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.

[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]

Awesome news 👏 🙌 😀 

[ApexSupply]

Currently at 65%. Hoping a new offer comes soon. I think I usually see them around 70%. Ive noticed that even though my loan amounts have been increasing, the time it takes to pay them off to 70% is around 4 months. So they definitely are helping as this means business is going up. I hope the next one is slightly larger as I have a new account this month that may require additional inventory. All in all Ive been happy with square loans. Out of curiosity, if I don't see a new offer in the next week or so and I need funds for the new account, what are some options other people have used? But hopefully square comes through for me again.

[Tyconcrete]

Well sitting at 85% so see what happens hopefully they will .send in something. 

[Twpchair]

Do you have a nice small credit union? I have been banking with my 8-10 branch credit union the day I started my business and started with Square 2012. Maybe it's just me, but about 6/7 years ago, I had a great opportunity for a good billboard, but the rep wasn't waiting for that Ole algorithm to kick in. I called the credit union to see how or what they offered for small businesses and what I needed to bring in. I got in that day and didn't need a thing it was all there when I opened my business account, and all money, cash,checks, and Square is there. An hour later done, and I have a revolving line of credit for 20k they thought I should have gone higher, but that's what I choose to have and can go higher if I need to. I don't know if just me or what I never liked or had any luck with big banks and I'm very rural and the 3 we have are big Corp Banks nope not working with them at all. I know the business owner next to me used. I'm hoping I got this right crowd funding? He opened a coffee shop and cafe. I believe if I remember correctly, it did take a few days of paperwork, and then he received multiple offers, and he picked the best one and in his account the next day. He said that now they have his information when he needed it again, 3nths of bank statements, and done and in his account that night. Hopefully, things kick in and start to open up and let that cash flow, but I know it's hard when push comes to shove you, and only you know what it is right for your business. Square loans are great, especially with keeping your credit open and available. The biggest downside is when or if you get an offer. There is no guarantee you will get one either. I know just for myself up until last year I could count like clockwork 70-75%. I knew an offer was coming in, and now no. Unfortunately, now 😕 😪 no, I do get on other forums that use different pos and loans, and that is the number 1 question what, where, and when is a loan offer coming in. We have a lot going on with the economy, Feds and the interest rate, Stock Market, I could go on and on. Square is worldwide, and they have investors to answer to. I see people here who are up 200% in sales and completely paid off and nothing. My last two offers were 91% paid off and 69%??? It's not you or the restaurant industry it's just what is going on around us right now. I really hope it breaks soon, though. I wish more square users would engage in threads it does help others to kinda gauge what is happening or going on. Good luck to you and everyone waiting for an offer. Hopefully, others will jump in and have other options for financing that I can't think of. 

[DaphySomm]

I'm sorry you're going through something similar to what other small businesses are going through. I've noticed some stats were tossed about how much in loans was given, but what they didn't tell you was to whom they were given. Square is definitely showing favoritism amongst its sellers. I, too, have excellent loan repayment history with Square. All my loans have been paid off or renewed within 8 months of receiving. This time I decided to pay off the loan and continue processing to receive a higher loan amount. Even doing that, the so called algorithm didn't do what they claimed it would. I for one do not believe they actually use a algorithm. I too am dropping square for something better. I knew this day would eventually come considering how long it takes square to meet industry standards. Look how long it took them to roll out bill pay or have a decent booking system. I hope you find a better more efficient POS system that actually values you. Square will say you are valuable but then show you that you are fodder.

[GlitzyCow]

Square will 100% not evaluate you for a loan until 7 days after a manual payment. 

[Healthyketo]

Hopefully someone gets an offer today! 🙏

[Tyconcrete]

I sure hope 🙏  cause I could really do need it. But I pray for anyone that needs one to get it .

[photoguy2019]

Yes!! Fingers crossed for new offers 🙂

[Gentry23]

This is why square is so confusing! Like the rest of the comments I am also ready for the next loan to pop through. 91% paid off. Like our 5-6th loan. Unfortunately I have tried to see what the consistency is with loans with square by reading all the comments there isn’t one. You can be 100% paid off or you can be in the 80% range and receive one. I’ll just leave my anxiety level where it is because obviously there isn’t a solution to any of it. I hope everyone gets what they are needing and all of us small businesses continue to keep on keeping on! 

[Twpchair]

What is going on this weekend in our new and ughhhhh best thread in Square a fellow business owner called it loanerville and it fits perfectly! 

[photoguy2019]

Yes it does! Haha good to see you and others keep everyone motivated throughout our stay in Loanerville. I know i won’t see a offer anytime soon at 56%  but i am fingers crossed for y’all today!! 

[PFS36]

No offer here. 90% all green.  I believe the Square Master dislikes me.

[Tyconcrete]

 you me and a bunch of others as well .

[Tk45]

I got 80., 

[Fromwithin]

80 what?

[Tyconcrete]

80 % you got a offer or sitting at 80 

Or 80k

[Thatgirl]

I feel kinda safe In saying if my metrics have stayed green, my shop and processing has shown growth since first loan offer, my first loan is 93% paid and I am not eligible....I am taking it as I am no longer eligible because metrics can't show dark green can they? 

[Tyconcrete]

Don't feel to and at 85% and on my 6th loan so 😕 😫 

[Jjpainting]

This is not abnormal. I didn’t get my second offer until a couple days after my first one was 100% paid off and I’ve seen a lot of people say the same. I’ve seen some get an offer earlier of course for a second loan. But my second came after first was 100% paid. Third came at 80% then 66% then 91%. So it’s all random and different for everyone 

[Thatgirl]

Does anyone know of the secret things that get you a new loan offer? All my these are the things stay green, I am 92% paid off I have shown growth since the first loan, surpassed last years 3 months ago. They say it's these things and then what else? Anyone know are they not doing the small loans anymore? It's ridiculous they don't let you financially plan with them, makes me want to start all over elsewhere where I might make better sound decisions other than welll..ummmm.i don't know