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]

Please 🙏 🙏 tell me you have received an offer? I have had a horrible month personally or with my family and have been trying to get on as much as I can. There's 3 I'm watching and now down to 2! Good news only ok. 

[Healthyketo]

I WISH I can say yes but nope not yet! Hopefully soon! Lol I’m just living on a prayer at this point 

[Bonzy2010]

so do most of you usually get an offer like well after the numbers update for the day or do some get it during the update? I'm trying to see what the consensus is because I never really paid attention to when the offer would come in vs the daily update.

[photoguy2019]

For me my dashboard usually updates around 3-4pm and the offers usually come in later around 6pm

[Fromwithin]

How can you tell the time your dashboard updates?

[Bonzy2010]

if you currently have a loan in progress..look under the "Loan Repayment" line and it says when it was last updated with a time stamp. If you are paid off then someone else might can answer that if it is even there where it would be at.

[Twpchair]

Hello, mine ALL come later. I updated 1-3 pm Eastern time. All the offers I've  had since the metrics came into play all have been Saturday night after 2-3 busy days, and Thursday is pretty much identical. My range for % paid back was 84% 91% and 69% this last Thurs? Offers 1st one, same as last offer. The 2nd one at 91% was 1k higher than the previous loan, and last was double of my highest offer. 

[Twpchair]

Yes, after you update (mine 1-3 pm Eastern) offers 7-10 pm 

[ohboi]

Finally got a loan offer after waiting for almost 3 months. Was 100% paid off and in food industry. It was 1,200 less than previous offer

[coolcoffeecrumb]

SUPER CONGRATULATIONS!!!  You have been paid off for almost 3 months?  This gives me hope as I have been paid off for 2 1/2 months.  May I ask what industry you are in?  I am in the restaurant industry.  

[Twpchair]

Food also 😋 

[PFS36]

Hey! You still got one! Congratulations 🎊 

[Healthyketo]

Yay! That’s awesome news! Congratulations! Send some positivity our way! 🙌🏽🙏

[Twpchair]

Congratulations again! I'm so happy to see this this thread start to open up  

[Tyconcrete]

Well I spoke with a so called  loan specialist at square  .unfortunately same old things you can read up on is all the give . Very frustrating to deal with it no reason to why just there algorithm they say .lol but happy that others are getting loans pray for more people get them that need them fast 

[Twpchair]

Definitely, nice to see movement! And let it continue! Scrolling up there was 2/3 more in a day. Still need to clear some of this board. 

[ohboi]

I’m in restaurants! I thought they forgot about us lol

[coolcoffeecrumb]

Oh, now I have a lot of hope!!!!  I am so excited for you!!!  I thought they forgot about us too!!!

[PFS36]

Whew! I was thinking they didn't love us anymore 🤣

[Twpchair]

Hello, you are food as well? Do you have a restaurant type business or food truck? I'm in Central Michigan pretty rural, and our mom and pops restaurants are just packed every day all. We have 3 that's it, I'm really rural 😆 🤣 and the opposite side of town where I am is fast food 5 of them coming from right there is 3 major interstates all conversing into town, going up North or down towards Detroit. Besides the weekends, our locals flood our small hometown restaurants. What's killing us is our hometown grocery store both closed in less than 6 months after aldis, Save a lot, and Walmart moved in all within 3-6 mths of each other? I'm just curious how the market was for the food business is all. I kinda had my eye on a food truck just to put in our parking lot at our business. 

[Jjpainting]

Hey a fellow Michigander. I’m based out of walked lake but 95% of my business is in Ann Arbor. Don’t really have a point to this just saying hi to a fellow Michigander lol