Hey there @Dvcarwash1
I understand your frustrations, believe me.
I’m going to post the same reply here that I have to other sellers. If you’ve read it, apologies, but nothing has changed since I first started posting this basic reply a year ago. In fact, in the past three months, the lending market seems to be going in the wrong direction and getting tighter. I‘m also going to add that my peers who use Clover, etc, are having the same exact gripes. So leaving Square for “greener pastures” probably won’t make things better. In fact, most of them make you wait six months to a year before even considering you.
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Square is giving out loans right now. However the lending market is still really, really tight and conservative, and this includes merchant-advance type loans such as Square’s, PayPal’s, Clover’s, etc. Interest rates for these companies to borrow are still crazy high and even if Square is not borrowing to give us our loans they still have to answer to shareholders and such for the health of their balance sheets, especially where lending is involved. Also, many businesses (even ones who were never in trouble before) are defaulting on loans at an unprecedented rate currently. All lenders of all types are being very cautious and deliberate. Those are just the facts.
I’ve seen enough threads here in the Community to know that many sellers (and if I were a better man I’d say most sellers) are noticing two things. First they are having to wait much longer than usual for a new offer, and quite a few are waiting long (weeks, months) after they have paid off a loan before a new offer comes. For at least a year, 80% is usually not enough, for sure. Second, even when new offers come they are often lower than usual/expected. This is true even if our sales are the same or better than in the past, mostly because inflation is now eating into our profits and Square does not want to see us get into trouble with loans we ultimately can’t handle. I’ll even add that I’ve seen a few threads recently where sellers complained about getting a “pre-approved” offer (which means nothing from any lender and never has!) and then being rejected once the application was submitted. This is just the reality of the current lending market.
My only suggestion would be to look around and see if a local bank (yours would be best) is willing to lend you the money. Of course, the same things I said will apply to them, obviously. But otherwise all you can do is wait for the offer. It will come eventually. This is shaping up to be a really tough year, political promises aside. The market is dropping each day. Inflation is showing signs of going up soon. And interest rates are definitely poised to start rising again. Square is not immune to any of the lending pressures, I’m sorry to say.
I wish you well.
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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