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.

[BlueStarDFW]

Go figure. I got an offer last night around 6pm. It was at 88% and about 25% less than my last loan.

But it came through and was funded within 10 minutes 

[CTC18]

I was thinking I was about to get an offer last night. It didn’t update until 8pm saying if I was eligible or not. It finally updated saying ineligible and that my processing volume needs work. Nothing at all has changed on my end. So frustrating.

[stanleycourtney]

It is very frustrating… This is my 7th loan with them and I have always had offers around 75-80% I am sitting with 83% and no offer in site. 

Processing every single day with POS systems and online invoices. I contacted them today and they have a generated response. It would be so helpful if there was a list to go by on what is causing the offers not to show… I understand it’s an offer and not guaranteed but a guideline to go by that is helpful would be nice. 

[GoodBoyDogTrain]

I'm at 80% and all green noting in sight here either. I'm with you 100%. I understand it's not guaranteed, I just wish I knew what is different now vs the other several loans I've had with them. 

[Twpchair]

I was usually 70-75% range my last loan a couple weeks ago I was 81% it came late Saturday and funded Monday. It was a bit higher not much but it came. The prior was 91% paid off. The trend I'm seeing is the percentage of your current loan is higher to paid off before a new offer comes in. Not all of course. All my areas were green and good. I didn't connect my bank. I did have 3/4 extremely busy days just before my offer came in. Hope that helps and good luck!

[GlitzyCow]

Hi. I’m sorry I’ve been off lately. I think I saw you tagged me somewhere. I did get a hold of someone from account services. The first person told me they couldn’t transfer me to anyone and that I’d have to wait for an email. Then they emailed and said if I wanted a phone call I should call. So I called and basically said listen wtf is happening. Get your story straight. Got to account services and she looked at my account bc of the issue I already posted and the limit I have on ONE of my customers and being lied to for 8 straight months. She told me that I’d have the limit until they did a review April 1st. She also told me that it’s every six months. This makes no sense to me because April 1st is actually nine months. But she said the six months started in October….????? No idea. But she confirmed that the account should automatically review April 1st several times. I have no hope it will. She had no answer when I said ok but that is 9 months not 6. So I wonder if something got switched bc I did email them several times in October, to which nobody replied. She told me that it wouldn’t automatically take the limit off of that one person but it would review whether to eliminate it, increase it, or lower it. She told me that continuing to let that customer process is fine and wouldn’t increase my chances of them continuing to have a limit. 

summary:  I have no idea if anything they told me is the truth. I do know it’s been almost 9 months of square telling me lies. They told me last July that the one person they limited would have the limit removed in 90 days if no charge back. Well… apparently that didn’t happen. So- I guess April 1st will tell the tale. 

[GoodBoyDogTrain]

I just received an offer today at around 2:30 pm central time. I am at 84% paid down . It was a couple thousand less than my last loan. My account had been connected before hand. I accepted the offer bow I'm just waiting. I'm guessing I won't see anything until Monday, but has anyone gotten funded same day or on a weekend day?

[Twpchair]

My last offer a couple weeks ago came in around 7 pm Saturday night and I was approved and funded Monday. I have had a couple prior on Saturday and nothing for me at least till Monday. Good luck!

[Twpchair]

It seems to be the trend or slightly higher. Everyone seems to be holding back a bit I've noticed. Congrats though! 

[Twpchair]

Mine was the same range prior around 75% not the last 2 loans. One was 91% and the last one 81%. It was Saturday night and I had 3/4 extremely busy day and the offer came in Saturday night and funded Monday. Slightly higher but not much. The majority I'm seeing their current loan percentage is higher paid off or paid off completely than an offer comes in. Not all there are some saying they got one at 60% or whatever but not many. Good luck and no I didn't connect my bank account either.  

[Jose22282]

Has anyone had any luck with any offers? I’m coming up on 78% paid and no offer yet. 

[Twpchair]

Yes, I did about 2 weeks ago. I had 3 very busy days and late Saturday night offer came in slightly higher and lower % of daily sales to pay back. All indicators were green and no my bank isn't connected. My previous offer was June and I was 91% paid off. All indicators green as well. They are still doing loans. I stick around here and from June till now I see more and more people reporting they just got an offer. These are just the ones that post here. Good luck and keep processing daily!

[stanleycourtney]

Anyone get a new offer lately? I am still here sitting at 85% with nothing but Green and nothing in site. 

[CTC18]

I’m at 73%, all green, sales up higher than ever, and my loan paid back 4.5x times faster than the minimum due in 6 months. Nada.

[Twpchair]

Yes, I did 2 weeks ago and 3 others just posted here this week and one late last night. They are still coming! The % paid off seems to be higher for most (not all) usually right around the same amount as previous loan. Good luck! My last one I was 81/84% paid off and in June I was 91% paid off before new offer. Keep processing both mine kicked in after 2/3 really busy days!

[stanleycourtney]

I have a question.. Does it matter how we process? I do a lot of Live videos and sell on live.. I invoice instead of using the POS system.. I use the POS at my store… Would any of that matter? I am 88% paid off and nothing in site.. It’s so frustrating. 

[CTC18]

It shouldn’t matter how you process i.e. invoices vs swiping. I’m at 78% paid off in 6 months, 4x faster than my minimum requirement due. All green, sales way up MTD and YOY. Still nothing.

[Tritter82]

I also do a lot of invoicing. Doesn't seem to make a difference.  I was just offered a loan about 2 weeks ago at about 76% paid

[Twpchair]

Congratulations! And no, processing is processing whether invoice or credit cards.

[Twpchair]

Processing is processing whether you swipe a card or via internet sales. I do both as well but more cards. My last offer now was 4 weeks ago roughly? No my bank isn't connected and never has been. I had 3 extremely busy days and Saturday night my offer came in and Monday I was funded. I was 81/84% paid off from my last loan in June which I was 91% paid off. Right now it's bouncing around from 70's to completely paid off before a new offer comes in. Last summer the % was was high to fully paid off. Most offers are tending to be slightly higher or less than the previous offer. Lenders from all over the industry are pulling back right now. Even if you're busy is booming in general the economy has slowed down and lenders watch that. Good luck and I hope that helps!