Why Ivitation Only

[islay]

Is it me, or is it unfair that we can't just apply for a loan when need be? Why is it based on processing? If I have paid off 3 loans with a great payment history, I should be able to get a loan whenever utilities prove otherwise. It's holiday time, and loans are not offered for businesses to sustain themselves. With the amount of money we spend on marketing and other things with Square, we should have free range when it comes to taking out a loan.

[Minion · Accepted solution]

HI @islay 

I can feel your frustration when it comes to the great mysterious algorithm of Square loans and their odd times for when and if another loan will be offered to you and your business. 

As far as how or why Square operates the way that they do, that is on them and their decision to base loans on processing to ensure that you are a good candidate for a loan in the first place.  They want to make sure that they get their money back so they are willing to loan out the money to a business that is showing a steady cash flow.

There are plenty of other options out there for people and business to secure loans, business lines of credit and even business credit cards.  If you choose to have it based on your personal creditworthiness business credit or a combination of both.  While this thread may be slightly old, some useful information.

Who is your business bank with? Do you have a good relationship with them?  It sounds like a business line of credit may be worth exploring, giving you the flexibility to draw funds from when  and if you need them.

With all that being said, there are plenty of positive perks about square loans that come to mind and the biggest ones for most small business owners are no hard pulls on your personal credit, very simple application process and when/if an offer is accepted the funds are in there within a few business days.  

[DinaLRosenberg]

This is great advice Dan. After we were in business for a few years we went ahead and and acquired a business line of credit with our bank. We also do a lot of our business purchasing on an AmEx which I know needs to be paid off the next month (and we do) but we get points which we use for travel.

I come from a long line of small business owners- I've seen my dad get into trouble using processing loans- so we've never taken one. I actually just went and looked at the loan offer (we've had one sitting for years but have never taken one) and it scares the CRAP outta me to dedicate 20% (1/5th) of my credit card processing to repayment. It just seems like it would start a cycle of needing to rely on the loans for cash flow since you are dedicating so much to repayment.

What I will say is the interest charged in the square loan is pretty good.. 

[marielmt]

Hi @islay !

Thanks for posting on the Seller Community.

We appreciate your loyalty when choosing to partner with Square for your past business loans. Please know that your loan history is reviewed in determining loan eligibility, but there are other factors of your account that are also considered.

Currently, offer eligibility is based on payment processing data, which means eligibility can change as frequently as your business does. Loan processing data includes your processing volume and your processing history, such as failed debits, chargeback history, and changes to your processing behavior, among other factors.

We understand that it is frustrating that we can’t guarantee that you’ll receive a new offer because you’ve had previous loans with us in the past.

Square accounts are reviewed on an ongoing basis to ensure that each business gets the right customized offer. We can’t predict if or when your business may be eligible for an additional Square loan, however, we will continue to monitor your account for eligibility. If your business becomes eligible to apply for a loan, we’ll notify you through your Square Dashboard.

Don’t hesitate to contact us directly if you have further questions or concerns.