Has anyone received a loan offer in 2023?

[Blackbear579]

I'm at 71% and usually see a offer by now (between 65%-70&).

[#2]

I'm where you are at (minus the actual loan offer part.) Sale are up about 60% over a year ago and processing is up about 65%.  All the other things are in the green.

I think most people's frustrations are that it's just not transparent and there isn't a clear goal to strive for. It is also disheartening to just be told the same quotes over and over. It comes across as uncaring and impersonal. Which if that's the case is fine, that should be conveyed to clear up misconceptions and so people don't get their hopes up. It would also come across as more professional to state those things (economy and such) from Square itself. It would let people know where they stand and can make appropriate decisions. 

[_Violet · Accepted solution]

Hi all 👋 @Blackbear579 @DD_2019 @Me2018_ @Swain - I just wanted to drop in to provide some context on Square Loan offers:

Square accounts—including accounts with an active loan—are reviewed for eligibility regularly. You don’t need to contact us or provide any additional information to become eligible for another loan offer. You can check your Square Dashboard (at any time for more information about your current eligibility status.

Offers are not guaranteed and we are unable to predict when your business may receive another offer. Loan offer details, as well as the timing of eligibility, may differ from your current Square loan. You can find additional details here in the Square Loan Eligibility FAQ support article.

If you have any additional questions about Square Loans, you'll need to get in touch with the Square Financial Services Team by logging into your Square account and heading here. The Financial Services Team's business hours are Monday - Friday, 10 AM to 7 PM CST.

I hope this information is helpful but please do let me know if you have any additional questions.

[sayra · Accepted solution]

Hello, @Fca. 

It's understandable that you're curious about the timeline for a new loan offer after being denied, especially given your previous experience. Every case and account is different, on this platform we do not have greater visibility regarding your account and loan qualifications. 

For Square Loan related questions and Loan availability or eligibility you will want to reach out to the Square Banking team. They are available at 855-700-6000 between 6 am - 6 pm Pacific Time Monday-Friday. Our designated team will be more than happy to help you further. 

In addition, we went ahead and merged your post to this existing thread where other Square Sellers have discussion their Square Loans. We merge duplicate conversations together to keep like comments in one place, and to make it easier for others to find the thread in the future. 

Thank you. 

[Twpchair]

I looked at mine as well with everyone posting and good luck with that 😆 🤣 😂 I bounced just like you with at some years pre covid 4x higher and a lesser offer but the next one was my highest offer. I gave up guessing and I do the same if I need it take it if I don't I have passed on offers. Trying to compare my business to your business and different states with different economical issues all matters so it is what it is. 🤷 I've had offers at 74% and 89% there is no guarantee that's the bottom line. 

[Twpchair]

I've been with square since 2014 or 2015 I've had (I just looked 16 loans) I've never had any loan go up if I let just sit. I have seen others say they didn't respond in a certain amount of time and the offer disappeared. How, when, what % is hard to predict especially lately 😕 I have read down the thread a good bit and a good handful seems to have had increases and most were less. Like the other comments I wish I could tell you a straight forward 100% reason as to why if you're sales are all up, your growing or building your business up it would seem that it would have increased but I can't. I would just hate to have you wait if you need it and have it disappear I don't know if they have a timeline how long it stays on your dashboard. Others that the offer has disappeared might be able to tell you how long it was there than gone. I either know ahead of time I'm going to take it or I have passed on offers as well. Good luck to you and your business keep on doing what your doing great job! 

[bsa77]

I have hung in with square for along time. Partially because I have wanted to get my loan paid back quickly and then planned to move to a different processing company to save overall money on the fees . The only bonus for me personally is the square loans they offer. However going on probably my 12th loan now I am at the most 95% paid back with no offer in site. If I make it to 100% it will be the parting of square for myself. Iit they don't have to give you loans and I completely understand they have an algorithm but when you have had an account with extremely high sales , zero I mean zero issues bringing in the same volume and they say my volume need work it is an insult to me! I am processing the same amount but in one invoice for my clients rather than 3 invoices being paid over a short period. And I have high volume sales!  It doesn't show much appreciation to their customers that are making them alot of money in return. I am looking into other processors this afternoon since we are now 95% paid and zero reason not to have an offer

[mydpins]

I am on the same boat, have had multiple loans both small and large as I have 2 locations. at 85% of the highest loan to date with them and no offer yet. I have contacted by phone and email asking if they have changed requirements as I know a friend got a smaller one with only 72% paid off last month, all I get is the same generic reply on the website and recording... It's very frustrating as others have mentioned the loans are a huge portion as to why I have not switched processing companies, but if I pay this off and no offer then I may start to look for a cheaper alternative for processing. 

[Tran1313]

I’m at 81% and I just got an offer. 5k less than my last offer. 

[aloha808]

I just received an offer for almost less than half of my previous loan at 88%... Disappointed, especially since sales have been greater this year.

[TheRealChipA]

So, I’m pretty sure that this post won’t matter much, since this entire thread seems to be about nothing other than venting and complaining about how Square is disappointing everyone.  But I’ll give it a try… again.  I’m not going to say anything I haven’t said before, but what the heck.  Maybe one person will read it and actually have a light bulb go off!  LOL

Tuesday, I got an offer.  My current loan was at 70% paid at that time.  Here are a few things about my business:

• My new offer is 30% higher than my current loan.
• Business is up 35% over this time last year.
• My card processing volume is up 41% over this time last year.
• Ratio of card sales to total sales = 80%
• Length of time to pay 70% of my current loan = 8-1/2 months.
• I am seasonal, so actual time to pay 70% of my current loan was about 4 months, give or take a few days.  Obviously, during my off season I paid my minimums in full, and on time.
• None of this matters to me since my policy is never to take a new loan until my current one is paid in full.  This is because I do not want to pay a fee on top of the fee I’ve already incurred with my current loan.  If I take a new loan early, I will be paying higher fees than if I wait.  Paying higher fees for money I’ve already spent is ludicrous.

I know of two other people who have received loan offers under similar circumstances, a few whose new offers were delayed and lower, and a couple of others who have not received any offers at all after paying off their previous loans entirely months ago.  Since they are all friends, I know their situations and that has allowed me to make a few conclusions.

1. Square doesn’t say this, but it seems very obvious — If card processing volume is not significantly up, then it seems obvious that new loan offers will not go up.
2. In fact, flat card (or barely growing) volume seems to be a red-flag that indicates that the business is not growing and possibly in distress enough that a lower new loan offer is warranted.
3. Sellers with high cash volume (which Square can’t count since they can’t count on that money, ever) seem to be received lower (or even no) new offers.  How high is high?  I don’t know.  But before the pandemic I was a 50-50 cash-to-card business and my offers were always both low and slow.  It wasn’t until my card volume got up to at least 70% of total sales that my offers really increased.
4. Extra payments don’t seem to move the meter at all.  I know one person who has done that religiously when his cash sales were really up.  While it helps him stay on top of his payments, Square can not count on him always doing that, nor should they.  They rely entirely on card sales volume.  He understands this because we’ve talked about it a lot.
5. Lastly, none of this is a surprise.  The lending market, especially for sweet repayment deals like Square offers, is dried up and hunkering down in fear.  Every lender is watching the market indicators in fear that a recession is coming and that it won’t be pretty.  Thankfully, our idiot politicians did their bare minimum jobs and didn’t make things worse, but things are still not looking good for lenders who have lots of questionable loans, right now.  The market looks a lot like it did just after the pandemic fears started ramping up, and we all know how that turned out.

Good luck, everyone.  If you find greener pastures for quick money, then good for you.  Given what I read every day in the financial journals, there is not much of that anywhere.  I hope you all make it through, whether or not you get a satisfying loan offer.

[BodyInBalance]

I'm where you are at (minus the actual loan offer part.) Sale are up about 60% over a year ago and processing is up about 65%.  All the other things are in the green.

I think most people's frustrations are that it's just not transparent and there isn't a clear goal to strive for. It is also disheartening to just be told the same quotes over and over. It comes across as uncaring and impersonal. Which if that's the case is fine, that should be conveyed to clear up misconceptions and so people don't get their hopes up. It would also come across as more professional to state those things (economy and such) from Square itself. It would let people know where they stand and can make appropriate decisions. 

[TheRealChipA]

@BodyInBalance I will agree with you 100% as a matter of principle, here.  

However, I guess that is something that this “old Boomer” can’t quite understand.  I’ve never expected my lender or my banker or anyone else I have a professional relationship to care about anything other than my business.  I don’t care whether they are personal or caring, or not.  Again, to this old Boomer, misconceptions that Square cares (or anything like that) say less about Square and more about the other person in the “relationship.”

I’ve spent my entire very long life taking it upon myself to read about the economy, every day.  To learn about how the world of high finance works.  Etc.  I believe that all serious business owners need to do that and to always be informed.

Sure, Square’s metrics for loan worthiness are somewhat vague, but they are no different from any serious, competent lender in this regard.  I’ve had plenty of “real banks” turn me down for loans over the years that I qualified for by “checking all the right boxes” with my business stats.  It’s just the way the money lending business works.  Trust me, I know it doesn’t seem fair or right, but it is what it is and it isn’t just Square.  I’m betting that Square is moving much slower for certain business types, too.  I read an interesting article (Barron’s, I think, but not sure) that outlined business types that should weather the coming recession just fine and others that will be wiped out.  If Square is smart, they are reading and digesting the same professional information.

Having said all of that, you are right.  I think that Square’s communication skills — especially in this area — could use some improvement.  I’ve told them so through back-channels and will continue to do so.  I’ve even started working up some suggestions in that area.  But, in reality, Square is not responsible to educate us about what it going on with the economy.  From what I’ve seen, even if they do someone will always argue that they, somehow, are different from everyone else in the economy.

It’s tricky.  And I’m not arguing or disagreeing with you, so please don’t take it that way.  I’m just muddying the waters more!

[mydpins]

Just got an offer at 87% of 108k loan. The new offer is almost only half of the previous one. Which I do not understand as have had no chargebacks, plenty of new customers and all metrics the review are green and even 40% boost in credit card sales…

[ianssoph]

Did you have to provide any collateral on a loan over $100k? Just curious. My loan offers have steadily increased and was wondering what I would have to provide if I accepted anything over $75k. Thank you!

[Sammie_C]

Hi @ianssoph!

Thanks for your question!

For loans amounts over $100,000, we may take a security interest in your business assets and file a UCC-1 statement with the Secretary of State where your business is organized. This is reflected in your loan agreement.

After you have finished paying off your loan, you can reach out to us with a request to remove the UCC-1 filing. Your business is welcome to pay back this loan early at no additional cost. It can take up to 10 business days after repaying your loan for the lien termination to be filed.

Please note that once the lien termination is filed, it could take additional time for the Secretary of State to process the termination and provide a UCC-3 termination statement.

Let us know if you have any other questions!

[ianssoph]

Thank you so much for the info!

[CTC18]

Currently at 82% paid back on my 9th and highest loan yet with Square. I’m $20k ahead on payments. Credit card sales are up 20% this year to last year. Processing volume this month alone is up 15k. Processing frequency is up and at 2493 the last month when an average month is 2095. I’m blowing all the checkmarks out of the water but nada. Typically have an offer between 70-75%. It’s gotta be any day now. 😅

[Hamilji]

I’m at 84% and no offer.   Usually get one at 75% to 80%.  Does anyone know if they found someone to talk to? 

[TheRealChipA]

@Hamilji new offers are coming later, mostly. It’s not about love. It’s not about history. It’s about how much risk Square is willing to take on.

 Rather than looking at your current loan payoff percentage, look at you card processing volume. How much higher, or lower, is your card processing volume now than when you got your last offer? If it is flat or less, trust me when I say it will be a while. Flat card processing volume is the same as declining processing volume. It means a business is not growing. 

If your card processing volume is consistently and significantly higher than when you got your last offer, then Square could have reached the limit of the risk they can realistically take on their balance sheet in this economic environment. Lenders do this. It has nothing to do with you. 

Ultimately there is no one to talk to. When the offer comes, it comes. Until it does, there is no offer. That’s reality. 

i wish you well. 

[TheRealChipA]

I received a new offer. My card processing volume is up 30%+. I’m not alone. Square seems to be looking for significant growth, not business as usual. Paying a loan on time is not enough with any lender in this economy.  It sucks. It’s true. 

[PartyManiaMD]

@TheRealChipA How long did your approval take? I'm getting a bit worried because I was given a loan offer on Wednesday and it's still pending (today being Friday, and yes I know it can take up to 3 business days). Just wondering if there's any chance of it getting declined, usually the approval is pretty fast (this would be my 3rd loan with Square).

I guess I should wait until Tuesday to start worrying since it probably can take up to 3 FULL business days but man is the anticipation real. The amount is significantly more than I was offered last time because our growth is great, and I can utilize it to increase sales, add new profit centers, and take advantage of some of our wholesaler's warehouse deals.

[TheRealChipA]

@PartyManiaMD So, I have not taken this offer.  I rarely apply until I’ve paid off the existing loan.  This is because I’m a stingy, miserly old Grinch who detests paying more fees than I need to.  If I had accepted this current offer when I received it, it would have been approximately $500 in “extra” fees because Square would have paid off my existing loan and given me a smaller amount.  This way I pay the exact fees on each loan, and get the full amount.  Obviously I know that sometimes you just can’t wait, and I’ve been there a time or two.  But I try like the devil not to do it.

There’s always a chance of being declined, my friend.  It sounds like business is good enough for you that it wouldn’t happen.  But Square does review everything about your account history after you apply.  So, hopefully you didn’t have many disputes, and you didn’t use your own personal cards to buy stuff from yourself, etc.  From what I can tell, rejections seem to be due to extraordinary circumstances that most of us never encounter.  Don’t borrow trouble, as my grandmother was fond of saying, and don’t overthink it! LOL

I’m happy that your offer was also significantly higher, and that sales are commensurate with that good news.  This time around, when I do take the offer I’m going to use it to pay off some rather high interest debt I have remaining from the post-pandemic rebranding and reinvention of Piper’s.  At Square’s sweetheart fees, I’ll be saving a few thousand dollars immediately on interest I would otherwise pay AND I can use the monthly  payments I would have paid on those cards to eliminate the rest of my debt.  If the evil master plan works as it says on paper, I’ll be debt free by June of next year!  That only took 11 years.  But, Square was a big reason I’m able to get there!

I wish you well.

[CTC18]

My approval only took a surprising 15 minutes but I feel like that’s not normal at all!

[TheRealChipA]

That’s not normal at all!  You must have caught them on a Slow Loan Day! 😆