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.

[MayaP · Accepted solution]

Thank you for reaching out and sharing your concerns. We understand your frustration, especially given your long-standing relationship with Square and your excellent track record with previous loans.

There are several factors that can affect loan offers, and while it sounds like you have met all the typical criteria, there may be new processes or other considerations at play. I would reach out to our Square Financial Services Team if you have any further questions. They are available at 1-855-700-6000 Monday - Friday, 8 AM to 8 PM CST. 

[VanKalkerFarms · Accepted solution]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[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.

[Minion]

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@brunch1 wrote:

But it does meet all the other metrics as shown in the dashboard. That’s why everyone here is upset and/or confused. The information we are shown isn’t matching the actions you describe as being eligible. 

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I really hope/wish that Square would do away with those metrics in all honesty.  My opinion of those "metrics" is that they were intended for a "general" (maybe even extremely general) guideline.  I think many sellers obviously see those as all green, and then based on % paid back are waiting for the loan to come in.   I don't believe those are useful, and then just causes more chaos, stress and let downs in the long run.  

In the case of the loan, I think just the % paid back would be sufficient and if an offer comes in it comes in. 

As for the generic responses, the mod staff  here and even support is probably honestly all that they do know, or are able to share.  I'm assuming its of some type of property algorithm that probably only a handful of people truly know how it works.

This is all just my .02 and could be completely off .  With all of that said though, there are the benefits of these loans depending on the situation of sellers,  No credit check, no hard pull, minimal (0?) paperwork needed.  

I hope you do receive an offer here soon though, maybe within the next few days being so close to 100%!

[Twpchair]

I agree 💯 with you! It has only caused more confusion if say you're at 90% or a few on here now 💯 paid off all "green metrics" are booming but no offer? Is it just a tool for us, the customer, to know what is going on with our business than great. But with how it's worded, it comes across as this is what makes you eligible for a loan and not just a tool or feature for businesses to use and work on. This might be a great question to bring up in the super or stellar site. 🤔 I'm the type of person who I just want to know type thing I'm a grown adult and just give me the facts and truth and I can go from there. I try to encourage business owners to try their banks as well. I belong to a small credit union, and years ago, I got a business line of credit. I understand now it's harder all lenders are holding tight, but if you have a good relationship with your bank/ credit union, it is a great thing too. I didn't pick Square out of Blue in 2012. I did research, and their biggest plus was you swipe it, and at the end of the day, it's in your account. Other businesses or POS not the best reviews or for a cheaper % you got a weekly deposit? Hmm, you're banking my money and making interest off of it when I could with Square? They have never not once ever deposited my money, and that's a massive plus. The rest are perks we got used to, and unfortunately, it clearly states not guaranteed. Thanks for jumping in and helping with questions. 

[Minion]

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@Twpchair wrote:

Is it just a tool for us, the customer, to know what is going on with our business than great. But with how it's worded, it comes across as this is what makes you eligible for a loan and not just a tool or feature for businesses to use and work on. This might be a great question to bring up in the super or stellar site. 🤔 I'm the type of person who I just want to know type thing I'm a grown adult and just give me the facts and truth and I can go from there.  

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All of this Exactly ^^^   I know I've mentioned my hatred for those metrics somewhere else, but I just can't remember where exactly that was. 

I've taken out Square loans before in the past.  With my business, its a large 60/40 split between cash/check and then card.  So I can extend the loan out to the 12+ months vs the average of probably 4-6 months.  Makes a huge difference in the "APR" so to speak.

Yes , if they even added a temporary wording like "These metrics are for illustrative purposes only, and do not guarantee eligibility when green" would at least keep peoples hopes level and down to earth.  

I hope everyone gets their funding.  But in the mean time, take some of those sales %'s if you are paid off, drop in a squares savings account for a rainy day. Keep cranking out sales, putting some aside each time and maybe the loan gods bless them with offers.

[Twpchair]

I tagged you in our weekly thread with Max to see if there is something that can be done about the wording.

[Healthyketo]

I agree, I don’t know how many times I’ve emailed square and have gotten the same generic response through email. Well, my account was updated at 2:40pm cst today and no offer. Going on 5 days paid off. Guess the waiting game continues. 

[Blockhart]

Have you had a new offer yet, I’m day 6 paid off - this is my second paid off loan, it was paid 8 months early. And everything is green. I don’t understand why I haven’t gotten a new offer yet.

[Healthyketo]

Nope! Nothing! Going on 7 weeks paid off all green metrics up from previous month and still no offer. I’ve been so disappointed with square. But what can I do other than just keep waiting patiently.!😭

[Blockhart]

That’s so frustrating 😭 I’m so sorry. I’m really needing a new one now so I was hoping you were gonna say something different 😩

Keep me updated if you get a new one, I’ll keep you posted with my updates too and if I get a new one or not! 🤞🏻🤞🏻 here’s to hoping we both wake up tomorrow with new offers! 😭

[Healthyketo]

I need one to! I will definitely keep you updated. Hoping you receive one soon! Praying for all of us! 🙏

[Twpchair]

I was so hoping to see you get one! Ughhhhh, I have been gone for a few days, and wow, what a hot mess! I scrolled before commenting and went lurking on other sites. Almost word for word from other sites. They are all leaving theirs to come to square or other places.

[thehealingplant]

Happy 4th friends (for those who celebrate!) Wishing you all the best and continued growth and success.

[Twpchair]

Happy 4th of July to you as well! It would be a great day if everyone waiting got approved today! Enjoy your day if you are off. 

[Healthyketo]

Happy 4th! Continued prayers to those waiting for an offer. 7 days paid off hopefully 🤞 my offer comes soon! 🙏

[Twpchair]

Happy 4th to you as well! I hope you can enjoy your day!

[Jjpainting]

I’m hoping it to be a good holiday today with a loan offer.  Past 3 days have been huge in sales for me, taking me from 78% paid off on my current loan up to 85% now and will be at 88% tomorrow. Hoping that will be enough to trigger one. 

[BodyLabPhilly]

At 85% paid, hoping that an offer comes soon.   Good luck to everyone that is waiting 

[Jjpainting]

I hit 85% yesterday as well. Had a busy few days and my loan just got reviewed a bit ago.  Hope an offer comes tonight. I’m not counting on it, but would be nice. 

[Healthyketo]

Updated a few minutes ago 3:35pm cst to be exact and still no offer 😣 today marks 1 full week paid off. I’m losing hope. But still hanging on. Hopefully someone gets one soon 🙏

[coolcoffeecrumb]

I've been paid off 1 month on 7/8, all green metrics, no new offer.

[Healthyketo]

Wow! I hope you receive one soon. 

[ohboi]

We’ve been paid off 1 Month and 1 week. Heavy card processing with all green metrics. No new offer