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.

[Tyconcrete]

Restaurant here as well sitting at 86% .and all my metrics have never been anything but green .only one that's not is loan repayment  it has always said in progress. But never had needs work on any of them .and no new offers. Past 6 loans always came in before 80 % .smallest amount I have gotten was 16k and never one lower always bigger and current one was 78k have just 10k left on it so .it's very frustrating 😕. 

[PFS36]

We're on our 2nd loan at 15500.00. Almost paid off in 5 months with 1300 left to pay at 92% . Seems like they'd offer a loan just to keep the industry strong, but apparently "the algorithm " doesn't care.

[Bonzy2010]

85% now still nothing..I've resigned to the fact that it probably isn't coming until after I'm done paying it off and then have to wait a bit longer after after seeing all you guys at higher % or paid off. sucks that this is the new normal for it but hoping all of you get it soon so that at least it would mean a better chance for me. Higher % I see you all hit means higher I'd have to get the way it seems nowadays.

[brown17]

This happens to me often as i dont take daily payments.   Ive inquired with them before and they assured me that how businesses work is taken into account and not to focus to much on it.  I did see down the thread last week i believe someone get an offer with theres saying "needs work".    

Currently ive doubled my processing volume in past 45 days but sitting at "needs work" as didnt take a payment on friday.    Im at 55% paid on previous loan received at end of may. I know i have at least till 62 % (lowest percent ive been offered a loan)   last loan was at 86%.   But like i said ive doubled my typical processing volume.      

[Twpchair]

Yes, there's been a couple with needs work as they are closed 2 days in row. And the other I believe he said he's in construction and not everyone pays with square and they take that into account if he does 2 only a week or 3 they are large payments. And his always is red in card volume. He said he usually gets 3-4 offers per year, depending on the winter. Imo maybe they do take it into factor a certain percentage, but again, imo it has a lot to do with your history. Your time will square, and charge backs are big as they take time and money. Most that's going on now, unfortunately, isn't you or me or the next guy. Square has shareholders to answer to, and when lenders of all sectors are tightened up, it trickles down to us. I'm hoping that with the Feds indicated no raise in the rate and the market is holding tight, they will loosen up a bit. Good luck to everyone waiting, and hopefully, soon, it will loosen up. A lot of people are really holding strong, and it's rough out there. 

[photoguy2019]

Mines is a little similar i am currently at 59% and i have got them at 60%, 62% and 65%. I will keep everyone updated as the next couple days will be busy for my card processing. 

[Twpchair]

Unfortunately, as you see, the percentage is running higher than previously. It's been a rough summer hun. Hopefully, it will break soon. I know so many are holding tight for one. Good luck to everyone waiting for an offer

[Rez24]

I thinks time for me to move on from square now!! 80 percent paid off i use to get offer at 70 percent. I think Clover is who i will be switching to once i pay this off.

[Koleen1234]

This is so crazy. 
I cant believe how many of us are waiting. Never in all my 10 loans have to wait this long 

[Healthyketo]

Let’s hope for some movement today! 🙏🙏 paid off for 2 full months sales are up for the day, month, 3 months still waiting for an offer hopefully my day will be coming soon. Best of Luck to all of us waiting! 

[BWcreamery]

So sad to see you still waiting!

Today makes 1 month paid off for me. All green, still nothing here either. 

Hopefully we see something soon!

[PFS36]

That is just awful.  I don't understand what is going on with yours.

[Healthyketo]

I have no idea either our sales have only went up. I have called multiple times, spoke to someone in loans, spoke to my account manager to see if there was anything I can’t see on my end that would be holding me from receiving one. They all say my account looks good and they hope I receive one soon to lol so I just don’t know. It’s like playing bingo. I hope my card wins soon 🙏🤞 

[eatMoroccan3119]

Restaurant business here. Our last loan was 64k and we are 86% paid back now. 

Was offered a new loan for 31k on Saturday evening. Just applied to accept it this morning. Will update when approved. 

This offer was half of the last one, it seems because our sales have dropped 25-30% the past 4-5 months. 

Also my personal credit was not that healthy due to high credit card debt, though this is not a factor in loan eligibility, I'm not sure if it will affect the approval decision + the slowed sales numbers.  

I will update you all. 

[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!