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.

[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.

[maryanngregg]

I’m wondering when it does update, with the time stamp and says *not eligible*, does a offer come later that day, or does the *not eligible* disappear for the daily update and a offer appears instead of update?

[Pecard81]

In my case it updates and later that day I get the loan offer but it’s not during the update.  That’s in my case.   Hope it helps 

[Kristencutshair]

But does it still say not eligible? or does it still say that and then it's just *surprise* loan offer. it's been awhile since I've used them and i'm realizing a lot has changed lol

[Pecard81]

It just “Surprise”!!

[Twpchair]

The same I've never updated and instant offer. I update 1-3 pm and offer around 7-10 pm usually.

[Joeylee56]

What just happened to me a few days ago was that the “last updated” did not update for 48 hours. That should be an indicator that it’s incoming. Not always the case as they often have glitches, but if your loan status stops updating and your green and above 75% , it’s definitely more likely than not.

[Pecard81]

Is the 75% almost a 100% must now?

[Joeylee56]

Unless if you’re getting a ton of processing per day. 

[Twpchair]

That long long trend of 90% to completely paid off so I would say. However, in the last few weeks I've seen a good group of upper-70s-80s who received offers. 2 I believe in the 60s. Now they were processing high volumes and big numbers and no disputes no returns. Hopefully, they didn't jinx the rest of us! 😆 good luck and keep us posted! Posting your experience it helps us to see a trend until someone else besides myself figures out how to crack that code in the algorithm! 😆 

[Twpchair]

That's the million-dollar question honestly. I usually update around 1-3 pm Eastern time. All of my offers are usually 7-10 pm. Never have I received an offer right after an update or at least since the metrics came into play. Yes, there have been glitches, there was a big technical issue on October 26th I believe where some businesses lost all ability to process, update, and transfer any cash sales, etc. It stopped QuickBooks from transferring online sales, and inventory just about everything. That took some time to straighten out and even my updates went to 4-5 pm for a good 4/5 days. All fixed but caused a trickle-down effect. Once I received an offer and accepted it and waited for the approval I watched my loan circle if it went to 100% and right under it where it has previous loan and has your percentage of the money I still owe paid off. I know that I am approved and just waiting for your deposit will be blah blah blah. Trying to see if you are ghosting and if an offer is happening in the background or if a glitch. Many believe that when it does that for them at least they stated an offer came in. Myself, I have not noticed that on my account. Just the latter part. I tend to receive offers on Thursdays and Saturdays for the majority that I have gone back and looked at the dates which align with the 3 busiest days before. Hopefully, that helps, and good luck! Keep us posted if that ghosting works!

[Pecard81]

I am at 67% all green as well 😳

[Twpchair]

For myself no never. I update 1-3 pm and offers come in around 7-10 pm for myself usually.

[Paulynne]

92% and all green, nothing yet. I called and of course got the same message. They escalated it to a supervisor and the supervisor essentially typed what we all read on the loans page 😔.  I pray my offer is coming soon. I will keep you all updated. Thank you @Twpchair for all the positive and inspirational messages. 

[Twpchair]

You are so welcome! I am not sure if I told you this or not but some users swear by this method. I have not done it myself but you know in your loan section where it gives you the circle and percentage and it states, unfortunately, your account isn't eligible for a loan now scroll and scroll down to the very bottom, and you will see a smiling face and frown face it allows you to leave a message. Hit the frown face and let them know what is going on with your account and whatever your situation is tell them you don't understand why or what is going on. I'm processing like crazy, no disputes ever, and yet nothing! I have been a loyal customer for 8 years and never missed a payment etc and then tell them please 🙏 don't give me a generic response im extremely disappointed and gutted. Here is my number if you need anything from me or if there is something wrong with my account im not aware of. Thank you. All of that I have never tried but others swear by it and they say a rep does call them back. Some said that they did it 2-3 days in a row and received a call. All of the above-mentioned I don't know your numbers or processing volume of metrics I was just repeating general statements as an example. A good percentage said it did help and within a few days received an offer. I will say most importantly they were all very close to you around 90% paid off to completely paid off. Was it a coincidence or did it help? That I don't know honestly. They did say that didn't get a scripted response and a few had issues with communication errors with Square asking a few weeks ago for an EIN or something simple they needed and boom square worked with them and waited on the phone for the Drivers license or EIN and boom generated an offer. Others that are reading if you are not 90% to completely paid off don't waste your time you WILL get the script! This seems to help those stuck with no offers in months or very high % paid back and metrics are booming. I hate giving this out but you are amazing and help so many people and you stick around with great advice and YOU are extremely positive and pick people up as well who are about ready to give up. As I said that has been the best way I have seen others' posts to get a person to call them back was a negative review. I told them afterward you better leave a 5-star! 😆 but honestly at 91% was one of the last few offers. I was 84, 91, 78, and just the last one 69%!!!! I took the 91% I hate to roll over 30% of a loan but that's just me. I think I would like to know about all the glitches honestly you didn't have an issue with just the required information and you never got it and wouldn't know. Sorry for the long rant but hopefully it does help if it is not worth a message or two! Good luck!

[Paulynne]

Thank you so much! I will try that and see if someone will actually look at my account. Thank you for being so detailed. lol, I didn’t mind the long message. 

[Twpchair]

You are so welcome! Hopefully, it helps! 

[Kristencutshair]

I'm so annoyed, square is so fickle. I'm off 4 days in a row every other week and square changed my metrics to increase processing. I've increased my my process by quite a bit the last couple months. 

[Twpchair]

I know I wish there was a way that it took into consideration days closed. But what it does is it takes in the whole picture of the overall health of your business and many like me close 2 days in the winter and it dips to needs works and I still get offers and many others on here can say the same. Last winter we didn't close but 1 day because we had the warmest winter I can remember ever in Michigan and started to take orders or sales over the phone or online. That couple of sales or sometimes 10-12 kept my metrics up compared to the previous winter. The big important ones are disputes, chargebacks, and returns. The disputes take a human and they have to notify you and then their card company and it is a lot of back and forth to settle it. Most of the time even in your favor it affects your account. I understand it happens and 1 time isn't that bad. Multiple times in a quarter I believe? We have a zero no-return policy even as a retail furniture store. Our furniture comes with a warranty and the rest we as the business handle the rest in store. Even with the dip in the metrics there your picking up with the other days it's kinda a wash because your overall sales are roughly the same. I  think you will be fine. We all have days closed or slower months but it's the overall health and growth of your business. Good luck!

[CTC18]

Just wanted to post that I received an offer today at 73% paid off. The offer is for 8k more than my last offer. The last time my approval process was brutal for whatever reason, maybe because of a larger size loan. Please send up all the good vibes that the process this time is seamless because we need this loan for holiday inventory. 🙏🏻

[ThePlantDealer]

Congrats!!! 🎉 Hope it approves no problem. Holiday is def a stressful time. I'm currently at 87% and still waiting 

[CTC18]

Thank you so much. Typically it was always in my account within a few hours but last time it stretched out over a week of sending paperwork back and forth. My anxiety can’t take that this time. 😮‍💨 Sending good vibes your way as well! The holidays are most businesses busiest season but we need the capital to get the inventory to make the sales. 🙏🏻