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 

[Tyconcrete]

Well sitting at 91% paid off and nothing  .almost done at least paying it off and then won't need any loan from them and .I be looking to ho to a credit union. See about getting a other credit card processor cuz unfortunately when you really need squared they're not out to help their customers it's sad especially the ones that have been with them very long have had multiple multiple loans always paid early on time never late and the only thing they can tell you is it's algorithm my **bleep** I believe it's a bunch of BS but it is what it is thought that with the feds cutting the interest rate by half a percent and news of them cutting another quarter percent in November that they would start lending but already $68,000 or less than seven grand left and I'll be done it's a shame cuz Square makes plenty of money off of me and countless others through their fees and credit card processing and all the other stuff associated with subscriptions and everything else but yes they don't want to help out there long time customers they ought to have an option where they can do a manual underwriting and a manual approval or offer but no they say they can ultimately I believe it goes through a human to approve the loan but enough venting for me I wish everyone luck that's going to hold out and wait for one I've already given up on that hope

 

[SouthernSass24]

I finally got a loan offer at 85% paid and it was 5k less than the last time! Sales up 300% paid 10k off in 5 months! What is going on 

[Twpchair]

It's been very common lately. Most (not all have been lower) last summer started this wackiness. I have seen from 1k lower to just enough to pay off the last loan and the new loan was 0.00! Since you are doing great and paying off fast a good handful of people on here now said their next offer went up. There is no guarantee of course just going by numbers is all. The more users post the more or easier to see a trend. A few will jump on and give their experience for the last few loans. They are great for sharing. Congratulations on any offer though. It's finally looking better. 

[Paulynne]

I only told you all about Pipe since I had to use it in the past. It was simple for me. I don’t get any kind of credit for referring you to them, I was just trying to help. I didn’t have to submit documentation. I just connected through plaid, but I guess it’s different for everyone. 

[Jjpainting]

Did you not have to connect your square or whatever account your card processing goes through to their account?

[Paulynne]

That part was odd, but it seemed legit. I transferred $1 into my new account with them and the money was deposited instantly. Like I said, it seemed legit, since I don’t think Square would allow it if it weren’t. But I would contact Square and ask if you feel uneasy. 

[Jjpainting]

I don’t feel uneasy. I’m just curious. So you had to manually input your pipe account number into square and wait correct?  

[Healthyketo]

Has yours went through? I was told it was in review and than just checked and now I’m able to reconfigure but says it can take 2 days. 

[Jjpainting]

How long after signing up were you sent your funds?

[Paulynne]

After everything was set up it was instant. 

[Twpchair]

Thank you for sharing it here! It is posted in a different thread. People here should know if they see it pop up. ❤️👍

[Ulmen406]

Got an offer today at 82%, my sales are skyrocketing compared to the past years, loan offer was $2k more than the last. Still wish it would be about double what they offered as all of my loans are paid off in less than 4 months.. but oh well! Waiting on the 1-3 day approval now

[Twpchair]

Congratulations! Yes, back to normal would be awesome! I am glad it wasn't half of the previous offers I've been seeing! Thank you for the update!

[Luluskitchen]

We got a offer tonight we are 88% paid off and it was $20,000.00 less than last loan. Kinda want to accept but also only owe 6,000.00 on last loan and would really enjoy just having the loan paid off and have all my sales everyday.. paid over $300.00 just today out of my sales to repay the loan. 

[Twpchair]

I get that I believe both I saw yesterday were half or around it. Usually, the way it's been going but they took it for the next offer it doubled or up 60/65%. Not all of course but I go by numbers and what's trending. I don't take all offers. Especially, in the summer till Christmas time. That's my busiest time. Well not the offer you wanted but good luck with your decision and keep us posted.

[Jjpainting]

Yeah I am one of the people whose prior loan offer dropped by about 60%. I’m at 40% paid off in just over two months.  I’ll be at 60% within the following couple weeks and hoping that my following loan will go back to similar to the one prior.  

Also, I’m hoping that this pipe loan won’t affect anything.  If my next square offer is at or above my offer from last November, that would be perfect. If it comes in near 65%, and back where it should be, I can use it to pay off the pipe loan, and be in great shape. I am just thankful for the pipe loan. Came right at a time when I needed it most. I’m currently slower than I’ve ever been, which a lot of small painting businesses in my field are in the same boat.  People cut back on spending on things like this a few months prior to election. On top of that, I was recently in a bad car accident a few days ago, adding more unexpected expenses. 

[Twpchair]

1. You did the Pipe correct? I was wondering if that would affect your offers.  #2. While you are processing through Pipe if an offer would be available. This is just IMO I would look through any new loans AFTER you are all hooked up and using Pipe and see if in the new loan agagreement if Square takes into consideration the amount of the LOC and say with your daily processing volume, the health of your business we start to see instead of a 20k offer minus say 4k an offer of 16k. I know one square isn't going to let you get into a situation where you can't pay it back or the minimum due or with their rate depending on each loan and Pipe at 10%. I am off today because I had to go in on Sunday (my day off) and fill in. I will tag in a couple of Mods and see if I can get one to answer and not say call customer service. It's more of a general question, not my personal account info online. Let me know when you get your deposit from Pipe and then I will hit the mark as the best answer you can too and then you can see when your next square loan offers come and look right here how long it takes if lower by the amount of the Pipe loan. I think us users will have to pin this down by communicating and following the trends for now. 

[Jjpainting]

I’ll definitely keep the community posted on this all. I still haven’t received my pipe capital yet. They deposited the $1 back to me that I sent them for verification. The guy at pipe told me that means I’ll be receiving it later today or tomorrow 

[Healthyketo]

Seems like such a long process but so glad they’re willing to work with square customers.. I’m still waiting for square to verify the account so hopefully soon! 🙏 Praying you’re doing ok, read on another post you were in a bad accident. Hope you get your capital soon! 

[Jjpainting]

Just now got it!

[Healthyketo]

Awesome!!!! 👏🏼  thank you so much for the updates!