Business types eligible for square loans?

[Nailjerks2]

Hi! Does anyone know what business types are eligible for square loans?

currently had a loan out with square and I paid it within two months. Before I finished paying I did have an offer for another loan which I did not take and once I made the final payment my loan offer was gone and I haven’t got another loan offer since and it’s been over a month. I also am not able to see the factors for eligibility page that Was just rolled out either it’s no longer working for my location so when I ask why my factors page isn’t showing via email customer service person they said my business type is ineligible, so my question is do you guys know what business types are in ineligible and eligible for square loans?

I had a hard time communicating via email with Square loans because it seems like they don’t understand my questions or they think I just am bummed that I’m not offered a new loan which is somewhat the case but I wanted to know more information on what it is to qualify for a loan if I’m not even seeing the factors page anymore.

[TheRealChipA]

@Nailjerks2 That’s the first time I’ve heard about a “business type” that is eligible to process payments on the Square platform being ineligible for loans.  What is your business type?  I’ve always assumed that if Square signs accepts you as a vendor, you could be eligible for a loan if you meet all of the other guidelines here — https://squareup.com/help/us/en/article/6454-square-capital-eligibility-faqs

Of course, even if you meet every one of them, that is no guarantee of an offer.  We’ve all been there at some point, I think.

Regards,

[BoomBoomGames]

Following for updates.  I as well had paid off about 46% of my current loan, then wired in a lump sum to finalize the loan before the upcoming fall season, and now after THREE previous loans, it tells me my business type is not eligible. ???  Ive literally had THREE loans opened and paid with Square, same business type, same address, same everything - suddenly were not?  I only care because I like the option if in a pinch to know Square has my back with a cash infusion.  

Im very confused.  Square loans also isnt customer friendly for customer service questions, so its nearly impossible to find out why.

[KGD1]

I was also told my business is not eligible? I perform installs and service work, been taking square for over 6 months and processed almost $150k. I finally hit my 6 month mark and they tell me my business TYPE is not eligible for square loans. This is the only reason I switched to square and they can’t give me an answer why? I guess I’m not important to them for a genuine response instead of the generic crap they spew. Does anyone have a list of “non eligible business types”? Bunch of horse picky if you ask me 

[Gavindwyer]

Has anybody gotten an answer to this?  I’m seriously considering seeking legal counsel. 

[PartyManiaMD]

There are a variety of reasons you may not be eligible for a loan, much like any lender Square looks at a ton of factors when it comes to why you haven't been offered a loan. Everything from your processing volume to how long you've been in business and also the state of Square's loan department will affect any loan offers coming from Square.

As others have said if you're eligible to sell on Square you should see offers based on your processing volume and how long you've been in business, Square does more than most lenders to show you how they determine loans. They aren't legally required to offer loans and I'm glad it's a tool we have, paying legal counsel to tell you this would be a waste of your money.

Best of luck and hang in there, lots of struggling businesses are still struggling even with Square loans.

[Gavindwyer]

I’m not struggling. 
we wen from a 5 to 7 figure business in two years. 

I have executed 6 loans from start to finish in 2-4 months max. 

All of a sudden they say my “type of business” doesn't qualify. Veteran owned? Small? Disabled owned? Successful? What is my type of business? And why had my type of business changed? 

Discrimination is illegal. 

[PartyManiaMD]

No doubt Discrimination is illegal however they don't determine loan eligibility based on anything that would remotely be caused by discrimination. They don't base it on whether you're a veteran, minority, or any other factors that could be considered discrimination.

Have you tried reaching out to Square for clarification? 

You say you've had 6 loans from start to finish in 2-4 months, if you're paying them off super quickly it could look like you're just taking loans and then using them to pay off said loans, processing volume is important as is the length of your account history.

Again, I'm just speculating and congratulations on achieving 7 figures in 2 years, considering many businesses are struggling that's quite impressive.

Best of luck

[Gavindwyer]

Yes, I have sought out answers and square refuses to give them and just hangs up on me. They’ve hung up on me twice. I’ve been very professional up to this point. The message is not the typical you do not qualify for a loan at this time the messages “your type of business is in eligible from this program.” Nothing in my business has changed, so why is it all of a sudden ineligible. I’ve been a long time customer and starting at three new businesses and now I’m considering other options instead of Square because the last six months have been nothing but problems.

[AllNewU]

My business is also ineligible. I'm guessing it is the state of the loan department. I got a loan from another company since square has deemed me ineligible with over 900K in processing and we are doing better than last year. I was told that I have too many loans. I can get loans and have paid off about 5. I have been using square for about 7 or 8 years now. Banks are being extremely cautious so I am guessing you should look elsewhere for funding. I continue to check but now I am putting the money in a savings account and will use my own money to fund my business. Best of luck!