thread Re: Loan amount in Banking With Square

Loan amount

mustardseed21 — Sat, 20 Sep 2025 12:25:06 GMT

Hello,

I know loans are different for everyone and I know no one has a clue about the alogorithiam of loan approvals. I just want to see other peoples experiences with loan amounts. I’m moving my store soon and I could really use a larger loan but I’ve processed about $78,000 give and take within the last year. My current loan was for $10,350 and I’m looking for more than that for my next loan. My loans have doubled since I started off with $1,200. Could I possibly double my current loan to $20,000 or would that be too high for my numbers? I wish Square made it more clear what to expect and when. Thank you for your feedback!

Re: Loan amount

Candlestore — Sat, 02 Mar 2024 16:24:37 GMT

@mustardseed21 ;

The expectation of $20,000 when your only doing $78,000 in sales (If they were all CC sales) which is another KEY factor. Square does not use Gross or Net Sales for Loan amounts but uses the $ amount of CC sales to determine the $ amount of Loan offers. The other thing is with Square offers they are not determined by Yearly Sales on a CC but by weekly CC sales volume, I believe. The reason I say this is in 2020 I was over $245,000 not all on CC sales. Febuary 2021 I was looking for loans to buy new inventory. I was getting $5000 or $0.00 offers from Square and these amounts changed weekly. If the prior week was slow I got $0.00, Busy I may have goten a $5000 or $9000 offer. I learned that During my Busy Season (High CC sales) I was getting offers double or triple these amounts. During Slow times when I needed or wanted a loan the amounts we really LOW (LOW CC sales).

So if you keep making sales and get your CC prosseing highed you could Double your offer, but I do not think it would be overnight. This may take a few months to get the offer to double, and a steady higher CC processing average per day, week, and month.

Again since I do not work for Square and do not know their algorythems for Loans I am only making assumptions here, from my point of view.

Re: Loan amount

mustardseed21 — Sat, 02 Mar 2024 17:56:18 GMT

Thank you for your response. $78,000 are CC only. With cash, I go over $100,000. I’m currently on a $10,350 loan with 81% paid off. I’m really hoping I get more than that when my loan renews. I’ll be moving into a much larger store, in a better location, very soon and could use extra funds for the deposits, moving costs, marketing and more inventory.

The fact you are over double the amount of my yearly sales but your loans never went over $9,000 makes me question what I thought I knew about Square loans lol! I wish I understood their metrics better.

Re: Loan amount

Candlestore — Sat, 02 Mar 2024 22:39:44 GMT

@mustardseed21 ,

During my slow time the matrix had me from 0 - 9000...... Jan- March....... Busy Time July through Dec..... "I learned that During my Busy Season (High CC sales) I was getting offers double or triple these amounts. " So I got offers from 3 x0 to 3 x $9000 so they did go over the $10,000 mark.

Re: Loan amount

mustardseed21 — Sat, 09 Mar 2024 20:23:09 GMT

So I got a loan offer at 83% paid off but it came in only after I linked my bank account, which I was putting off. The offer is over $2000 less than my last loan. That’s so irritating to almost pay off a $10,350 loan in 6 months and then be offered $8,200. I’m considering switching to a company who helps me invest in my business. My sales have increased since the last loan, too. So this offer makes no sense.

Re: Loan amount

_Violet — Sun, 10 Mar 2024 17:50:18 GMT

Hi @mustardseed21 - Thanks for reaching out to us here on the Square Seller Community. I can provide some additional context regarding Square Loan Eligibility.

There are many factors that may affect your eligibility, and accounts are evaluated as a whole. Please be sure to check your Square Dashboard for more information about your current eligibility status. Here are a few factors we consider when evaluating your business for an offer, in our Support Center.

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