Has something changed with loans?

[FirstLook]

Hey all! Just wanted to see if there's been a change to the Square Capital algorithm or something, seems like a more than the usual amount of people haven't been getting offers, and I'm currently at a higher percentage paid back than I have been for over half my previous offers the last 5-6 years with all green metrics and haven't received one yet. I was really hoping to have one by now as they're always a huge help, but reading through this forum makes me lose hope lol. 

Fingers crossed one comes in soon, but just wanted to see if anyone had answers as to things maybe being different with the algorithm or something. Thanks y'all! 

[Minion]

Hey @FirstLook 

I think what you have seen around the forums is all that anyone really knows or is able to say.  There really isn't anything else that anyone can say other than assuming what is going on.  I know many sellers are viewing this as a bad thing, but really it is a good thing as when an offer does come in, you are keeping more of that loan than you would when getting one at 75%, so when looking at it from that way it is a good thing, its just unfortunate for many that they are used to earlier offers.

Personal note, I wish Square would change it entirely to another offer isn't potentially extended until the current loan is 100% paid off.  That would cut out the guessing game as far as % paid back.

[kacey_k]

I couldn’t agree more!! I was very new still when I got my second loan offer and even my third cause it came sooo fast about $1200 more and I was in a rough spot so I accepted and it wasn’t until AFTER about a month I looked it all over and seen how much was used to pay the second loan off. I will never accept a loan any sooner than 80-90% again!! I’m currently at 73% 

My only irk with square is that it’s soooo inconsistent and they REALLY need to make it more universal like you said “Loans will not be offered until X amount of current loan is paid off” 

[Abby_M]

Hi @FirstLook 

Thanks for posting on the Seller Community.

New offers are not automatically extended when a certain percentage of an existing loan is repaid but your business may become eligible for a new offer when your existing plan is closer to being repaid. This timing helps to ensure a significant portion of a new loan can be used to reinvest in your business directly rather than repaying your existing loan balance. 

While you are not currently eligible for an offer, your account is automatically reviewed daily to determine eligibility. 

If you have any other questions, please feel free to contact us directly!

[CTC18]

Hi there! I currently have three locations and each has an active loan. My first location loan is at 60% paid off and my second location loan is at 33%. I’m one month behind on payments on the second loan (it was set up as monthly payment instead of daily percentage of sales). If I were to receive a loan offer for my first location will it be declined regardless due to the second location being behind a month although they’re currently taking a daily percentage toward it? Thank you!

[Abby_M]

Hi @CTC18 

Thanks for posting on the Seller Community.

After you apply for a Square loan, your application goes through underwriting and verification processes to determine whether your business qualifies for the loan you requested. We review every loan application on a case-by-case basis, independently from any previous loan.

When your business is connected to another Square loan, it is important to keep the connected account processing payments consistently until the loan is repaid. If you have one or more accounts that don’t meet this criteria, your loan application may not be approved. We’re unable to take any action to unlink or dissociate the accounts.

Please contact us directly if you have any other questions.

[kacey_k]

I know loans are still being given but it’s the still the same about the inconsistency. I do wish there was more straightforward answers. 

[GAA]

I am 99% paid off. I was going to

just pay it off, but if I’m not going to get a new loan offer then why bother. All I’m swing is ppl waiting for a loan and not getting it. The guidelines have changed for sure.