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]

Thank you so much 💓 for sharing please 🙏 continue to!

[Twpchair]

Yes, it's higher than the previous loan. Let's keep this going!

[VanKalkerFarms]

August 1st Square shareholder letter came out with another outstanding quarter for Square Loans.  More loans than ever were started in the last 3 months, an outstanding show of commitment to the service.
"Square Loans facilitated approximately 142,000 loans totaling $1.45 billion in originations, up 32% year over year."

That breaks down to almost 1,600 loans a day (66 an hour, or more than 1 per minute). averaging $10,200+ per loan.

So yes, there are THOUSANDS and THOUSANDS of Square Loans happening all the time.  It is unbelievable that they can get this number of loans even facilitated, that is a staggering number of loans to Square customers.  It wouldn't be possible without the Square Loans Algorithm going thru and promoting offers to be given.  For every one post on here saying they haven't gotten a loan or 5th offer, 10s of thousands have gotten loans.  The service keeps growing though it may not seem like it to a user that is waiting for their 3rd loan.

@Twpchair 

[Twpchair]

Thank you so much. You are my hero! It's so hard 😫 and I wished more people used this forum so people could see and realize Square is worldwide, not just the United States. I see a couple of people from Canada and England on here regularly, and besides that, it's honestly about it. But people do need to know that even though Square is worldwide, it's still lending daily hourly etc they are a business and have share holders to answer too as well. So, if things slow from just the ones here, they have to answer to them as well.  Last year was identical so far, and boom, come September till about late/mid June it slowed down and then went crazy. I feel so bad because I know sometimes sh*t happens like the hood oven 😪 unfortunately, without having a backup like we do with a line of credit you are caught. I would be fired after the end of the day if I worked for Square because I would be like Oprah, and you get a loan, you get a loan, and everybody gets a loan! 😆 🤣 😂 unfortunately, I get to work like everyone else 24/7, I think 🤔 

[Tyconcrete]

 

[Tyconcrete]

Looks like square is doing pretty  ok this year .Hopefully the losses up on the lending  .

[Twpchair]

Yes, they do very well each year. Each year is better than the previous year, and they lend the most as well! Each quarter seems to go up and up. I know it's hard or mind-blowing, but being worldwide and Square is top rated, they really are lending each and every day. I would have to ask what percentage post here. Personally, I noticed that about 95% are from the USA, and I have seen a good amount from England and Canada. I can't say if I have seen any other countries at least posting here. I really wish more people would use the community threads. It helps others waiting for an offer. There are some great threads on here, and most just don't know it or don't use it. Looks like the books and numbers were good, and the market is semi stable. That's good, so hopefully, it loosens up in our Lil town here loanerville. There are too many people that really could use one bad. They have equipment that isn't working, leaking roof, and the other is being pushed around by big box stores stuck in the middle of 2 that moved in on both sides of hers. Let's see this bust open! Good luck!

[Checkmate]

I find that hard to believe as I've had my account now for over 6 months surpassed $35,000 in revenue 100 transactions zero disputes and everything is checked marked as good yet still says my eligible at this time that's pretty insane for them not to even offer the starter loan 500 bucks

[cmeshine]

I got an update: I posted here last week hoping to see trends in the loan processing this year.  This Saturday received our 12th loan offer, $7K less than our previous.  We were at 83% paid off, all green on the metrics.  The amount was lower than expected, not clear on why.

[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.

[PFS36]

Thank you for your insight.  We're at 89% and only in our fifth month of paying back 15,500.00 , so we're definitely ahead of the 18 months.  It would make sense if Square charged interest,  to want us to go the full 18 months.  I prefer Square Loans over conventional because it doesn't tie up credit from our bank in case of emergency or if we wanted to buy another home. 

[Twpchair]

I don't take every loan either. The summertime is our busiest time until Christmas, and then it depends on the winter. Congratulations again!

[Twpchair]

Congratulations! I am sorry it was lower than expected. ughhhhh, but it's something, and I hope it helps! I'm just happy to see it moving forward!

[eatMoroccan3119]

We are 81% paid now on our 58k loan. Business have slowed down though at least 30-40% drop in the last few months. It's been bad in san francisco. Patiently waiting for next offer. I assume it will be much lower since the drop in sales. We'll see.

[Twpchair]

Hun, I am so sorry. Unfortunately, I'm seeing certain states just kicking it or their line of business, and others are 200% up????? I'm in Central Michigan, and for the last 3 years of 12 years, we've been maintaining or slightly higher or the same. I don't don't take every offer. Our busiest time is now, and winter is year to year. So, I freak out in the winter 🤪 

[Twpchair]

What line of business are you in? There's one on here now from San Francisco in the restaurant industry. She is not very happy about it either. The cost of food is just crazy. I don't understand why people don't understand why 6 wings or a good burger or steak has gone up! Are they living under a rock, on a longgggggg diet? It truly baffles me with that. Each week, I go shopping and up again and again. My friend has a little bed and breakfast and she has there a small cafe and a gift shop. She showed me her spreadsheet just the last 2 years up and up wings about 60% hamburger 50% I didn't see one thing that didn't go up the take out containers 50% I told her why can't you make copies of that and put it in menu? I'm watching chain restaurant's closing up weekly, and apparently, they don't connect the dots?

[PFS36]

Oof! A 40lb case of quality chicken wings goes for 130 to 175 bucks! No mr customer,  we can not do 50 cent wing night ! It's ridiculous! I'm still trying to figure out how chicken,  the cheapest food you can farm has become the most expensive.  Anyway,  food cost are up for restaurants and consumers all together.  Square has helped us small businesses during these price increases. Hopefully ours will come through so we can transition to our new, more populated area. I'll never open in another small town that doesn't seem to want to grow. 

[Sumtin2Eat]

We are now post 15 days paid off from 4th loan. Process over $350k CC. All green and have always been! We are up over 2,000% YoY and still no offer to date.

however, in hindsight without having to pay those daily fees for loan repayment increased the rain day fund.  We can still accomplish our goals however instead of instant gratification for some plans we just have to wait it out to build up the funding.

i wish everyone the best… 

[Twpchair]

I wish you the best as well! You are kicking it and that's all that matters! I'm watching big box close and guess what WE are stronger and tougher than ever!

[MrBond705]

I just received a offer.. Half of what I received before.

[Healthyketo]

Awesome! What percentage were you at?