Loan Decline

[nickbob]

Curious if anyone else has any answers or experience with a recent loan decline.  I had an offer back in May.  Did everything like I normally did, and they declined it.  Yep they gave me reasons, would they let me explain that the list they gave me contained truck loans or leases?  Nope.  What I am mainly looking for is if this is like a permanent hole I am stuck in, sure seems like square has changed how they do business.  I’ve been doing these since 2015, never had 1 issue not one, paid them off early, they were great to help along in the slower times or help buy equipment.  Now 6 months later still the same.  Does this go years or never?

[Minion]

HI @nickbob 

Sorry to hear about your denial. What was the reason for a denial?  

[nickbob]

Too many leins or other financial claims.  A lot were cleaned up, but most were for equipment leases.  They did provide a list, but without allowing me to explain I got the ol’ door slammed in my face with the fend for yourself on the FAQ page.  It also said it didn’t affect my credit score, I thought these were based on card sales is why these were so attractive, now a little time has passed I thought things would open up.  But mostly what I’m looking for is if anyone has had similar issues or if square has changed how they do business.  I feel I’m sitting in a better position now than I was when they gave me the 10+ other loans over the past 11 years.  They’ve made a lot of money from me, I feel I deserve a better experience. 

[Minion]

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@nickbob wrote:

Too many leins or other financial claims.  A lot were cleaned up, but most were for equipment leases.  They did provide a list, but without allowing me to explain I got the ol’ door slammed in my face with the fend for yourself on the FAQ page.  It also said it didn’t affect my credit score, I thought these were based on card sales is why these were so attractive, now a little time has passed I thought things would open up.  But mostly what I’m looking for is if anyone has had similar issues or if square has changed how they do business.  I feel I’m sitting in a better position now than I was when they gave me the 10+ other loans over the past 11 years.  They’ve made a lot of money from me, I feel I deserve a better experience. 

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Thanks for clarifying.  That is correct and to my understanding it does not affect your credit score (no hard pull, no inquiry), unless you default. With that also there is no loan payment history, on time payments  reported etc so it has its pros and cons.   They do however do and always have done a soft pull on your personal credit as any company that is extending credit will do.  One of the factors for eligibility is card sales among the many other things that is listed in their FAQ and on the loan page for "eligibility:

I couldn't tell you how long it would be before another offer was extended, nor do I think anyone else here could.  I would actually be digging into your credit profile and seeing what you can do to eliminate those liens and other financial claims as those are going to play a part until they drop off.

[nickbob]

Yep.  I was more reaching out to see if they’ve changed how they do business.  A lot of these leins will be dropping off and quite frankly not paying on a square loan has helped pay these other equipment deals off faster.  Unfortunately for square I’ve exceeded sales year after year, and after all is said and done I probably won’t need them.  

[Minion]

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@nickbob wrote:

Yep.  I was more reaching out to see if they’ve changed how they do business.  A lot of these leins will be dropping off and quite frankly not paying on a square loan has helped pay these other equipment deals off faster.  Unfortunately for square I’ve exceeded sales year after year, and after all is said and done I probably won’t need them.  

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I completely understand.  I'm sure someone will be a long to confirm at some point, but as far as I know nothing has changed dramatically, possibly just tightening up on the checks. 

That greats news on possibly not needing a Square loan.  They are fine to use for short term, but when a business becomes dependent on them they do more harm so glad to hear that your business is on the right track.

[Abby_M]

Hi @nickbob 

Thanks for posting on the Seller Community.

We appreciate your interest in Square Loans. Please note that being declined for a Square loan in the past may impact your eligibility. Keep in mind, loan offers are also based on a variety of other factors including, but not limited to, your current payment processing volume, your customer mix, and your Square account history.

Square sellers are periodically reviewed for loan offer eligibility. We’ll 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 any other questions, please feel free to contact us directly!