x

New Square Loan in 2024

I’m at a bit of a loss for what else I need to do to be offered a new Square Loan at this point. I’ve been with Square for over 10 years, had 7 loans now that I’ve have paid back early every single time. Metrics are all in green, record sales year. In 2023, record numbers across the board, no refunds, no complaints or issues of any kind in our entire history. Current loan is 80% paid off, but no new offer in site. This is the kind of stuff that causes businesses to find someone else to process through! Please help! I’m sure I’ll get the same old excuses that you guys send to everyone about looking at every aspect of the business. But there isn’t a single aspect that isn’t way up. I’m not sure if there is a new process they are using now, or if there is some kind of issue with my banking or something else I’m not thinking about or aware of. Any help would be much appreciated. Thanks, because I could really use some new capital to start the year off with and reinvest into my business!

285,902 Views
Message 1 of 2,528
Report
7 Best Answers
Square Champion

Best Answer

I'm really sorry to hear about your frustration with the loan offers. I understand how important it is to feel valued, especially as a loyal customer. Let me try to address your concerns and provide some clarity.

Loan Offers and Qualification Parameters

Square’s loan offers are based on a variety of factors, and while past trends have shown offers at certain thresholds, the exact parameters can change over time and are not always disclosed in detail. Here are a few points to consider:

  • Dynamic Criteria: Square uses a complex set of algorithms that take into account not just the repayment percentage but also your recent sales history, account health, and overall business performance.
  • Market Conditions: External market conditions and internal policy changes can also impact when and how loan offers are extended.

Value Beyond Transaction Fees

I understand that a 3% card transaction fee can seem high compared to other providers, but Square offers several features and benefits that help justify this cost:

  • Integrated Ecosystem: Square provides a comprehensive suite of tools that work seamlessly together, from point-of-sale systems to online stores, invoicing, and inventory management.
  • Ease of Use: The user-friendly interface and intuitive design make managing your business simpler and more efficient, saving you time and reducing the need for extensive training.
  • Reliable Support: Square offers robust customer support and resources to help you resolve issues quickly and keep your business running smoothly.
  • Secure Transactions: Advanced security measures protect your business and customers from fraud and data breaches.
  • Analytics and Reporting: Detailed analytics and reporting tools help you understand your business performance and make informed decisions.

 

I understand the disappointment regarding the loan offer, please know that Square regularly reviews its criteria and your status. I recommend reaching out to Square’s customer support for a more personalized review of your account and to express your concerns directly.

View Best Answer >

263,029 Views
Message 472 of 2,528
Report
Square Champion

Best Answer

Good news, bad news, eh @cmeshine.  There are a number of reasons that COULD be part of why your new offer was lower.

 

  1. Square might be slowing down on how much loan exposure they want to have on their balance sheet.  They are, after all, a publicly traded company that has to answer to their shareholders and investors.
  2. If our sales are flat or at least not growing at a good rate to cover inflation and higher interest, then Square’s algorithm understands that inflation is eating into our available cash to pay bills, etc.  Flat sales (or very slowly growing sales) are always red flags to lenders, Square or not.
  3. Sometimes how long it takes us to pay off our current loans can be a factor.  Let’s say that previous loans were paid off with automatic payments in 8-10 months in the past.  But for this current loan it took us 12-15 months.  That tells Square that our card processing volume can’t keep you with higher loan amounts.  Yes, they give us 18 months to fully pay a loan, but they obviously prefer that we pay them off closer to the 12 month mark.
  4. If our cash/card ratio drastically changes, and cash spikes or is consistently higher than historical for our business, that is another red flag.  Since Square must only consider card volume when calculating repayment rates this can become a problem.

Of course, I’m not saying that any of these contributed to your lower offer.  I’m just throwing out a few reasons why this CAN happen.

Chip

If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.

Piper’s Ice Cream Bar, Covington KY USA
Website
Facebook
Click here to see a list of third-party apps I use to add functionality to my Square account!

जो है सो है

View Best Answer >

199,592 Views
Message 1530 of 2,528
Report
Square Champion

Best Answer

Congratulations! I am sorry it's lower than expected but you are correct about daily swiping vs not. That's one of the metrics. I'm retail furniture and I process daily. If 90.00 or 900.00 a swipe is a swipe and they each add up at the end of the day. Hopefully, the next offer will go up! I don't know if the algorithm picks up how your business processes I hope it will or maybe that's something that should be addressed to square. You are not alone and a big market for venues and events. The same goes for contractors who send out invoices and how fast the customer pays. Congratulations on at least getting one and thanks for the update and details about it.

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.

View Best Answer >

79,141 Views
Message 2276 of 2,528
Report
Square Champion

Best Answer

Hello, I apologize I've tried 3-4 to reply, and the boom screen locks up, then under maintenance. Not a good few days on here! When I get to your percentage especially, if I run a sale Thurs-Sun and do 10% off storewide, I use Facebook and Google for this. They are powered tools and are free. I take loads of pictures and post a few times a day with sneak peeks of new arrivals, older furniture, floor models, etc, with further markdown. Our business neighbors have a doughnut and bakery store. I usually get 20-25.00 worth of baked goods and now I would do hot cider and coffee. They or we give each other deals. I post the events that going on. Coloring contest for the kids, pumpkin coloring contest. A gift certificate live drawing on Saturday. All week prior I posted daily on both and boosted some of the posts for 9.95 for 5 days usually in a 100-mile radius and these women came. Last Saturday we tripled to very close to 4x our busiest day. I spent roughly 60-75.00 dollars. It jumps you up and in sales and this is just imo that boost kicks in something in the algorithm again imo. I went back and looked and 85% of my offers were Saturday night usually 7-10 pm after I updated. Thurs is another day again I have done Monday -Wed early bird specials and it kicks it in. I'm retail furniture and it is a little easier to do sales and deals than other industries. Just don't forget the power of free advertising for myself 95% of my first customers are women and then they bring in their spouses. Good luck, I hope you have received a loan offer by now! Hopefully, all the bugs will be worked out.

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.

View Best Answer >

49,918 Views
Message 2362 of 2,528
Report
Square Champion

Best Answer

Oh, yes! You do not need to meet your 60 days or whatever your minimum payment is. I have many times after I my minimum payment was meet and only paid a couple more days received an offer. After 12 years you kinda pick up the big do’s and don’t. I meet my minimum amount way ahead of time but definitely meet that! If not that means their last offer was too big for you to handle. 2. Try not to do too many, especially in a 4 mth-6 mths span of multiple refunds, and disputes. We have a zero return policy and our furniture already has a warranty and the rest we take care of in house. Those disputes and refunds trigger a person to physically do it and investigate why, who, and what type of thing and then back and forth with card company. The rest are important to stay green but I have been offered loans when one of metrics said needs works. So have many others. But definitely, if you have a slower period or a week or 2 of cash and checks. Just watch one or two big transitions will eat that up. I'm retail furniture so I see a week of cash or checks and then boom all cards. Keep swiping away what line of business are you in? Whenever I run a good 3-day sale on Thurs -Sat. And if I am around 70%ish. Usually, Saturday night it triggers an offer. Just lucky, coincidence? I don't know 100% not with an algorithm but I can pay down over 20% of a loan in 3 days it's triggering something to look at. I have done it before at 13% of my loan paid off and nope not happening. But in the 70s I have had it more often than not. But, like I said it is not a guarantee and honestly nothing is without a human connection. All POS systems use an algorithm type system that picks off or triggers something to look at it. 

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.

View Best Answer >

23,952 Views
Message 2428 of 2,528
Report

Best Answer

Thank you for being here and answering everybody’s question. 
We got an offer at 95% yesterday but it’s only 20%of my current loan. Do you know anybody did not accepted loan and got another loan offer. How long it takes to update to another offer. 
It’s our busiest season. I generate $5-10k everyday till Christmas. I hoping that will trigger bigger loan if I wait. Thank you again 

View Best Answer >

9,649 Views
Message 2504 of 2,528
Report
Square Champion

Best Answer

No, it is one or the other! In the testing phase, a few did receive both both that has been corrected. As of now you can't apply for one it will be offered with a limit just like a loan offer comes. But no if you are approved for say 25k and then a loan for 25k Square is not going to let you overextend yourself to where you are paying back half of what you make. Unfortunately, I have done a few tests for them and there are always bumps in the road and that was one. 

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.

View Best Answer >

9,202 Views
Message 2518 of 2,528
Report
2,527 REPLIES 2,527

Hi, all! I've been lurking this thread, as I am in this boat as well. You've all been really helpful and helped me stay positive.
My last loan from Square is completely paid off, with all my metrics in the green, and still no offer. Fingers crossed this afternoon, maybe? I'm EST, what time do you all normally check for offers?

2,151 Views
Message 1282 of 2,528
Report

It usually depends for me, I’ve gotten offers as early as 10:30 am PST and as late as 7:30 PM PST— I feel like the majority of them come after your account has been updated. It’s a little frustrating! 

2,140 Views
Message 1283 of 2,528
Report

I see; so the key I guess is to keep checking throughout the day. Appreciate the reply!

2,148 Views
Message 1284 of 2,528
Report

Good news is, we're starting the week out great, but it's majority cash again.  Pretty sure that doesn't help the offer process,  but it does show signs of business getting back to normal.  We had a very slow summer so we'll take it!!!

2,131 Views
Message 1285 of 2,528
Report

My sales seem to have slow down now from 800-1k a day to now $0 today, this isn't good.. I hope Square gives me a loan even though my weekly processing might go down a bit :/. So much for being all in the green lol.

2,145 Views
Message 1286 of 2,528
Report
Square Champion

We go through spurts like that at the store. One week all cards and very little cash. Yesterday, all cash no cards at all. Next week who knows probably all cards? It strange 🤔 at times. I'm like you though customer are customers. Good luck!

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.
2,000 Views
Message 1287 of 2,528
Report

At this point,  a sale is a sale. I'm just happy that we're on the uptick. School has started back, so not as many folks will be on vacation and this week is payday for a lot of the surrounding businesses.  All the cash is why we don't connect a back besides our own. 

2,004 Views
Message 1288 of 2,528
Report

Dang, I hope it picks up. Ours has picked up since last Saturday and everyone gets paid this week in our area, but the majority for the last few days has been cash. 

2,156 Views
Message 1289 of 2,528
Report

Mine updated at 5:05, sitting at 75%, but no offer yet. Processed just under $30,000 in July, hit just under $1,000 today. 

Today is SQ earnings, so that could possibly cause a delay. However, the did BEAT their ER, so way to go! 

2,563 Views
Message 1290 of 2,528
Report

Block stocks are dipping,  today so that could play a part. We're all in green and updated at 1:30 cst but no offer.

2,511 Views
Message 1291 of 2,528
Report

Updated at 3:36pm cst no new offer sadly. Been super slow today but since I’m an online business sales usually don’t come in until later in the evening. Metrics still green and good standing so I’m thankful for that. Still hoping for an offer soon. Would be amazing especially at the beginning of the month. 🙏🙏

2,706 Views
Message 1292 of 2,528
Report

Account updated and I had an offer waiting for me! Now here's hoping it doesn't take too long to approve.

Praying for the same good news for you all soon! (:

2,623 Views
Message 1293 of 2,528
Report

Awesome! What were your metrics and percentage?

2,608 Views
Message 1294 of 2,528
Report

Awesome news. Congrats. My offer came a couple weeks ago and it took less than 5 minutes for approval and deposit into my square account. I’m in my 5th loan, 4 of them took 5-30 minutes.  I think one took like 8-9 hours. 

2,526 Views
Message 1295 of 2,528
Report

JJpainting I know you’ve been waiting for a while now, congrats!

2,109 Views
Message 1296 of 2,528
Report
Square Champion

Congratulations!!!! That's a couple posted this week!

Square Champion, Square Champion Innoventor, Square Champion Expert, Square Champion
Advisor.
2,339 Views
Message 1297 of 2,528
Report

2 weeks and still no offer. All paid off and all in green. Wish I knew how they work these loans and why it's such a big secret! 😔 

2,475 Views
Message 1298 of 2,528
Report

Just received an email congratulating me on paying off my previous loan but no new offer. That's a start I suppose!

2,445 Views
Message 1299 of 2,528
Report

Just hit 90% paid off, still hoping that an offer comes through.  Last week sales dipped and dropped into “needs work”. Had a few bigger transactions at the beginning of this week so we’re back to all green. 

Hitting our slow season, so could really use it now.  Good luck to everyone else waiting! 

2,358 Views
Message 1300 of 2,528
Report

Just hit 90%, hoping for an offer.   Sales dipped last week and put us into ‘needs work’, but have been all green since Monday. 

We’re going into our slow season, and usually have the loan by now to help us through.  Good luck to everyone else that is still waiting!   

2,340 Views
Message 1301 of 2,528
Report

we just hit 90% too! sales have been better today than last week and the last couple days. crossing my fingers and toes 

2,148 Views
Message 1302 of 2,528
Report