Loan repayment fees do not match their reports.

[makesnocents]

Is anyone else having this issue?

The loan activity report states one amount for the repayment fee for a specific date but their deposits reflect additional fees, not subtracted from the loan or stated elsewhere on their reports?

I have had accounting issues due to this. Then when I call, the explanation is because their fees are cut off at different times of the day but they do not reflect these additional fees on their reports and they are also not subtracted from the loan.

[TheRealChipA · Accepted solution]

Hey there @makesnocents.  I have found that the most accurate way to determine the fees that were deducted for any given day is to go to the balance page on my web dashboard.  Select the location and find the “Balance Overview” section.  If you click on the “Payment Processing” line it will expand and show you a line item for “Square Loan repayments.”  This is the non-pending/posted amount of loan payments processed for that day and is always 100% accurate for accounting purposes.  

The loan activity list seems to show payments that are completed and posted for a given date.  This will always include pending payments that occurred after the cutoff time on one day and payments that are occurred before the cutoff time on the next day, which renders that particular list as unsuitable for accounting purposes.  The method I describe above is the only currently accounting-accurate way to track loan payments that are taken out of our card processing.

[makesnocents]

Have you requested reports from them other than what you can see on  their website? I tried to get a report that shows monthly how much I was charged in loan fees and they don't.

Have you added up all of the fees for the month and balanced it with your loan balance? I found that they also only deduct from your loan the amount reflected on the report that does not include the fees after their cut off time, when they actually deduct more after the cut off time. They also conveniently cannot provide a report for your loan balance at the beginning or the end of any month. You have to do your own calculations. It's a rip off and a little hard to believe they provide loans and don't provide monthly statements. Every other creditor does.

[TheRealChipA]

@makesnocents I have never even considered asking them to do a custom report for me.  Nor have I ever considered asking anyone to do one for me.  I can’t help with your questions some, though.

First, I am assuming that by “loan fees” you are referring to daily repayments, not the the loan fees that are added to our loans when we receive them.  

Otherwise, when I take out a loan, I create a liability account in my accounting system for the loan amount plus the loan fees that are charged.  That is my total loan amount that I have to repay.  Then, on a daily basis, I get the amount repaid to the loan, which I get from the balance overview as I described in a previous post.  So I know every day how much I have left and can run reports in my accounting software showing how much I had at the beginning of the month, how much I paid, and the balance due.  I don’t need Square reports since that is a process best done in my accounting software.

Lastly, I’m not going to get into what every other creditor does or doesn’t do.  The bottom line here is that this is how Square does this currently.  So all we can do is work with the tools and information we have.  After over 10 years with Square (and a handful of loans) I’ve found that my system works perfectly and I don’t give it a second thought.

[makesnocents]

Yes, thank you. It was really confusing but their loan department helped me out as well. I just needed to talk to the right person.