thread Re: Cash Advances in Banking With Square

Declined For Cash Advances

Axwoman — Sat, 20 Sep 2025 12:32:46 GMT

The title of this thread has been edited from the original: "Cash Advances"

Why am I denied a loan, although I have had two every year for 4 years from square due to cash advances? Square makes money on that too yet they deny me a loan due to cash advances of my own money, although also I have tripled my sales over the years.

Re: Cash Advances

jules72 — Mon, 28 Mar 2022 22:02:55 GMT

Hi @Axwoman,

Thanks for reaching out! Since this is an account specific question, I followed up with you via email.

Re: Cash Advances

Magik5tattoo — Mon, 02 May 2022 12:01:28 GMT

Seems like square is being much more reluctant to actually approve loans right now. I can see their side in why cash advances is frowned upon because it inflates sales and they want an accurate assessment of your business to offer you the right amount of capital. But to deny loans seems like the wrong route. I’m sure it’s just an algorithm that’s denying it. They should have a person look at each of these situations and determine how much was cash advanced and adjust there offers instead of flat out denying. Noones perfect hopefully square will make the changes, can I ask what % were you at when offered and denied and where are you at now? I usually get offers 70-90%

Re: Cash Advances

thorne816 — Mon, 16 May 2022 23:52:05 GMT

You must want me to cancel my account. If I made 150K and im denied for $100 dollars I will move to shopify. I used square for years but it is not worth using anymore.

Re: Cash Advances

vickie_ — Wed, 18 May 2022 21:27:04 GMT

Hi @thorne816,

Thank you for reaching out with your concerns. Our team has followed up with you over email since this is an account specific concern.

Re: Cash Advances

BigA — Thu, 19 May 2022 15:46:33 GMT

I am at 75% now and no new offer and I have been with square for many years and have had over 10 loans total. Does anyone know if they are still making loans and if so what percentage are you seeing the offer come in at now?

Re: Cash Advances

thorne816 — Thu, 19 May 2022 15:48:32 GMT

Yeah I got mine at 78% then got denied from buying merchandise from my store mind you I’m an llc not a sole proprietor I have employees I am an employee

Re: Cash Advances

BigA — Thu, 19 May 2022 16:09:31 GMT

Can i make sure I understand? So you got an offer and then when you accepted it they denied you? I am confused on the "denied from buying merchandise" part. When i receive a loan they deposit into my account and Square cannot deny any swipes in your personal account. I could be totally confused that is why i am wanting to understand your scenario. Thank you for responding.

Re: Cash Advances

thorne816 — Thu, 19 May 2022 16:51:37 GMT

Yes that is exactly what happened they sent me something saying you can not buy from your store friends nor family and they denied a 9000 loan

Re: Cash Advances

Magik5tattoo — Thu, 19 May 2022 16:55:55 GMT

At 98% and no offer, I’ve repaid 13 loans with them, making the decision this week to go ahead and switch to PayPal, square has unfortunately forgot what helped get them where they are, helping small businesses.

Re: Cash Advances

BigA — Thu, 19 May 2022 17:02:13 GMT

Can i ask do you get your square loan put in a business account or on your square card? I am only asking because i still am stumped on how they are declining you for purchases??? How do they know what you purchase? I do not bank with square or use the square card they sent me years ago.. I just process with square and everything is deposited into my account at my primary bank so to me this scenario is bigger than square capital it is a very "big brother" type of situation if they can see what your doing with your bank and purchases unless its that you bank with them or use the square card which I do not do. I also dont have a business where i can buy from myself as I am a barber and dont cut my own hair so no issues there for me and even if I did cut my own hair i wouoldnt charge myself.......LOL I really just need to determine if square is going to continue offeriing capital consistenly and if not then what other companies are because we do offer square a huge amount of income off the processing and loans that i am sure another business would love have and based on the discussion boards seems many are looking to leave square due to unrealiability with loans. Thank you for your time.

Re: Cash Advances

thorne816 — Thu, 19 May 2022 17:14:25 GMT

I own a boutique so I have to get clothes from my business all the time. If I see something I want to buy I but it with my personal debit card. This is from another bank all together not square. I have a square debit card but that has nothing to do with the decline. The saw my personal debit card and I purchased from my business. They said "Hey, you cannot purchase from your business. My business is a corportation so I have to make purchases from my business. I am not a sole proprietorship. Yes, square is being a big brother and will find anything to cancel your loan. I guess I will have to seek legal advice on this. Shopify also offers processing and loans. I opened my shopify account back up. I am just paying off this loan then will stop working with them.

Re: Cash Advances

vickie_ — Fri, 20 May 2022 20:49:48 GMT

Hi @MAGIK5TATTOO,

Thank you for reaching out.

Square Loans are currently offered by invitation. While you are processing with Square, Square Financial Services automatically reviews your processing activity to evaluate loan offer eligibility. If we spot that you’re eligible to apply for a Square Loan, we’ll proactively reach out to you (via email and in your Square Dashboard) with a customized loan offer.

Potential offers are based on many factors related to your business including, but not limited to, your current payment processing volume, your customer mix, and your Square account history. You can learn more about how your business may become eligible for a loan in our Support Center.

We know that you dedicate much of your time and resources to your business. You do not need to contact us or provide any additional information to become eligible for a loan offer. If your business is eligible to apply for a Square loan, we’ll notify you by email and through your Square Dashboard.

Re: Cash Advances

thorne816 — Tue, 05 Jul 2022 15:23:22 GMT

Did you ever get a new offer. I have like 200 more dollars to pay and no offer. This is crazy cause I need to get ready for back to school rush.

Re: Cash Advances

Magik5tattoo — Mon, 18 Jul 2022 23:14:55 GMT

We did eventually get a new loan offer approved, no longer upset at square, and there is hope for everyone that they are still lending just keep processing and focus on growing your business.

Re: Cash Advances

thorne816 — Mon, 18 Jul 2022 23:24:02 GMT

how long after paying off your loan did you receive a new offer.

Re: Cash Advances

Magik5tattoo — Mon, 18 Jul 2022 23:43:16 GMT

3-4 months

Re: Cash Advances

SoCoMissionBch — Thu, 21 Jul 2022 19:14:53 GMT

Not our experience. We are on our 3rd loan with the last one being offered when the previous loan was at around 70% paid. The new offer was over double the previous offer, approval was the day of or the next day after we applied and it was funded the following day or two. Our current loan was funded about a week ago give or take. Super easy and fast, at least it has been for us.

Re: Cash Advances

SoCoMissionBch — Thu, 21 Jul 2022 19:18:55 GMT

yes. we just got our 3rd and were at about 70%. early July 2022. I think it is a super complicated algorithm that generates offers and is based on minute details about you, your business, habits, volume, and type of sales you make. Sit tight, your offer will come in due time I'm sure. Good Luck.

Re: Cash Advances

SoCoMissionBch — Thu, 21 Jul 2022 19:35:34 GMT

Your issue my friend is much bigger than an issue with Square itself. I believe it is actually a blanket card processing industry policy and in some cases a law perhaps that you can not use your own cards at a business you have any vested interest in or control over. The reason for this is simple. #1 Money laundering. #2 Fraud. If you use your card at your own store, what's to stop you from taking say a 500$ swipe at the store with your personal AMEX card and then collecting the cash via instant transfer? It's an illegal cash advance as far as I know. It's not a "big Brother" issue as another person commented. It's all part of that magnetic strip/chip built into the card. It contains a huge amount of data about you, your account, and your personal identifying info. I assume the companies have systems to automatically check cards that are swiped for any similarities in information to the data you provided them when setting up your merchant account. This I would guess is how they knew you were using your card at your own store. Big no no. If you want something from your own store, the best bet is to use cash to buy it or have a friend buy it with their card and pay them back. This is my understanding, not the square policy I am referring to but I think it's pretty close to how they do it as well.