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.

[Bonzy2010]

congrats! glad to see a fellow restaurant getting an offer..keep us posted about the approval process, I am in sort of the same boat with sales about 10-12% lower compared to last year's.

[PFS36]

Awesome! Thank you for the update!

[eatMoroccan3119]

So got an e-mail Tuesday morning ( new offer came Saturday evening) asking for ' more information' - they asked why the applicant's name is different from the account owner's name.  We have had almost 10 loans now with Square and have only been asked about this twice, and every time we applied it's always under the manager's name, not owner's name. 

Hopefully this gets approved quickly with no issues. Also they have asked as well why we did several bank account changes. I explained that we switch deposit banks sometimes depending on time of year because we want different expenses/funds in different accounts. 

Will update. 

[PFS36]

My loans page keeps saying  "Oh no, something went wrong. Looks like something on our end" 

[Koleen1234]

I saw that too 

I wonder what that means 

[PFS36]

It came back.  No offer. 

[bsa77]

Square has been through a lot of changes this year it seems like. I am about to say my Fairwell to them completely. I have had numerous loans, paid off early, never late, stellar progress and no loan in site. Need Improvement on my volume?? Their algorithm is complete nonsense. I started using a secondary platform for our everyday sales. I told myself if I didnt get the loan offer that I feel deserving of after years and years of commitment to square with the volume and account status that I would pull out fully and move on. In the final week and if it doesn't come we will be leaving the square community!

[Twpchair]

I'm sorry to hear that. 😔 I know we get used to something, and boom, it changes. I jump on multiple other pos sites and reviews, and they are all saying the same thing.  A few were very upset as Reps promised them immediately a loan, and it doesn't work that way. I read their loan section, and it is 6mths - 1 yr of establishing a business relationship and how you process and it's history and they went from 55k square loans to 1k loan. They had to work their way up just like we did 10 plus years ago. They were devastated. I never would tell anyone how to run their business or who they should use. That's your decision, period! I just wanted you to know it's not just square pos have lenders to answer to, and if the economy, stocks, and interest rates aren't steady or going down, it affects us too, unfortunately. I wish you the best in your tough decision. I'm old school if it ain't broke don't fix it! I know with Square I swipe that card and my money is there about 5:05 pm every day. And I learned a long time ago that reps promise the world and boom gone. The grass might not be the greenest right now but I do believe it will loosen up. 

[Koleen1234]

I feel the same way. I have been with square for years and have had over 10 loans with them 

This just seems ridiculous at this point 

[Twpchair]

It does, and I understand that. I could guarantee an offer at 70-75 % since last June I noticed that the trend was changing and it hasn't changed. Most are higher percentages paid back or completely paid off before the offer comes in. Right above your post, @TheRealChipA said it best we can go off of. There's a lot going on behind the scenes, and things need to calm down and stay steady. Hopefully, it will loosen up soon. Good luck to you and I hope an offer comes soon to so many waiting. 

[Fpfl21]

I’m at 83% paid on my current loan, and I’m getting really discouraged as to a new offer coming in. This has been paid back very quickly in reference to the other 2 I’ve gotten.  I’ve never been late, always paid early— all green in metrics. If anything, we’ve been processing A LOT more especially since we are open 6/7 days per week now. I love square, but this is really disheartening to me. Has anyone had a similar experience? 

[TheRealChipA]

Hey @Fpfl21. I can give you some insights but of course no concrete answers.  

First, loans ARE going out.  I’ve gotten a half dozen offers in the past few months, and I know others who have.

Second, almost no one with a current loan is getting new offers at 70-90% currently.  This has been the case for well over a year and I don’t see it changing anytime soon.  Why?  Because if you read the news, or follow the financial journals, you’ll see that all lenders are being very conservative about how much they have on their balance sheets.  Rates with the Fed are still high and will only come down slowly.  There is talk every day of a looming recession, which I think is crazy since the signs for recession just aren’t coming together.  But markets don’t like that kind of talk.  The point is Square is not the only lender who is holding back.  I’ve seen sellers here waiting until the 90% range to get a new offer, and more than a few who completely paid off their existing loans and then waited a while before a new offer showed.  This, as they say, is just the way it is.  The lending market is being highly conservative and cautious.  Hopefully, that will change soon.

One more thing.  This year I realized that my cash flow and sales were more than sufficient to qualify for a traditional Line of Credit with my local bank.  I applied — solely on the strength of my business credit and profile — and was approved.  Many of us find here that there comes a point where the Square repayment terms (which are, after all, merchant cash advances and not traditional loan terms) just don’t work for us or make financial sense.  It’s not the fault of the Square Loans — they serve their purpose quite well and help lots of folks getting started.  Anyway, I found that it was a good idea — and finally time — for me to move on from Square loans and find something with more traditional repayment terms, etc.  I’ve learned from my decades in business that it’s never a good idea to rely on just one cash/funding source.  Trying to have a few options we can draw on when we need them is much less frustrating.

One more thing.  It is a common misunderstanding that the loan status screen (all green, etc) is a guarantee of a loan offer.  That screen is only meant to highlight issues that might get in the way of loan offers once the algorithm decides that it wants to send us one.  But being all green doesn’t mean anything else, and nothing else should be read into it.

The lending market is probably going to loosen up soon.  It looks like the Fed is finally going to start lowering interest rates which will be a major help to all of us.  At this point, patience is about all we have on our sides until this happens.  Since the feared recession did not happen, there is reason for optimism.

I wish you well. 

[Twpchair]

If you read through yes, it's trending higher percentage paid off or completely paid off. A few jump in around 70s but not too many. Lenders in general are holding tight right now with the Feds raising or not raising the rates,the market has seemed to mellow out, and all that plays a factor. Lenders have shareholders to answer to. Unfortunately,  that affects us and our offers. We are all feeling it, and it's hard when us customers are doing record sales and yet still waiting.  I hope it breaks soon, and we can all get back to normal and on track. Congrats, though, for doing so well and keeping it  rocking!  Don't give up. Just keep doing great things, and I truly wish you the best and everyone waiting ❤️ 

[PFS36]

Yeah, we kinda gave up on getting a loan. We're about a week and a half from opening our new location and we'll be swamped . Our projections show us at 500% business increase,  so Square would rack up.

[Healthyketo]

I’ve given up to. I stopped checking the dashboard daily. Just feel like it’s going to come when it comes. (If it comes at all) lol 

[Swain]

Just got an offer!!! 85% paid off. A little less then my last one but thankful 

[PFS36]

Congratulations!!! Which industry?

[Twpchair]

Congratulations!!! So nice to see! They seem to run a little under or about the same as the previous one.  I am happy for you, and I hope you kicked off a trend

[PFS36]

It's been quiet here lately.  Either everyone has gotten a loan, or they're making so much money that they aren't concerned with it. I hope it's both!!

[Toripori]

Neither! Still waiting and as the UK is finally having something that resembles a summer it’s got very quiet! No offer, can’t check metrics, feeling completely in the dark and like I’m being stringed along with the vague promise of keep processing to qualify. I’m already up on last year, and hugely from when I received my first loan, always met my 60 day minimum payment within 10 days. Not sure who else in the uk offers loans like square do or else I’d leave!

[Twpchair]

It has been quite this week. I know we've been extremely busy this week and weekend with the holiday and Amish Festival going on. It's been crazy. Hopefully,  people are just busy! Also, not everyone posted that they received one. Just pop on to see where or what is going on with others. It would be nice to just let others know.