loan in a while, I see this more than not. There's one on here now whose offer was a 1/4 of the last he paid it off in 6/7 months, and it doubled did the same again and 3x the amount. Again, I am not saying that you will have the same experience. Unfortunately,  my crystal ball is broken, but I follow the trends, is all. 93% to pay off isn't so bad less to roll over, and you will get more of your offer. Good luck to you no matter which way you go! And keep those numbers growing and growing 💪 

[lisap1970]

I am new to thread but I’ve come here looking to see how everyone else is doing on loans. I’ve been with square for 10+ years with several loans . I’m  82% paid off but I haven’t connected my personal bank account because I mostly use my square checking . Should I connect my bank? Would it help? I also have been watching my sales and for the year I’m showing I’m done about 30% for the year but we are seasonal and much of our business is when the leaves change and the holidays we are a tourist town in the mountains. 
thanks for any info. 

[Twpchair]

I'm sorry I responded, but I don't see it? Loans these last 2 weeks or so are bouncing around! This summer, it's been trending higher percentage paid back or completely paid off, and now you're seeing a couple each week in the upper 60s or low 70s??? About 3 weeks ago, I was 69% paid off and checked my metrics, and boom, there's an offer?? So, I'm not going to say it's swinging like 4/5 yrs ago when I hit 70-75%. I could 99% guarantee an offer was coming in, and I was growing, and business was booming. Do you process cards daily and check your account and metrics? That's where I see it the last 3 or 4 because I used to get an email alert, and I haven't? I checked my account usually every night, and there it was. Good luck, and hopefully, we are getting over a hump and lenders holding tight. 

[GlitzyCow]

Square is lending. I have had a good couple of months with processing and I got an offer sometime within the last couple of days bc I wasn’t expecting a loan to pop up but it did and it was 3x more than the previous and it came much earlier than expected. Thank you square. I accepted it this morning and they asked me for my EIN number for the business and once I submitted I had acceptance in 2 hours. I am so relieved. This is huge for us to have a cushion. Insight- we process over 500k a year. I hate banks so I thoroughly enjoy square when it’s working with us. I had a tough last year with square.

I think the reason I got offered a loan so quickly is because I paid the first 120 days in payments in just half the time. They recalculated a more appropriate amount. This is a vast change from years prior. Good luck everyone. 

[Twpchair]

Congratulations ❤️ 🎊 I am so happy to see you back on track! You've had a rough ride, but it seems to have you back on the loan train

[Jjpainting]

Congratulations!  Yeah I think I remember you saying you got a loan offer a couple months ago and it was extremely low, which is what happened to me.  What was your repayment like cause that’s what I’m hoping will happen to me (last loan was about 40% of the one prior and about 4.5% of my yearly processing amount only). My first loan payment isn’t due for another 10 days. Ive already paid over 6X the first payment, or over 180 days of payments in under 60 days of processing.  Actually I was at this mark in 6 weeks.  Most of my customers have paid by cash/zelle this past 1-2 weeks.