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 

[TrendzbyM]

Thank you! I've always had an offer with this amount remaining so I just assumed it would be the same this time as well. Also hoping to get an offer little higher since my offers  are always the same amount 

[Minion]

Your definitely headed in the right direction for sure though, seeming to at least be at that "average" starting point for potential offers to start coming in.  Keep at it, hopeful for the best. 

[Ann14]

I’m sitting at 75 and patiently waiting.this is my 4th loan for 52,000 ..hoping for an offer soon since I’m moving to a new location 

[Mmccrain]

So that’s $13,000 remaining on your current loan. If they allow only 10% of the next loan total to be from a previous loan that would mean your next loan would have to be $130,000 or more. I think this is where people are getting mixed up. So even though you only owe 25% on your current loan they only seem to give a next loan offer when 90% of the new loan is actual loan and 10% is covering a previous loan. Does that make sense? 

[Healthyketo]

I was hoping for one as well. 97% now and still nothing! Hoping today will be the lucky day! 🙏

[Mmccrain]

I’m starting to think that offers may come in when the new loan would incorporate 10% or less of an old loan remaining? That seems to be the numbers I’m seeing. Also people who’ve had numerous loans seem to have steady business which is where the loans were supposed to get them so their offers slowed down. 

[Town1134]

     I used to get Square loan offer in the past when 3/4th loan is paid off. But now even at 95% paid off with all factors in Green there is no offer from Square.

  I am very disappointment that I have been giving business to Square since 2021 even though Square offers high card transaction fee i.e. 3% compare to other competitors. 

       The only reason I have been using Square is because their loan structure is easy to payoff and lower interest. But it looks like Square is not interested in loyalty of customers by not offering loan at 95% paid off loan.

   I really want to be with Square but if Square does not offer loan then I will look for another card processing company who value their loyal customer.

[ryanwanner]

Hello @Town1134 !

Unfortunately, Square's loan determination parameters aren't fully known to us sellers. There are a lot of little things that can cause the loan offer to be postponed. Your best bet is to hang tight and hopefully the approval will come sooner than later.

If the loan product is the only thing keeping you with Square, I understand your desire to seek out greener pastures--you have to do what is best for your business. Personally, even with no loan offers on the table, I have found Square's feature set to be extremely beneficial to my business. The loans are just the cherry on top for me.

I know this isn't what you want to hear, but if you search through the community you'll see a lot of loan related questions all with basically the same response as I gave you here. Best of luck!

[SouthernSass24]

Did you ever get an offer 

[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.

[ayazbey01]

HELLO, OUR BUSINESS HAS PAID THE LOAN, 14 DAYS HAVE BEEN GIVEN A NEW OFFER

[Healthyketo]

Congrats! Was the offer given today? Just curious? Been paid off for 15 days now hopefully they’re moving along today!

[Sj1976]

I’ve been paid off for 6 weeks and no offer. All green metrics. Don’t understand!! 

[Healthyketo]

I’m still trying to figure it out. I’ve been paid off for 4 months and no offer. My sales are up I’m all green and good standing and no offer in sight. Very frustrating. Hope you get one soon! 

[Jerrysbar]

Did you ever get an offer?

[Kybanjoman]

I got my offer today and paid my last one off in Oct 2024 it was 25% higher than my last one.

[mydpins]

Congrats! May I ask at what percentage paid off you were at? 

[Kybanjoman]

I paid off in Oct' 2024 I was really worried if I was even going to get another offer. It seems like they slowed down offering them here lately.

[Twpchair]

It has been trending higher for about a year now and finally starting to see some high 70s 80s every week. Are you processing every day? Do you do more invoices vs swiping cards?

[Twpchair]

Completely paid off. 

[Twpchair]

Congratulations!!!! Sorry, it took longer but that's been the trend. Wow, one great thing is 25% higher!!!! It's been 25-50% lower to the same as the last offer for the majority of course not all. Great job getting a bigger offer. I hope that keeps up!