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]

You see the trend and besides a few most are 90% to quite a few are completely paid off. Good luck and I hope you are a lucky one that sneaks in sooner!

[Ann14]

Yay so happy for you 🙌🏼🙌🏼🥹

[Twpchair]

Yesssss! Congratulations and no more stressful days. Keep swiping 💳 away!

[itisnotjustpiza]

We moved our business to a bigger market.  Adding the second location we had to move our loan to be paid off from the new location when we closed the first one.  We have done business with square for 10yrs. That was the first time we ever had to completely pay off an existing loan before getting an offer.  Now we are increasing revenue faster than we can keep up. Just paid off the first loan for the new location. Has anyone noticed not receiving another off of sales spike tremendously?  Seems like a weird thing to complain about but our fear is growing too fast and not having enough equipment for supplies. 

[Twpchair]

Congratulations first 👏! 2nd, it's not just you. If you scroll down through the feed beside 2/3, most are 90% to completely pay off. I've been with Square since 2012, and I think those Ole days of I could count like clockwork between 70-75 %. I would get a new offer. It's not trending that way now, unfortunately. With sales up, have you thought about getting additional terminals or whatever you use through the square and their payment plan? I did, and there are zero issues. Our neighbors (business) retired, and they had a square, and they were an  amazing Lil café and she gave me her square equipment. I've also seen it on Facebook marketplace for sale. That I would want to make sure it worked. Also, I will tag in someone just to make sure you can still get used one's it's been a few years, and they could have changed that. I don't accept every offer from Square, usually winter is when I get nervous in Michigan, but I also have a great little credit union and got a line of credit in about 2 hrs and done. I'm sorry I really wish you the best! Growing is great but also extremely stressful as your workload triples. Hopefully one will come through soon for you! 

[itisnotjustpiza]

Thanks for the feedback.  We are good with terminals.  What we need is refrigeration for the extra food needed and payroll costs.  It has been more than we can keep up with in a heat wave.  So we had to take a little break.  Our customers are in a panic and jonesing for a fix lol.  I did send a message to see if our other locations status of no longer processing is impacting our eligibility.  It has been a few days so hopefully I get a response.  I would prefer an offer instead to keep us going.  Everyone I know around me has been getting offers.  I do enjoy the information we all our sharing on the thread.  I am happy to hear so many people doing well.  The different industries and perspectives are very intriguing.  I wish they would add a push notification as soon as an offer posts.  I hate checking all the time and constantly being disappointed. 

[Fitnessgirl]

I'm at 80% paid off for my 2nd loan. 1st loan was paid off at 55% before i recieved the 2nd loan offer, which was double the amount of the 1st. All markers are green and every time i contact square they mention the same generic script about algorithm and that loans aren't promised. One thing that stood out to me was them saying that "Most sellers repay at least 3/4th of their loan before receiving a new offer. This timing helps to ensure a significant portion of a new loan can be used to reinvest in your business directly rather than repaying your existing loan balance". Which made me think that if I'm not receiving anything now maybe it's because my next loan offer is low which means my current loan "debt" would affect this ratio. I'll keep processing but it is discouraging. I did connect my bank after the 2nd loan, as it was suggested for better offers but i don't know if this affected my chances instead. We are doing a business expansion and the funds would be so helpful. I'll also keep yall updated on if anything changes for data purposes.

[Breebree89]

I know how you feel @Fitnessgirl. Same thing with me. 1st loan was a small loan I was fine with it to show I could make the payments, 2nd load offer I got after only paying 50% off it was a double the amount of the 1st loan, Now here I am on my 2nd loan paid 70% off and no offer. I did call and talk to someone Monday and they said well you’re not far from the 3/4 repayment but that doesn’t mean you will get another offer. This is my slow months June and July thankfully I’ve been busy this month so far and have had good processing volume with payments. But I’m hoping I can get an offer by the end of the month come 1st of July I will definitely slow down till the end of the month. I’m a hairdresser for some reason when kids get out of school here in Alabama parents slack off with getting kids haircuts. You would think as hot as it is here it would be different. So when school lets out end of May to last week or 2 in July is usually my slowest. Come end of July and August I’m wide open. August is usually my busiest month out of the year getting all my bay bay kids looking good for back to school. 😂 Just know your not alone I’m in the same boat with you. I will keep you updated if I get one after hitting 75% but I don’t see it happening. Also I swear it’s taken forever to get to 75% I feel like the more I process the longer it takes to move from 70% to 71% and so on. 🤣 Good luck hopefully soon we will see something. 

[Fitnessgirl]

I feel you on all of that lol 😆 I'm in the fitness business and things slow down in the summer because the summer is the finish line for most people. Everyone wants to be "summer ready" but most don't want to keep up the maintenance in the summer 😫.

luckily we are changing our business structure to charge on a monthly basis to hold people accountable year round with the goals they tell us they want. This will hopefully create more steady and increased income. And them percentages on those loans be inching 😩 but slow motion is better than no motion 🥳 

[kyablonowski]

I am feeling the same thing : (. I had a loan last year for less tah half of the newer loan I receivd in Nov 2023 when they paid off over $7000 to give me a loan over twice the size. I understand I was processing a good amount to receive that but I am obviously doing well eneough to get another loan when Ive repaid my current loan to 77% in only 7 months min pay due is over $2000 every 60 days and Ive never missed a payment or been late. in fact ive been early to reach that goal every time. Currently have over $8000 to repay but would have thought a new offer would come and pay that off like every other time over the last 10 years.  So upsetting to me its our slow season here too in FL and I have come to rely on this as my "business partner" and they dont seem to respond to my needs right now. Square as all they do is offer generic reasons yet it has to have some manual human evaluation since they never offer loans on holidays or weekends. Seems like they control all aspects. Just wish it was consistent. I could really use the loan right now! Was planning to stay with Square but will see how things work out.

[Toripori]

I’m UK based, there doesn’t seem to be many of us posting on here about loans! I’ve been 100% paid off my 1st loan since mid April and still no second offer! I can’t check on how I’m doing as I just get a blank page saying I’m not eligible, I haven’t been able to check my stats since December which is disappointing to say the least. My turnover is up on last year from when I was originally offered the loan, a square customer since 2019 so a good history, I can’t understand why another offer hasn’t appeared? Are there any UK based businesses here willing to share their experiences? 

[Twpchair]

I think I would reach out to someone first regarding not being able to see anything 😕 my last offer I saw on loan page and boom it was there. I never received an email until I accepted it! I would hate to have you missed out because of not seeing it! Mine usually is on my profile when I log in but you technically support to get that running correctly first and then ask them (I know wrong department) hopefully they will say I'm not sure we don't know that information but let me transfer you to the loan department ok. I look there before anywhere else and you need that working. Who knows if you can't see anything and no updates at all I'm not sure how the algorithm system would pick that up? It's almost like you stopped processing cards without updating. Good luck with it! Definitely get that up and running and go from there. I would say imo that's why you're sitting there in idle mode. Good luck and please keep us posted!

[Healthyketo]

98% and still no offer. 😣 All metrics are all green and good standing. It’s so frustrating but still hopeful for 1 soon. 🙏

[Tng87]

I made a prepayment which was a big chunk of my balance due on my loan, but did not pay it fully. That chunk cleared in my bank but is still pending with square. They just offered me a loan but they are also trying to pay the pending payment and the balance left with the loan offer, if I was to accept it (which remember cleared through my bank already). So I wouldn’t get the full amount of the loan..so would they owe me that once it clears? I’m so confused. I want to wait until it clears on their end and wait for another offer, but read where that offer will disappear and I’m not promised another one. I don’t know what to do. Help!

[Laurie_]

Hi @Tng87,

Thanks for reaching out with your question!

Square Loans have generated considerable interest in the Seller Community, and there's an active thread dedicated to these discussions. I'll merge your post into that thread. Feel free to explore the Best Answers within the thread to hear from other Sellers.

For any specific questions related to your current offers, you will need to get in touch with the US Support Team at 1-855-700-6000 between 6 AM - 6 PM, Monday - Friday, Pacific Time.

[coolcoffeecrumb]

I have been 100% paid off since 6/8 and still no offer.  5 loans with them so far, all metrics are green as well.

[Ann14]

Was your loan high ? 

[Fitnessgirl]

Getting pretty good offers elsewhere so I'm tempted to make the full switch over to the other payment processor, but I'm holding out hope here cause i really do like doing business on Square. At 81% on loan now and doubled sales this year. 

[kyablonowski]

Im feeling the same way. Over 10 years with Square and have relied on the loans every year (sometimes twice a year). The last loan came in November 2023 when I was only around 60% paid on a loan and they gave me more than double the amount and Ive paid 77% in 7 months (almost $30,000)! I cant believe I havent been offered another one yet we are in our slower months and we could really use it!!

[Jjpainting]

What other apps/sites are you using for offers?  I was thinking of switching to stripe. I made an account with them shortly after I did with square.  I made these accounts just to process card payments. I honestly didn’t even know about the loans they offered until I got my first offer.  I’m 80% paid off on my 4th loan now, which i feel that getting offers of only 11% of my yearly card  processing sales is too low. I pay them off in usually 6 months or less which makes them very costly. If they made it where it takes the full 18 months to pay, that would be so much better but I understand why they don’t. 

Anyhoo, I have never used my stripe account, cause I just made it to compare it with squares layout/ease of use, and I like the setup of square so much better than stripe and PayPal so I’d hate to change. But yeah, getting my last loan offer at 66% (November 2023 and 80% paid off, with 70% of that being paid off since march as January and February are my slow months) and the previous loan offer prior to that at 79% paid off, I anticipated on an offer somewhere between 66 and 79% paid off. 

So yeah I was just wondering where you are getting these other offers at, and how much are they offering based on yearly processing sales. I doubt I’ll switch, as I do like everything else about square, I just wish these apps could just offer some sort of loan as soon as you hit like a set percentage of the current loan being paid off (and as long as your business is continuing to grow and alll eligibility factors are green). That way you can plan better on future business growth, spending, expansion, ect.   The fact that it’s just 100% random, and having no clue when that offer will magically appear, makes it hard to plan on doing things you want to do to grow your business. I want to get another work truck for my employees to use, I have contacted a marketing company and set that all up, just need to make the payment to begin that, which is not cheap.  I don’t use loans for anything other than ways to grow my business, and not knowing when I’ll be able to afford said things is frustrating.  

i just think that if you reach that 75% paid off percentage in 6 months or less; and you’re in all green, a loan should be automatic if you’re business is healthy 

[Twpchair]

Besides a handful of people reporting 70/80% paid back, it's trending higher % paid back to you will see many completely paid off. Unfortunately, all you can do is keep processing and watch you're loan section for an offer. Hopefully it will come soon! Good luck and keep us posted!