This is just my couple quick observations on Square Capital. I do not use it currently nor have I in the past, but I have seen it since its inception. My business just doesn't work with the Square Capital model as the retail side of my business is very seasonal and 98% of my income is in 2.5 months with 80% of that in 1 month. I have Revolving Lines of Credit at a bank that serve my needs and are dirt cheap to borrow against for a month or 2. here are some of the questions/statements that pop up frequently.
Is Square Capital closed and not giving out loans anymore?
Yes, Square Capital is still giving out loans and still in business. In the Square’s last financial Quarter Square Capital approved loans to over 47,000 businesses and those loans totaled over 305 million dollars ($305,000,000)! I'd say that is definitely proof that they are in the business of giving out loans. That is a lot to be giving out in 90 days. Break that down and Square Capital is loaning out almost 3.5 million dollars a day.
Where are the exact requirements for Square Capital?
Yes, it sucks that there isn’t an exact statement of what is needed for Square Capital. What do you need to be processing per day and other ratios and variables? There are multiple banks on the back end and Square between the end user and the money and there are multiple contracts between all those that can prevent the details from being shared on what the bank wants to see. I think the general idea is out there on what is needed. I personally don’t think Square Capital folks are sitting back and laughing at all the people who want to know more information like its some game to them they are playing with pawns. With big contracts and high dollars being loaned contracts are tight and their hands are tied, and they give as much info as they can.
Square Capital has to give me money, I meet all their requirements, I think.
Square Capital is not a right you have to get and should not build you Business model on it. Square Capital doesn’t have to give money to anyone even if you think you qualify. You may have gotten 4 loans before but now you aren’t getting one, or you may never have gotten an offer, but if you are handling enough to get these loans you should be able to go to your local bank and try to get a Line of Credit or loan. The bank’s process may/will be super frustrating too, they're not going to just throw all their exact requirements out as it is based on lots of factors and your Credit Score. but you need to have multiple options for your business to succeed so having a line of credit and possibly a Square Capital loan are great options.
I paid off my loan and now I don't qualify.
If you think about it it does make sense that your account would be flagged as to why you had an influx of money to pay off your loan.It is a very similar idea when you apply for a mortgage that they don't want to see an account that has $50,000 in it and it is all from the last month and was a $0 balance before. there is not a reason to pay off early as you have already been hit with the interest as a one time fee so paying off early saves no money, unlike paying extra on your mortgage which does save you lots on interest, they are 2 different business models.
