x
Beta Member

Declined For Cash Advances

The title of this thread has been edited from the original: "Cash Advances"

 

Why am I denied a loan, although I have had two every year for 4 years from square due to cash advances? Square makes money on that too yet they deny me a loan due to cash advances of my own money, although also I have tripled my sales over the years. 

8,045 Views
Message 1 of 50
Report
1 Best Answer

Best Answer

Your issue my friend is much bigger than an issue with Square itself.  I believe it is actually a blanket card processing industry policy and in some cases a law perhaps that you can not use your own cards at a business you have any vested interest in or control over. The reason for this is simple. #1 Money laundering. #2 Fraud. If you use your card at your own store, what's to stop you from taking say a 500$ swipe at the store with your personal AMEX card and then collecting the cash via instant transfer? It's an illegal cash advance as far as I know.  It's not a "big Brother" issue as another person commented. It's all part of that magnetic strip/chip built into the card. It contains a huge amount of data about you, your account, and your personal identifying info. I assume the companies have systems to automatically check cards that are swiped for any similarities in information to the data you provided them when setting up your merchant account. This I would guess is how they knew you were using your card at your own store. Big no no. If you want something from your own store, the best bet is to use cash to buy it or have a friend buy it with their card and pay them back. This is my understanding, not the square policy I am referring to but I think it's pretty close to how they do it as well. 

View Best Answer >

6,757 Views
Message 15 of 50
Report
49 REPLIES 49
Community Team

Hi @Axwoman,

 

Thanks for reaching out! Since this is an account specific question, I followed up with you via email.

Jules
Square Loans Team
Sign in and click Mark as Best Answer if my reply answers your question.

Square, the Square logo, Square Financial Services, Square Capital, and others are trademarks of Square, Inc. and/or its subsidiaries. Square Financial Services, Inc. is a wholly owned subsidiary of Square, Inc. All loans are issued by Square Financial Services, Inc. a Utah-Chartered Industrial Bank. Member FDIC. Actual fee depends upon payment card processing history, loan amount and other eligibility factors. A minimum payment of 1/18th of the initial loan balance is required every 60 days and full loan repayment is required within 18 months. Loan eligibility is not guaranteed. All loans are subject to credit approval.
5,346 Views
Message 2 of 50
Report

Seems like square is being much more reluctant to actually approve loans right now. I can see their side in why cash advances is frowned upon because it inflates sales and they want an accurate assessment of your business to offer you the right amount of capital. But to deny loans seems like the wrong route. I’m sure it’s just an algorithm that’s denying it. They should have a person look at each of these situations and determine how much was cash advanced and adjust there offers instead of flat out denying. Noones perfect hopefully square will make the changes, can I ask what % were you at when offered and denied and where are you at now? I usually get offers 70-90% 

5,260 Views
Message 3 of 50
Report

I am at 75% now and no new offer and I have been with square for many years and have had over 10 loans total.  Does anyone know if they are still making loans and if so what percentage are you seeing the offer come in at now?

5,111 Views
Message 4 of 50
Report

Yeah I got mine at 78% then got denied from buying merchandise from my store mind you I’m an llc not a sole proprietor I have employees I am an employee 

5,108 Views
Message 5 of 50
Report

Can i make sure I understand? So you got an offer and then when you accepted it they denied you? I am confused on the "denied from buying merchandise" part.  When i receive a loan they deposit into my account and Square cannot deny any swipes in your personal account.  I could be totally confused that is why i am wanting to understand your scenario.  Thank you for responding.

5,041 Views
Message 6 of 50
Report

Yes that is exactly what happened they sent me something saying you can not buy from your store friends nor family and they denied a 9000 loan 

5,039 Views
Message 7 of 50
Report

At 98% and no offer, I’ve repaid 13 loans with them, making the decision this week to go ahead and switch to PayPal, square has unfortunately forgot what helped get them where they are, helping small businesses.

5,033 Views
Message 8 of 50
Report
Community Team

Hi @MAGIK5TATTOO,  

 

Thank you for reaching out.

 

Square Loans are currently offered by invitation. While you are processing with Square, Square Financial Services automatically reviews your processing activity to evaluate loan offer eligibility. If we spot that you’re eligible to apply for a Square Loan, we’ll proactively reach out to you (via email and in your Square Dashboard) with a customized loan offer.

 

Potential offers are based on many factors related to your business including, but not limited to, your current payment processing volume, your customer mix, and your Square account history. You can learn more about how your business may become eligible for a loan in our Support Center. 

 

We know that you dedicate much of your time and resources to your business. You do not need to contact us or provide any additional information to become eligible for a loan offer. If your business is eligible to apply for a Square loan, we’ll notify you by email and through your Square Dashboard.

Vickie
Square Loans Team
Sign in and click Mark as Best Answer if my reply answers your question.

This is a service email from Square Financial Services, Inc., a wholly owned subsidiary of Block, Inc. All loans are issued by Square Financial Services, Inc, a Utah-Chartered Industrial Bank, Members FDIC.
4,859 Views
Message 9 of 50
Report

We did eventually get a new loan offer approved, no longer upset at square, and there is hope for everyone that they are still lending just keep processing and focus on growing your business. 

4,497 Views
Message 10 of 50
Report

how long after paying off your loan did you receive a new offer.

4,500 Views
Message 11 of 50
Report

3-4 months

4,495 Views
Message 12 of 50
Report

Can i ask do you get your square loan put in a business account or on your square card? I am only asking because i still am stumped on how they are declining you for purchases??? How do they know what you purchase? I do not bank with square or use the square card they sent me years ago..  I just process with square and everything is deposited into my account at my primary bank so to me this scenario is bigger than square capital it is a very "big brother" type of situation if they can see what your doing with your bank and purchases unless its that you bank with them or use the square card which I do not do. I also dont have a business where i can buy from myself as I am a barber and dont cut my own hair so no issues there for me and even if I did cut my own hair i wouoldnt charge myself.......LOL  I really just need to determine if square is going to continue offeriing capital consistenly and if not then what other companies are because we do offer square a huge amount of income off the processing and loans that i am sure another business would love have and based on the discussion boards seems many are looking to leave square due to unrealiability with loans.  Thank you for your time.

5,034 Views
Message 13 of 50
Report

I own a boutique so I have to get clothes from my business all the time. If I see something I want to buy I but it with my personal debit card. This is from another bank all together not square. I have a square debit card but that has nothing to do with the decline. The saw my personal debit card and I purchased from my business. They said "Hey, you cannot purchase from your business. My business is a corportation so I have to make purchases from my business. I am not a sole proprietorship. Yes, square is being a big brother and will find anything to cancel your loan. I guess I will have to seek legal advice on this. Shopify also offers processing and loans. I opened my shopify account back up. I am just paying off this loan then will stop working with them.

5,026 Views
Message 14 of 50
Report

Best Answer

Your issue my friend is much bigger than an issue with Square itself.  I believe it is actually a blanket card processing industry policy and in some cases a law perhaps that you can not use your own cards at a business you have any vested interest in or control over. The reason for this is simple. #1 Money laundering. #2 Fraud. If you use your card at your own store, what's to stop you from taking say a 500$ swipe at the store with your personal AMEX card and then collecting the cash via instant transfer? It's an illegal cash advance as far as I know.  It's not a "big Brother" issue as another person commented. It's all part of that magnetic strip/chip built into the card. It contains a huge amount of data about you, your account, and your personal identifying info. I assume the companies have systems to automatically check cards that are swiped for any similarities in information to the data you provided them when setting up your merchant account. This I would guess is how they knew you were using your card at your own store. Big no no. If you want something from your own store, the best bet is to use cash to buy it or have a friend buy it with their card and pay them back. This is my understanding, not the square policy I am referring to but I think it's pretty close to how they do it as well. 

6,758 Views
Message 15 of 50
Report

I am in a same situation.they denied 9k loan because of cash advance.do you know how long it will take to go back my account normal and get another offer .i paid off all the loan i have with them ..

2,111 Views
Message 16 of 50
Report

I got denied after an offer because of cash advances and I & my family do business with my business as well. I've never had a charge back. All my customers are friends of mine. It's very frustrating but looking for another processor. I've been with square since I started my business 12 years ago. Any suggestions for a new processor would be greatly appreciated.

3,903 Views
Message 17 of 50
Report

Takes about mth in half then it goes back to normal 

3,867 Views
Message 18 of 50
Report

Hi did it ever go away for you i got the same respond when I sell clothes and invoice everything so now am not sure if I’ll ever get another offer or just change card processor all together ! 

3,539 Views
Message 19 of 50
Report

Yeah it went away month later. Just keep grinding.

3,537 Views
Message 20 of 50
Report

ok so you where able to get another loans after a month just wondering cuz I need the money for inventory but am so depressed that I don’t Know if I will be able to get a new loan with them 

3,534 Views
Message 21 of 50
Report