Square Capital eligibility

[SpoiledRotten]

I know the minimum amount is $10k/year to be eligible for square capital but is that $10k based on only credit card transactions or does that include checks, cash, and gift cards as well?

[ecantiques5 · Accepted solution]

@SpoiledRotten

This is really good question, basically though there are many & many UNKNOWN factors in becoming Eligible for Square Capital through the machined algorithm. However; it is my understanding the $10,000 per year must be in credit/debit card processing. I would assume they would count gift cards as well if the original process to purchase gift card was the result of a card purchased Square processed and collected fees on. But I am pretty sure unless they would be getting a processing fee on your check and cash payments they will not count.

Perhaps one of the Captital Team members can clarify and state exactly what method of payments exactly they look at.

But I have always understood it to be the credit or debit card sales.

Have a great new week!

[Diananarom]

I am a single company. I don't have employees. Do I still need to have an EIN? 

[ChrissyWoods]

I’m the same way and have an EIN. It was needed for me to open a bank account 

[Rasheed3274]

How do I know if am qualified for Capital loan

[Joe]

Hi there, @Rasheed3274 👋 Thanks for reaching out to us here on the Seller Community!

I've gone ahead and merged your post into an existing thread of Sellers also looking to ensure Capital eligibility. You will find all the info here.

Long story short - keep being a great Seller and we will notify you as soon as you are eligible!

[LaDora]

Hi @SpoiledRotten, 

We look for businesses that have processed at least $10,000 in card transactions. However, loan eligibility is based on a variety of factors related to your business, including its payment processing volume, account history, and payment frequency.

[PixieMethod]

I haven't opened my shop yet. Becasue I'm starting out. So for people like us artists who are simply selling stickers at a low price which we know will not reach to 10k in processing... would we even be able to get a small business loan that is reasonable for us to use for growth in other items that we may stock in beside like stickers, if we wanted to expand our inventory? Or is that not realistic at all?

I'm just curious 🙂 

[Russell]

Hey there @PixieMethod - thanks for posting! 

We don't have smaller loans with lower requirements at this time. Keep focused on your business and as it grows, you make find yourself eligible. 

[ecantiques5]

@PixieMethod

Good for you on getting ready to open!!!

I do not mean to be rude or throw shade, but you will not get a Square Capital Loan Offer unless you process the $10,000 per year. Unless they improve the program to be more Small Business Friendly and incorporate accommodations for all their clients, anything under $10,000 is a " no go".

It's a shame to recommend another payment processing service, but you might look into PayPal. They possibly offer a lower yearly sales volume in order to be offered Capital. I know one thing, their program is most definitely MORE transparent and less ambiguous.

As @Russell stated, with Square the focus is just what you process with them, right now the Capital program is lacking in compatibly with Business owner needs.

[PixieMethod]

No worries! Yeah, I was just curious. 

But thank you for the response! I'll keep that noted for sure.

Hopefully one day Square will have an option for small loans for Artists. Till then.. I'll finish setting and stocking on inventory before opening my shop. 🙂

Much appreicated! 

[ecantiques5]

@PixieMethod

You go!!  I wish you all the very best!!  Perhaps you can develop a complimentary product to your stickers that will give you additional reveue opportunities 🤗

[Russell]

Thanks for hopping in, @ecantiques5 - 

You aren't being rude at all - this is a requirement. We are required to follow industry standards and regulations and take it pretty seriously. 👍

[dmdale0318]

Is there a specific time that accounts are reviewed for additional capital? I am currently 88% paid off of my third loan.  my sales are increasing each month. we recently added an additional 2k square feet in retail space and would love the additional capital to stock inventory.

[Blondempirewp]

I would not count on another loan with square capital even if you are paid off.  I am at 94 perecent and have processed much higher amounts, and well over the 10,000 a year I have processed 130,000 so far this year and I have not been offered a loan so it seems they have changed the way the offer loans if they do offer them.  This is my 4th loan and every other loan I was offered at 70 percent. All the factors they say that would give you eligibilty I have improved on and still I have not been offered a loan. It might be smart to start exploring other options and possibly other companys to process with if you need a loan using your processing amounts. 

[Chad]

Hello @Blondempirewp, I had to remove a duplicate post you made. I understand accidents happen sometimes, but please try and refrain from posting the same comment twice. 

Although you haven't received an early renewal, that doesn't mean you won't receive another Square Capital offer in the future.  

[Blondempirewp]

I understand that not every business is offered an early loan offer.  However I am now 100 percent paid on my fourth loan to which I have paid back within 18 months.  I am not being offered another loan even with all loans paid in full.  And my company is processing over 40,000 more in credit cards in comparsion to last year, it seems odd to me that I still don't quailfy for a captial loan when I easily had loan offers early with each other prior? Furthermore is there a direct answer that I can be made aware of to why I do not quailify for another square capital loan?  Because every aspect that is listed to what would have your company qualify I have met and surpassed.  It seems that square capital has changed the way it offers loans and with no direct answer as to why, even with my having all loans paid off and with my company processing higher and more often I still do not have a loan offer.  As a small business owner I have used my captial loans to grow my business and have paid square over 10,000 in processing fees within two years.  That being said if I can not use the high amount of processing I am doing with my business to grow my business I will switch to another company, or the bank I use to have the opition of borrowing captial with the backing of proven income of what my credit card processing gives me. 

[Chad]

Hey @Blondempirewp, I reached out to you earlier on a different post.

My answer still stands, but once again please be mindful of posting the same question in multiple places!  🙂

[Blondempirewp]

Chad I have a different question, I saw that one of the reasons that early offers aren't given can be if you have a significally higher card charge processed then what your average charge typically is.  I had done a wedding party and had a much higher card swipe then normal by a few thousand which I am sure would be considered much higher then what I charge per swipe on average.  In the future if I have a much higher charge for something like a wedding party would you suggust I have them break it up within mulitple card swipes so my account doesnt show a much higher charge or would it make a difference if I processed it with an attached invoice?

[LaDora]

Hello @Blondempirewp, 

I believe that you are referring to one of the possible reasons that an application may be declined. At this time, we are not able to recommend ways to process larger transactions because each business is different. 

For more information about declines, please visit our Support Center.

[LashandBeauty]

I agree, Square has changed the way in which loans are offerred along with the actual qualifications and underwriting being vague. I think its best to start looking at other companies for processing as Square does not value on time loan repayments and growing sales.