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 

[Twpchair]

Congratulations and thank you for the update! So just about one week from the offer to deposit. I'm sure that will vary a bit on what day of the week you receive an offer. 2. Not a ton of documents they needed. Seemed pretty easy to use and upload information going off your post. Just trying to get a better feel for the next group of offers or if it is a new daily thing. I am 100% sure imo 😆 that you guys were the test. Batch and see how and make sure no bugs along the way. The only thing I saw was the the waiting on Square to verify the account. Hopefully, they can work on that going forward and speed it up. Honestly, compared to a big bank it's about that long if not longer if the board has to approve it. We might be looking at the future here for loans???? 

[Jjpainting]

Unfortunately that has been squares policy thing for manual bank verifications for years. I read posts from 3 years ago saying up to 4 business days. Square send me an email saying it would be end of Monday but it was first thing the previous Saturday morning.  They sent and received the 1 cent the following day so it should have been verified that day. The guy at pipe showed the screenshot of the penny verification.  

Now let’s hope this doesn’t mess with my square offers. If it does there’s nothing I can do, pipe came through at a much needed time for me. So that was awesome they worked with square. I wish they offered like 10-15% of your yearly revenue, but I’m sure being my first loan with them, they will only increase as they see me paying them off. 

I also think I just landed a large $11k job (probably 7-9 days of work) which is gonna be a big help.  Job isn’t for another 3 weeks but I’ll have a deposit coming this week and rest upon completion. So two good things since my lovely car accident lol 

[Jjpainting]

Also being that my last loan was so much lower, the trend seems to be that the next loan comes earlier (60-70% paid off) and is larger.  I’m over 40% paid in 9 weeks. So it won’t be long until I get a feel for squares offers.  I’m thinking that the offers won’t change, i just hope the loan application doesn’t get like denied due to this you know?  I have no problem with 25% of my card sales being taken out for loans. Especially being that pipe loan won’t take long to pay off. And if I get an offer from square to get me through the winter, I’ll be in great shape from there on out 

[Twpchair]

That is the worst part waiting for the weekend to end! Then kick back up on Monday! Hopefully, those waiting where you are which seems just about everyone but Jjpainting hopefully tonight or tomorrow morning it's deposited! From everything I've read 📖 it's the initial setup that takes the longest. I couldn't believe the amount of 3rd companies out there that work with different pos and multiple types of lending or financing. Good luck to you all!

[Twpchair]

They do! I normally slow down as well as people don't know what or which way we are going. But this year I haven't so far. I know when I see Christmas in the other stores get ready. Well, it has been and last Sunday I filled up half the store smh all week bag and bag. On Saturday 90% of sales were Christmas items already! They said it's so depressing Christmas just makes them feel good! Happy day to you then and if that works for you awesome!

[Twpchair]

I'm looking through everything and have read through their loan agreement and from what I take as im reading through it. It shouldn't go against your square loans. They (Pipe) take into consideration as a 3rd party lender what your offers range from. I guess the way I took it was you getting a credit card, a new truck they use your debt-to-income ratio, and that is why we are seeing 4k to 4,600.00 max so far. Will that adjust im guessing so as the 2 companies intertwined with each other more. It is a start a huge bridge to get businesses funding instantly (I pay mine off immediately at my credit union) and use it for emergencies or inventory at a deal I can't pass up on. All of the above is just reading others' reviews and going off of Pipes's website. I don't work for either company. Their customers are happy that BB is a good standing with them. I guess we will see! I really hope people start posting here especially now! Their example, the documents needed, to letting 3rd parties into their accounts have to be done manually anything that might help others. This was rolled out pretty quietly and it looks like us will have to keep everyone updated! Thank you for explaining everything along the way! 

[nikikostrova]

I am at 81% and still no offer.  I've had 16 loans with square.  Sales are up, everything is in the green.  It's only been 6 months since this loan was taken out.  I normally get an offer by now and don't understand why I haven't yet.  Has anyone gotten any offers recently?

[Twpchair]

Yes, there are 2 under your comment. It was pretty rough on here for a bit but there are more people posting now I just received an offer. Hopefully, it will be soon! I will be honest with you there are a good handful completely paid off and waiting and others pop in at 69% and received one. Good luck and keep us posted! 

[Twpchair]

Yes, offers are still going out daily. For the last 6/8 months, it's been a higher % paid back to paid off. A few pop in around the low 70s but if you scroll up most are in the 80s now and waiting. A couple above you I believe was 84% and 83% and received an offer. Hopefully soon if you are paying it back that fast. Good luck to you! Keep us posted with your next offer, especially at what % that helps others to see if or what its trending at. 

[Hotbear1]

Hummmmm I’ve learn one thing about square they really don’t care about the loyalty of there customers at all we are humans and there will be up’s and down days but square will punish you for slow days or days u take off shame on square no matter how fast you pay back ur loan they really don’t care at alll

[Fairestcape]

Loans appear to be calculated (and offered) based on payments made only through Square. Most of my customers (BIG companies) pay directly into my bank account, and while we invoice everyone through Square, about 90% do not pay through Square. When an invoice is paid outside of Square, we mark it as "paid" using "Other" as the payment method, but this result is (I believe) not factored into Sqaure's loan algorithm. Additionally, many consumer customers pay via Paypal (around half) and again... these transactions play no part in influencing Square's loan offers. We do get loan offers, and occasionally accept, but it is frustrating when an offer is made ("computer says yes") and a few days later the offer is withdrawn ("computer says no"). Trying to get hold of a human is like trying to speak to an alien on some planet in Andromeda.

[Twpchair]

Unfortunately, you are correct! Without the money going through Square to pay off a percentage in fees to cover the loan it appears to the algorithm that you do 10% of your sales only through Square. I see you aren't in the United States. I know each country is a tad different with how things operate and offer different products. Have you been asked to link your bank? Also, I know 1 and im sure there are multiple ones like Stripe that do your billing, inventory, booking, etc. They will directly pay to your bank but it's not instance at first. If you use Square to run all their cards and invoices as your POS it shows you and Square that all your invoices were and they are run through them. Your customers can still use their normal way of paying (except 1-2) here but that could be different there. I guess it's just how much you want to be offered loans and more of a regular basis or not. I don't know how much you make or if they offer at a certain dollar point a business Representative to you and he or she deals directly with you and I have a great one. He calls me often and no issues going on etc. I have called him and always picks up when I have terminals crash or cash register boom locked up. Tech support called in 10 minutes. It sounds like all this would help you. Good luck with all of it. I will tag a mod here and see if they can get some help with the account over there. I apologize for this being so long but I think you just need to get to the right person to help you out the best. 

[Ulmen406]

I recieved an offer via square at 82% on Friday, it says it’s waiting for approval. I’ve never waited this long for funds to be approved and deposited. Anyone else dealing with this?

[Mypeachfuzz24]

hello there, did you hear back from Square yet? and congrats on the offer!!

[Twpchair]

Was it later Friday? I'm usually a Saturday night offer and nothing moves on their end till Monday for me. Usually, Monday night deposits a couple of times it was Tuesday. Go to your current loan part where the circle of % paid back and see if that's changed to full again. Then right under it will be all your loans and see if your current one is paid and the new one added in for the total. The date should be a recent one. If so then you are just waiting for the processing. If nothing has changed I would call customer service and before the start reading the script tell them im not looking for a loan I have an offer from a week ago! They might have to push it through manually. if you call today and get it all done funds usually should hit overnight. If not you know it's coming Friday night or Monday the latest. But look at the first steps first. 

[Healthyketo]

Just received my funds from pipe. Thank you again to whomever it was who shared it with us. Could definitely put this to use. 

[Paulynne]

Glad I could help. 

[Mypeachfuzz24]

❤️❤️ so thankful for you!!!!!!!!

[heavenleebbq]

Thank you!!  We were successful through Pipe as well 

[Twpchair]

Congratulations 🎉 finally!!!! Now, come on Square, and pad that cushion!!! I think you're the last one I've been waiting for, unfortunately, Square is the one I want to see! Congratulations again!

[Twpchair]

Congratulations!!!!! I am so so happy for you! It's been a journey hopefully this kicks in something from square too! It looks like about 1 week exactly so far! It's 4:06 am and I could do the happy dance for you! Thank you for keeping us posted through everything!