Capital replenish

[ArtsyNJ]

Currently at 86% paid into my 7th capital loan.

EVERY aspect of my personal and business life is waiting on this to be replenished. I am drowning in debt and square loan team doesn’t have the answers. They say it’s an algorithm…but every loan in past was replenished at 75%

in addition to; I’ve always had an account representative. Mine has been out of office since December and will not return until July!

could use some help!

[TheRealChipA]

Hi there @ArtsyNJ.. I'm sorry to hear about the stress in your life and business right now.  I hope that gets better sooner rather than later.  Unfortunately, Square loan offers are entirely handled by an algorithm, with no human intervention.  Our accounts are evaluated regularly (daily or at least weekly) and offers go out when they go out.  I can say that for the past year or more, those offers have been coming much later than everyone is used to -- usually in the 90%+ range, with many not getting new offers until existing loans are paid off.  This is a side effect of the economy right, interest rates, recession fears, etc.  All lenders everywhere are being very cautious and conservative.

I also know that offers are going out.  I have one right now, but don't need or want it.  And I know other sellers who received offers sooner than that 90%+ I mentioned.  But in every case, their business and card processing volume was up significantly over last year, which was probably the biggest factor for them receiving a new offer so quickly.  If you business is experiencing trouble as you alluded to, and that trouble includes declining card volume or even flat card volume (little or no growth), then that may be part of the delay since Square does not want to help sellers get further in over their heads.  But, that's just my guess based on what I'm seeing.

Like I said, I wish you the best.

[ArtsyNJ]

Thank you for the response. Words I kinda was hoping not to hear but makes sense. 

I am in more trouble than I thought, I guess. 

don’t know what to do at this point, was really relying on this to come through a long time ago, and facing possible liens, judgements and too much debt. 

[HC_Charlie]

Hello @ArtsyNJ thanks for your post, I'm sorry you're having financial challenges right now. @TheRealChipA has some great info here, and unfortunately some of the same factors that Square uses to determine financial eligibility in loan offers are some of the factors that other lenders (like your local bank or credit union) may also take into considerations. But those smaller, local institutions may be an option for you to talk to; instead of waiting on an offer through a larger company like Square, talking face-to-face with someone in your own community may get you help faster.

If you're not currently working with a local bank or credit union with your small business, that would be a first step in starting to establish credit worthiness for yourself and your business. Also local banks have a different perspective on your financials if they are seeing deposits outside of your Square sales. Note there is a place in your Square Dashboard in your LOANS area, where you can connect an outside bank account. This would help Square Banking to see other deposits to your bank account outside of Square. If your processing levels are low, this may help paint a more complete picture of your current financial situation.

 

[ArtsyNJ]

Thank you. Afraid I’ve exhausted all these types of options. Made the mistake of doing a few short term loans which crushed my income and spiraled my credit score into oblivion. 

May be forced to close the business and declare bankruptcy if square doesn’t save me. I guess I made a severe mistake relying on square. Part of me wishes I went with a different POS years ago, now I see why I should have…

[TheRealChipA]

Again @ArtsyNJ I hate hearing about a fellow business owner having these sorts of difficulties.  I will add that it is not just Square that is tightening their merchant cash advance loans.  All lenders like Square are -- Toast, Clover and even banks that offer card processing to their business customers.  This is a world-wide credit crunch that will probably take a while to resolve, and Square like the others is being cautious because they have to be.  I have friends who use other processors and, trust me, they are all experiencing the same loan issues.  Most likely, if you'd gone with, say, Clover you'd now be saying the same things on their boards.  I'll reiterate -- I wish you well and am sorry to hear you are experience these troubles.