How Long After A Previous Loan Denial Should We Expect To Become Eligible For Another Loan?

[Noah1441]

In January of 24', i was given a loan offer from Square. I submitted the application and required documentation immediately. Two days later, i received an email stating our application was denied due to "Other business debt" from a loan we had out at the time. No big deal.

Now here we are, six months later, and i have not been able to receive a straight answer on how long the prior loan being denied will be held against me. In the Square eligibility page, everything is marked "good" except the prior loan application tab says "needs work".

The "other business debt" has been paid off for quite some time now, and i have sent quite a few emails just asking when the "needs work" tab may be removed, so that my account may become eligible again for another loan. Everytime i get the same automated "We have no way of predicting when you may become eligible again".

We have only ever had one loan with square that was paid off in full, with no missed payments. We have processed just under one million in credit card sales since this time last year, with a large increase since last year. I feel we would be eligible for funding, if they would remove the "flag".

Has anyone ever had a loan denied before, and then received another offer? We are about ready to start looking in to additional funding, and i would prefer to work with Square once again, opposed to one of the other companies.

[Ukfan40219]

I was declined for a loan in January and wanted to know how long it takes to go from needs work to good. If anyone else has had this problem some kind of timeline would be awesome. 

[Candlestore]

@Ukfan40219 ;

Square has a formula based on your Credit card sales.  So when your offered a Loan from Square is based on your business and everyone has something different.  The only way to see for sure is to keep checking your Square dashboard-Loans  Then on this screen look at your Next Loan Eligibility.  Charge Backs, and Steady Processing Volume are 2 main reasons for Square giving loans, then Charge Backs can also factor in to this.   My advise is just keep taking Credit Card payments, and conducting business as best you can till you do get offered another loan.   Other than that you can try Square Support and see what they say, their number is in my signature line below.

[Sammie_C]

Hi @Noah1441!

Thank you for your post!

We understand that not receiving a loan can be frustrating. We want to assure you that this will not adversely affect your credit history or impact your ability to use other Square products.

Keep in mind, your business may become eligible for another offer down the road. At this time, we can’t predict if or when your business may be eligible for an additional Square Loan. We will continue to monitor your account for eligibility and will be sure to notify you by email and in your Square Dashboard if your business becomes eligible for a loan offer at a later time. If you have additional questions regarding eligibility for a Square Loan, feel free to view our FAQ.

Let us know if you have any other questions!