Hey there @Grooming. That’s never a good surprise, I’m afraid. I’m sorry to hear about this. I can give you some insights.
The biggest factor that the algorithm uses to determine loan amounts our recent card processing volume trends. Note that card processing volume is NOT the same as gross sales. Since loan repayment comes out of our card processing funds (not cash), if our card processing volume is trending flat or downwards (for whatever reason) our new loan offers will most likely be smaller. So, if more customers are paying with cash right now than in the past, for example, this can affect new loan offers. Also, Square loan offers are designed to be reasonably paid off within 12-18 months, with the ideal payoff window being around 12 months. Square does not want to help us get into an over-extended payback situation where the daily repayment rate is actually negatively impacting our cash flow.
Having said all of that, sometimes waiting can result in higher offers. Every few weeks your loan offer should be renewed. I’ve seen my offers go up and down over time, and it all seemed to be based on my card processing volume trends. However, if for some reason your card processing has been down or flat for an extended period recently, I wouldn’t expect the offer to be changed much or quickly. It will take time to establish new trends.
I believe there is a way to add our brick-and-mortar bank account to the loan dashboard eligibility page — the page that shows our progress in satisfying loan requirements. If you are doing significant sales that are not completed in Square, and/or significant cash sales, that might help increase your offers. But, beware that doing this also has the possibility of decreasing your offers, too. There are no guarantees.
Lastly, here is a link with information about contacting the Loan Department directly. They might be able to offer some guidance or information, but be aware that they can not control the offers or change them in any way.
Best,
Hey there @Grooming. That’s never a good surprise, I’m afraid. I’m sorry to hear about this. I can give you some insights.
The biggest factor that the algorithm uses to determine loan amounts our recent card processing volume trends. Note that card processing volume is NOT the same as gross sales. Since loan repayment comes out of our card processing funds (not cash), if our card processing volume is trending flat or downwards (for whatever reason) our new loan offers will most likely be smaller. So, if more customers are paying with cash right now than in the past, for example, this can affect new loan offers. Also, Square loan offers are designed to be reasonably paid off within 12-18 months, with the ideal payoff window being around 12 months. Square does not want to help us get into an over-extended payback situation where the daily repayment rate is actually negatively impacting our cash flow.
Having said all of that, sometimes waiting can result in higher offers. Every few weeks your loan offer should be renewed. I’ve seen my offers go up and down over time, and it all seemed to be based on my card processing volume trends. However, if for some reason your card processing has been down or flat for an extended period recently, I wouldn’t expect the offer to be changed much or quickly. It will take time to establish new trends.
I believe there is a way to add our brick-and-mortar bank account to the loan dashboard eligibility page — the page that shows our progress in satisfying loan requirements. If you are doing significant sales that are not completed in Square, and/or significant cash sales, that might help increase your offers. But, beware that doing this also has the possibility of decreasing your offers, too. There are no guarantees.
Lastly, here is a link with information about contacting the Loan Department directly. They might be able to offer some guidance or information, but be aware that they can not control the offers or change them in any way.
Best,
