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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!
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.
Good news, bad news, eh @cmeshine. There are a number of reasons that COULD be part of why your new offer was lower.
- 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.
- 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.
- 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.
- 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.
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
Click here to see a list of third-party apps I use to add functionality to my Square account!
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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.
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Just received an email congratulating me on paying off my previous loan but no new offer. That's a start I suppose!
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!
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!
we just hit 90% too! sales have been better today than last week and the last couple days. crossing my fingers and toes
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I think mine is delayed because I went out of town Sunday-Tuesday, and then hit 75% on Wednesday. 20 loans in 10 years and I’ve never had to go beyond 75%. We’ll see what happens…
Good luck! Hopefully, they push some out faster! A lot have been on here a good month or longer!
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Mine has always gone to "needs work " every Wednesday since we're closed Monday through Wednesday. Seems like they'd take hours of operation into consideration. Best of luck to you!
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Sales been good so far today so praying for a breakthrough TODAY in Jesus name! Not just for me but for all of us waiting! Happy Friday Everyone!
(1 month 1 week paid off)
Amen!
Thank you 😊 and praying for all of us waiting.
Just received a loan!
Finally! Just wanted to let everyone know. Much larger than the last loan. Very happy. Slow months till December for me.
Oh, btw...I sent the info in and bam it's in my account! Ty Square!
Awesome! GREAT NEWS!! Hopefully more will come through!
Yessssssssss! About 20 of you need to get funded!
Congratulations!
Busy weekend with lots of processing. Let’s hope it keeps up.
Good luck everyone.
Congratulations!!! What were your metrics, if you don't mind?
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Congratulations!!!!! So glad to hear this! Let's keep this rolling!
Congratulations! Were you completely paid off?
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Congratulations! Well over due! Let's keep these rolling!
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Had a great daytime so far! Hoping for something to move today! 🙏 Good Luck to all of you waiting!
Hopefully it's your day! We've had a great weekend so far great sales, but still 75% cash. We're at 86% all in green and still no offer. Could possibly hit 87% by tonight if the traffic keeps up as it started this morning.
We have had a major cash and check week! This was our busiest cash week all year! No reason for it usually we have an odd day of cash but not the whole week!