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 · 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 

[Malamaark]

Good to see many more people getting an offer come through, unfortuanty two months at 100% paid off and still nothing here ! hoping for a miracle at this point 😂 

[Twpchair]

I know I would love to see this board full of offers! Too many completely paid off and waiting. Good luck to you and everyone waiting! Please keep us posted if you don't mind? 

[ApexSupply]

If Im unable to recall, where can I see the % I was at when I received my last square loan? Did math to get a rough estimate but not sure of the easiest way to tell. Currently at 72% and pretty sure last one was at 68? Hoping its comes soon and even though my last was my largest yet I hope its a little more this time as the additional boost has really helped increase my sales. 

[Twpchair]

Honestly, the best I can figure is doing exactly that. Before, I could always count on one 70-75%. Now it's been 91, 84, 81, and 69. I did a square folder on my phone, the date, the percentage paid off, and if I accepted it. It's easier for me and fast. Before, I did what we did, and I think it was within a point or two. Unfortunately,  that's all I know as well.

[ApexSupply]

It’s definitely frustrating. 73% today. I feel like it’s coming 😂. 

[Twpchair]

For months, it's been trending higher percentage paid off or completely paid off, and now out of blue, I'm seeing 1 o 2 at like myself 69% 65% and then 96%?? We still have some 3 mths or longer completely paid off, and everything is up and processing like crazy? I have an LOC at my credit union, and I know they are offering lending, credit cards, and LOC. About everyday they are offering something. This started about a month ago or so? Hopefully,  that's a good sign. Good luck to you and everyone waiting!

[Jjpainting]

I have been thinking about switching to a credit union for a business checking account. I only really use my square and my personal chase account. It was only until recently that I discovered that my square checking is considered a personal account and not a business account. I found this out when I tried getting a business loan. I was preapproved on the few I tried (based off of my business income) but then when they asked for my last 3-6 months of business checking statements, and I sent them my square statements, everyone said they couldn’t accept them cause it’s not a business account. Square advertises kinda like it is a business account instead of personal. How long were you at your credit union before they offered you a LOC?  And do you have any suggestions on a good credit union in Michigan?

[BeeBraids]

Hi Did u ever get a new offer ? And if so what percentage were u at? I just hit 70% this is my 2nd loan, my first one was completely paid for exactly one week before I got another offer, but I was reading about other merchants getting offers much sooner than full repayment. 

[BWcreamery]

Finally got an offer!!

Have been paid off on my last loan of $9350 for about 6 weeks now. 
Today (Sunday) I got an offer just before 6PM for less than half of my last offer (3700 this time) and approved and in my account within 8 minutes. 

Thankful but still praying for yall! 

[Healthyketo]

Congrats! Great to hear some activity today. Hopefully more will be rolling out this week. 🙏

[Twpchair]

Ughhhhh, I am so sorry I look every day for you 😢 finally a few that have been paid off are getting offers. I hope you are next!

[Twpchair]

Congratulations! I'm sorry it's lower, but hopefully, it will help! I'm glad to see some who have been paid off getting offers! Let's keep this rolling!

[indiaink]

is there a method to the madness on when you will be offered another loan?

[Donnie-M]

@indiaink I finally found the algorithm posted somewhere deep deep in a reddit article.

Square Loan Offer Algorithm:

1. Initialize Offer = Yes.

   • Set "Offer Status = Pending Soon."

2. Check Seller’s Sales Volume.

   • If Sales Volume < Threshold, proceed to Step 3.
   • If Sales Volume ≥ Threshold, proceed to Step 4.

3. If Sales Volume < Threshold:

   • Set "Offer = Maybe."
   • Display message: "Keep up the great work! We’ll review again soon."
   • Redirect to Step 5.

4. If Sales Volume ≥ Threshold:

   • Set "Offer = Likely Soon."
   • Go to Step 6.

5. Evaluate Account for Inactivity:

   • If Inactivity > 7 days, set "Offer = No."
   • Display: "Consider boosting your sales efforts."
   • Return to Step 2.

6. Analyze Account Consistency:

   • If Inconsistencies Found, set "Offer = Re-evaluate."
   • Loop back to Step 3.
   • If Consistent, proceed to Step 7.

7. Request Additional Documentation:

   • Wait for Seller Response.
   • If No Response within 48 hours, go to Step 8.
   • If Response Received, return to Step 4.

8. Reassess Loan Parameters:

   • Randomly adjust Threshold criteria.
   • Recompute Sales Volume by the factor of the Airspeed Velocity of an Unladen Swallow  
   • Loop back to Step 2.

9. Final Decision:

   • If "Offer = Yes," display "You’re eligible for a loan! Details coming soon."
   • If "Offer = No," display "Keep up the good work. We’ll review your account again soon."
   • If "Offer = Maybe," repeat from Step 1 for confirmation.

10. Completion:

    • If Offer Status = Pending, return to Step 1.
    • Otherwise, close the process and notify the seller: "We’re still evaluating, please stay tuned, more detail soon!"

Key Terms:

Definition "Soon": Block, Inc. All rights reserved. "Soon" does not imply any particular date, time, decade, century, or millennia in the past, present, and certainly not the future. "Soon" shall make no contract or warranty between Square & Block, Inc. and the end user. "Soon" will arrive some day, Square does guarantee that "soon" will be here before the end of time. Maybe. Do not make plans based on "soon" as Square will not be liable for any misuse, use, or even casual glancing at "soon."

Now<---------Pesso Very Soon---------Soonerino---------Very Soon---------Soon---------Very Soon-ish---------Soon-ish---------Soonish...er--------->End of Time

I hope this helps and is the most accurate answer I can give.

TL:DR:  They continually evaluate accounts on an ongoing basis.

[indiaink]

😂😂😂

[TheRealChipA]

OMG @Donnie-M. After reading that, I’m worried you violated your NDA. 😉😝

[Twpchair]

Here, I am looking around my past offers vs. sales, and I am like, hmm, either onto something or he nailed my last 3/4 offers. Especially the last one at 69%??? A few weeks back. I don't look daily except my metrics and then my bank. I'm not sure why I've only had 1 deposit in a decade that didn't go in at night, and that was on my banks part. They were down for maintenance. 

[Healthyketo]

Nope you’re pretty much in a waiting pool hoping to be chosen. Lol been paid off since June 28th and still waiting on an offer 😒 all metrics on good standing and nothing. A lot of others are also in the same boat as me. 

[Twpchair]

Ughhhhh, you are one I look for everyday hoping to see that offer come in for you! Come on Square loans 😫 and drop an offer tonight! 

[Healthyketo]

🙏🙏🙏praying everyday! 

[Twpchair]

Hello, here I am checking on you! If you don't get an offer soon, I'm going to start calling Square, too! 😆 😂 😅 ughhhhh,  it's not funny 😐 I know it's getting crazy! I'm pulling for you, and half this thread is!!! It just blows my mind, really. I'll be looking later and hopefully shake loose tonight! Good luck, and I hope your offer comes through and it's a good amount for all your waiting!!!