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 

[stanleycourtney]

My sales are up from last year! I had a slow January and February compared to other years. I am at 82% and still nothing. I usually have an offer by now. 

[Twpchair]

My last offer was on a Saturday after a busy 3 days and was 81/84% paid back. In June it was 91% paid off. Following the trend it seems most (not all) are higher % paid back. I know that a lot of businesses were use to 70-75 % but right now the lending market is holding tight and watching what happens. With that said square is lending out more and more each year! Not everyone post here and it seems disappointing but honestly they are still doing loans every single day at great rates or increased. Good luck and keep watching your dashboard! 

[Movecrew]

Have you received a new offer yet? I'm over 80% now and just wondering. 

[Movecrew]

Have you been funded yet. I'm experiencing the same issue. I'm at 84 %

[Summer2024]

Hey @Movecrew! 

My advice would be to reach out to our Square Loans team about your inquiry. We are limited in account details on this platform. Check out this support article for how to get in contact with the Loans team so they can take a deeper look into this with you. 

Hope this helps.

[levelpt]

I’m at 75% paid off and nothing yet. My last third loan was offered at 68 %. Still waiting.

[Lanails]

They are not helping 

they say loan offers generate by computer 

[7767]

ive been a business member for August and have a good acount.  I want to know why i havent been offered a loan? is it brcause i have a bank that my money transferes to and not square banking?

[_Violet]

Hi @7767 - Thanks for reaching out to the Seller Community to inquire about Square Loans 👋

I recommend looking over this Support Article on Loan Eligibility FAQs. If you have any additional questions about the process, you can contact the Financial Services Team by following the steps here.

I hope this information is helpful! 🙂

[TheRealChipA]

Hi @Citystarz 

Unfortunately, there is no perfect answer to your question, nor a satisfying one.  Square Loan offers are triggered by regular reviews of our accounts and activity and when the algorithm determines it is time for another offer, one arrives.  There is nothing that we can help you do in the seller community, and Square employees won’t be able to accelerate this, either.  For most of 2023 I saw lots of similar threads here where sellers had paid off their loans then waited weeks, if not months, for new offers.

I can offer some context, however.  Even a cursory reading of economic news reveals that the worldwide lending market is being very conservative right now.  All lenders are being very cautious about when they offer loans and especially how much they offer.  With worldwide interest rates so high, all loans are very risky for lenders so they aren’t being as free and easy with them as they once were.  This is a reality that is going to stick around for a while not just for traditional lenders, but for merchant lenders like Square.  Hopefully we will see some loosening in the overall lending marking in 2024, both in the area of interest rates and qualification requirements.  But regardless I expect that it will be a very slow process.

Sorry to be the bearer of unwelcome news, but at this point it is at least reality.

NOW…… In a recent email from Square, there was this link about a new product called the Square Credit Card.  It seems that Square now has two credit offerings — the traditional loan tied to our card processing volume, and a credit card also tied to card processing volume.  Understand that I know nothing about this product at all.  I was not involved in its testing phase, nor am I currently eligible as I have a current Square Loan which makes me currently ineligible for the Square Card.  But, it seems to be an option.  I’d recommend reading the information at the link I provided and clicking on the “check offer” and other links to see if it is something that is available to you if you are so inclined.

Good luck.

[Citystarz]

Been getting Loans with Square since 2020 and usually we payback very fast 3-6 months since we are a high volume processing store. Our last loan was paid off in October 2023 and no other offer since we are green across the board on both locations not sure what the hold up is. Really could use the funds for inventory asap 🙏🏻🙏🏻

[2SONSCC]

Did you end up getting an offer? I’m at 77% with no offer so just curious to hear 

[GlitzyCow]

I’ve been paid since August 2nd. Same situation. No new offer. Always ahead. 

during the outage last week a new eligibility factor appeared above “processing volume” for me. It says it’s “account activity”. However further on down the page I also have an account activity section. The one that randomly appeared during the outage told me my account activity needs work. But the one in its own section further down the page says I’m all good. Square won’t answer my specific questions. Did you happen to have this appear for you also? 

[DinaLRosenberg]

We have an offer sitting.  We have never once used square loans and instead have a line of credit with our local bank. 

[Ccsla818]

I’ve been waiting also I’m over 80% paid off they always offer me one by like 60-70%  paid off I’ve had about 4 total all paid on time I’m green across the board I was really relying on it since every time I’m over 60% it always comes but not this time ugh 

[Bonzy2010]

same here, at 84% usually offer by 70-75% and nothing yet

[NRVGuru]

Reached 86% paid, and am looking to move & refresh our stock for 2024. After hearing nothing all through the holidays some extra help would do wonders.

[joeyjones16]

We're at 88% and no offer yet. We have always had an offer by this point.

[Marinaradulovic]

I just hit 100% paid and no new offer, I paid my loan in 3 months and it's my 6th loan paid off. Before I always received new offer when I am around 75%, what is going on now I am not sure. I contacted them but get the same answer like here, they can not give you any info over the phone. 

Good luck 

[ddlbb]

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[Dawggos]

Square loans are awful. I've been with Square for YEARS. My last offer was 12K then this current offer was 2K....yes you read that right. I paid it down quickly in a month obviously. 

Just go to stripe. I split my processing between Square and stripe. So glad I do because I have a current loan with stripe that offered me triple anything Square has offered.