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Square Loan No New Offer

So I am on my 5th loan as of right now. First it started with 1500 had it down to 75% in a month and got offered another one for 1600, paid off 250 of old loan, then 45 days later got offered another one for 1700 which was only at like 70% and paid off 299 of current loan. Then I got to 80%ish and I was offered another loan at 2100 which paid off at 60% with paying 799 of the 1700 loan. Now I was offered 3500 back on march 13th about. I have to date paid off 98% and only owe 42 bucks left but that will be paid off today once the $1028 in invoices are paid, shoot once 1 invoice is paid leaving 925 that I will now get vs having to pay towards my old loan being it'll be paid off with 100 bucks of what I have invoices out for. My question is Why have I not gotten a new loan. I was offered this new loan just over 2 months ago. I am paying off each of the past loans within 30 to 45 days being my transactions are daily and business has been steady. I do not have these loans longer then 2 months so that steady influx every 60/80 days has been amazing and helped so much. They made 490 off me which is fine, but really I am almost all paid off and I am not even issued a new loan yet at 98% with only 42 bucks of the entire loan agreement. I was banking on this next loan being I went from 2100 to 3500 I can only assume my 6th offer would be around the 5k+ mark. I was relying on this new loan to help me get back stocked with inventory being the virus has played a toll on me over the last two or three months. But still I've paid off 39978.47 in just over 70 days and I am not offered a new loan. Like Seriously! WHY??? Is it so I take or fill out that government loan thing now. I don't want that I want the square capital loan not this government thing. Any ideas community. TIA

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Beta Member

They are not making any new loan offers. 😞 

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Are you saying that generally or did someone from square tell you that? Cause my dad just got a new offer last month for the web company? Or shoot 3 weeks ago. 

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Beta Member

Square Capital confirmed this for me about a week ago. They say they have "reduced" loan offers, but it appears they've halted altogether. I read an article last week that said Square Capital had lost nearly 100 million during COVID, all in unpaid loans. The article said that the capital loan program would resume, under tighter protocol. So I imagine they will resume it soon, but eligibility will most likely shift. 

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All right well now that makes sense and it’s horrible that they lost the money but I’m almost or I’m at $4000 paid off I can’t believe the people that are paying and they’re still continuing to make money on their halting or hurting because I was counting on this loan last month let alone right now there’s basically just destroyed me generally talking because I was banking on that but thanks a lot for the information now I could write that off

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@NicholasAdam 

 

@Jenn317 is correct the program was stopped without warning and truly hurt many of us small business owners that were still able to process revenue & fulfill our Square Capital loan obligations.

 

We have been with them since 2013 and paid off our 10th Capital loan a couple if weeks ago. Nothing in way of a new offer or even a thank you for paying off. Not an email or Anything. What is so frustrating about the whole thing is how they are not upfront &  straight forward.

 

If I had not invested in their POS stand( around $700)for our Brick & Mortar shop I would have totally walked away.  But... I plan to take the time in the next week or so to look at other processing options.  On the brightside (always gotta try to find the good) it is SUPER AWESOME  not to be having the extra percentage for repayment coming off our revenue processed through Square. That 2.9% processing fee only is pretty nice 😊 When we have a capital loan our repayment rates have been anywhere from 13.5 to 16.5% so.... 2.9 is a good thing. 

 

Wishing you the best as you navigate your biz through these challenging days 😊

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Thanks for the info. Yes it is gonna be nice but very disappointed in square. Yes they are out the $$ for businesses that went under. Which is sad for both ways. But I’d t their $$ federally insured or maybe not being it’s a square cap loan.  Thanks for the input. 

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This really sucks because I am close to paying off my 7th or 8th loan and purposely made sure they collected even more money the past 2 months to get down to 89%. This month was my biggest processing month with them over 5 or 6 years.
 
They got hit like so many but now they're going to get hit even more when good guys who continued to process thru them the past two months and didn't take advantage of deferring... I was paying 18% plus normal fees. I could have a nice chunk of cash in my back account and just waited this whole thing out.
 
So much for doing the right thing!
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@bigpoppi 

I am so very sorry. It REALLY troubles me for my fellow small business owners to have to post these stories of how you have worked harder than ever, navigated through an epic ordeal such as this covid thing, and feel so betrayed by what Square Capital did.  Its just hard to understand when you have done your part and above. 

I wish you abundant success in your future endeavors. 

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Yeah I am right along there with you. I had my last loan for 3500, paid back like 3950. Since my loan ended 2 weeks ago now about. I have processed over 5k in sales that they did not get the 16.7% rate. I am just so taken back cause I too worked really hard to get this loan paid back even with Covid going on expecting that I would have my 6 or7th loan anyday. Very disappointed! Thanks for your feedback. I guess when you do the right thing you still loose..lol Wish you the best. N

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Have any of you receive loan renewals since May? Mine is paid 88% and I usually get a renewal offer are 75%.

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Yes, i already have gotten 2 new offers since they started back up 

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What is your industry? I own a restaurant.

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No I actually sell coral for saltwater tanks so basically just an Internet online business and I also have a website marketing company that got one as well but that one’s under my dad‘s name they started them about 2 1/2 months ago because I was at 80% right around the time the virus kicked off and I got all the way paid off and then I realize that they stopped offering the loans so I got my first one I want To say about August and then I just got a new offer just last week because I was already at 77%

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Interesting because I've had 8 or 9. All paid off and early. No drop in sales over last 6 months, in fact increase. Over 55% repeat business. I'm all online and even an essential business so no way I was being shut down.

Had one new offer end of August. Accepted it then denied because I had another outstanding one for another business. Paid that one off 3 weeks later. Here it is been almost 2 months with no offer even though sales are still in 5-figures and no drops. Never even had a chargeback and I've been with them since the beginning. 

 

Had some chances to go elsewhere and have hung around.

 

Still waiting......

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@NicholasAdam  - curious, did you take either offer?

 

What state are you in?

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yes, im on my second one since the started back doing them. 

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I’ve read all sorts of things about how they’re not making any new loan offers and stuff like that however they are making new loan offers myself and my fiancé both got different loans in the last couple months from them however they offered me $800 when my last loan from them was 2500 so I excepted the loan for $850 that would’ve been due in December I just paid it off this last week so extremely early and now it says that it’s paid in full and my status is in eligible like I guess I don’t understand that and if people that I’ve paid multiple loans off in Full should be offered a couple different options like if they believe I would have to pay the loan out of my bank account and not just out of my sails I believe that they should give me that option if I choose to do that they have my bank account they can pull things right out of it I’m wondering if I’m not eligible because I have a PPP loan that still do the total due is six dollars and monthly they have been pulling $.59 out of my bank account to pay that I requested multiple times that they 

just pay the entire six dollars and some cents on my PPP loan that’s left instead of taking a $.59 payment every month and they say they’ll initiate the payment and then it’s like a week and a half later before the payment is actually attempted to be taken out of my bank account and other bills come out and then they act like there’s not sufficient funds so then I have a $30 charge for non-sufficient funds and I still haven’t paid my six dollars due on the PPP loan why do I not have the option of using my square valance to pay any of these things and why would I not have the option to make an instant withdrawal payment like paying any other bill with a credit card 

It kind of seems like they’d rather go to the roundabout way. Yet they can instant deposit. 

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Super Seller

 @MarkedTattooAlx .  I've tried a few different things in the past with their loans to try and gain some DP's (Data Points) for my own curious mind.  Ie. collecting more in cash/check but still recording everything in Square.  The few loans I have had were always PIF well before the date.  I will never understand their algorithm.  I can agree with you, which I'm not positive but the algorithm should be able to take in and read the connected bank account info since its already connected to our accounts, that part just doesn't make sense to me why they don't. /Shrug

Dan
Scorpion Coating Plus,LLC
Square Super Seller
Check out Square support center for additional help.
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