How long does it take to get the first loan offer?

encore2design — Sat, 20 Sep 2025 12:23:58 GMT

I own a retail consignment boutique. I have processed 3 times the $10,000 minimum in the last 60 -90 days, we are open and processing 7 days a week, never had a dispute or chargeback and have Excellent on all criteria on my dashboard---but I have not received an offer and I could desperately use the funds. How long does it typically take to receive your first offer? I am getting a little concerned that I am not going to get one any time soon and it is part of the reason I chose to use Square in the first place....any intel?

Re: How long does it take to get the first loan offer?

TheRealChipA — Fri, 26 Apr 2024 19:10:51 GMT

Hi @encore2design. Unfortunately, there is no hard-and-fast rule about when an offer will come. You may or may not be aware, but loan offers are sent by a loan algorithm that constantly monitors our account activity and card processing. Even though you may be “green” on all loan criteria, that is never a guarantee of a loan or a new loan offer after one is completed. Square employees are unable to intervene or change how the algorithm makes its decisions, also. When loan offers come, they come. That’s just the cold, hard reality of it.

After I started processing with Square, it took a few years before I got my first loan offer. Offers usually start out small, and are never more than the algorithm thinks you can reasonably and comfortably pay back in 12-18 months, preferably 12 months. So, not to dissuade you, but even if you do get an offer soon, don’t expect it to be a lot. Since these loans are paid back with a fixed percentage of card sales every day, Square doesn’t want us to get in over our heads by taking too much of our money for loan repayment.

It may or may not help to keep in mind that the lending market worldwide is in a crunch right now. Lenders — even card processing merchant loans like Square — are being very conservative and limiting their exposure on their balance sheets right now. This means that loan offers are coming later than they might have in the past. It also means that many sellers are seeing lower offers than they might expect right now. Hopefully, the lending market will ease up as 2024 progresses, but of course there are no promises. If you are absolutely hurting and need a loan now, your best bet would be to reach out to a local bank.

Lastly, resist the urge to switch processors in hopes you’ll get a loan offer from them. First, that will just reset the clock since you are starting over with them. Also, all processors are in the same boat as far as the lending market goes. They all have responsibilities to their shareholders and must be careful of their exposure on their balance sheets, especially in this current market. If you really must have a loan for your business to survive, you’d be wise to reach out to your local bank. But switching processors in hopes of a loan is never a wise move.

Sorry to be the bearer of news you probably don’t want to hear. I wish you luck, and hope that a loan offer gets to you soon.

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How long does it take to get the first loan offer?

Re: How long does it take to get the first loan offer?