Roger, that's very intriguing, but not surprising. I just got an offer that caught me off guard. But when I delved into it (using Square AI to do some trend analysis), it was obvious that the loan algorithm was seeing similar trends to my internal analysis. Growth is showing a lot of potential for me this year, so card volume potential is showing the same growth estimate. My offer was much larger than I expected since I'm seasonal and just starting to move into the high season.
Honestly, I'm not taking the offer. If I do so now at the beginning of my busy season (like you are), I'll pay it off in less than 6 months. That means that my effective APR% is going to be stupid, bordering on usury. That's just throwing away money for no good reason. LOL. So it makes more sense for me to "borrow from myself" and do the same thing I would do with a loan only without the loan fee being tacked on top.
All of my past loans have been taken out at the end of my season as I head into the off season. That is the only thing that makes financial sense for me and that will never change. Still it's good to know that the algorithm is firmly in sync with my business patterns (after a decade with Square). Of course, it also helps that I have a revolving LOC with my bank -- less pressure to make a stupid financial move.
Still, congrats. It seems like you are on a good track.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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