New Square Loan in 2024

[SPPhotography1]

I’m at a bit of a loss for what else I need to do to be offered a new Square Loan at this point. I’ve been with Square for over 10 years, had 7 loans now that I’ve have paid back early every single time. Metrics are all in green, record sales year. In 2023, record numbers across the board, no refunds, no complaints or issues of any kind in our entire history. Current loan is 80% paid off, but no new offer in site. This is the kind of stuff that causes businesses to find someone else to process through! Please help! I’m sure I’ll get the same old excuses that you guys send to everyone about looking at every aspect of the business. But there isn’t a single aspect that isn’t way up. I’m not sure if there is a new process they are using now, or if there is some kind of issue with my banking or something else I’m not thinking about or aware of. Any help would be much appreciated. Thanks, because I could really use some new capital to start the year off with and reinvest into my business!

[TheRealChipA]

Hi @msirois1985.  You didn’t ask for help or advice here.  It seems that you might be just venting and letting off frustration, but I’ll offer a little perspective here.  If you didn’t want that, you can stop reading now, and please accept my apologies for being so forward.

Loan offers are regulated by an algorithm that monitors our accounts, our card processing volume, etc, and will send us an offer when it determines we are eligible.  This can take days, sometimes, and weeks, other times.  I’ve even heard of months passing before a new offer is sent.  It would be wise to keep in mind that the lending market worldwide is in a crunch right now.  Lenders — even card processing merchant loans like Square — are being very conservative and limiting their exposure on their balance sheets right now.  This means that new loan offers are coming later than they might have in the past.  It also means that many sellers are seeing lower offers even if they have higher card processing volume.  Hopefully, the lending market will ease up as 2024 progresses, but of course there are no promises.  If you are absolutely hurting and need a loan now, your best bet would be to reach out to a local bank.

Best of luck,

[Twpchair]

Did you pay it by processing cards or make a payment yourself? There is a difference between the two as far as loans an eligibility period. If you paid it off yourself you will have to wait 7-10 business days before you go back into the process of the algorithm. If you paid it off by processing cards then you just need the algorithm to pick it up. Good luck it has been a good couple of weeks since I have seen anyone post I received a loan. 

[Downtimedawn]

I didn't realize the loan offers had slowed until I came here to read.  I was fully expecting a new offer when I hit 70-75 which had been the highest I'd ever had to pay. All of my loans have been paid off with a new offer in 3 months or less so I was really surprised not to get anything yet.  Bummed but hopefully soon

[Pecard81]

I just received an offer and accepted it, I am at 84% paid back in 4 months, loan is higher then my December loan, but still down from previous ones.   I’ll keep you posted when approved and funded 🙏🙏🙏

[Twpchair]

Congratulations!!!!! I am happy to see that it came through for you!

[Twpchair]

It is rough right now unfortunately. Many lending institutions are holding tight right now. The market is all over the place! Hopefully, things will settle down soon and lenders will start picking up! Good luck and keep plugging along!

[Twpchair]

Unfortunately, since early summer the percentage rate paid back is trending higher paid back. Lenders are holding tight right now. Square is still doing loans daily just the good Ole days of 70% are gone for the most part right now. Good luck!

[VanKalkerFarms]

Loans have done the exact opposite of slowed, there are more loans everyday than last year which also was a recored etc.  Right now 1 new loan is start, not offered but accepted and started, EVERY minute.  That is incredible.
 Now it may be that the percentage paid back has or has not changed, personally I don't get why it would even be an option to be 70% paid back on a loan to then get another loan and have a lot of that loan go to paying back the first loan creating a circle of fees and payments digging you deeper into needing loans.

[Twpchair]

I agree 💯 my last loan was 81% paid back ok fine. My loan in June was 91% paid back! I prefer the upper 90s! I am getting more of the money instead of rolling over 30% to the new loan and that means less money! I try to tell people hold on square is still lending every single day! Unfortunately, they all don't post here. They could do away with the 70-75 % paid off and it wouldn't hurt my feelings! I was one who was in favor of the talks about a line of credit vs loans. Those talks didn't last long. Have a great day!

[VanKalkerFarms]

Absolutely, a line of credit is the way to go. 

[mydpins]

Update, as of right now at 94% paid on a $70K loan and no new offer. 

[Twpchair]

Hopefully very soon!! Good luck to you!

[ohboi]

70k? Sheesh, how much are you processing monthly to recieve an offer like that. I’m processing 323k-375k yearly and all I get is 8-11k loan.

[Jose22282]

At 94% as well and no offer. I’ve never seen it take this long to get another offer. Hopefully we get offers soon. 

[Twpchair]

The percentage for most (not all) is higher paid off before the next loan. This has been going on since early summer. I don't know if we will see the old days of 70% loans. Good luck and hopefully soon!

[hadaniels]

At 80% on a $30K and on my 4th Loan.  All previous done within 6 months.  All green across the board and $250K or more processing consistently for past 3 years.  Previously was offered at around 70-75%.  Reached out to Customer Service and got a repeat of exactly what is written on website (didn't even bother to try to explain if criteria changed).  Looking at other POS Systems now as Square has gone downhill in the past 12 months and with Customer Service like robots, I am afraid it will continue.

[Twpchair]

This has been the trend from the summer till now. A higher percentage paid back for most. My last one was 81/84% paid back in March and June was 91% paid off before I received a new offer. Good luck to you!

[Luckyme1]

Yep, me too. Your numbers (almost all of them) are identical to mine. Waiting at 79%. Good luck!

[Twpchair]

Any news yet? 

[Twpchair]

Any news yet? Hopefully, you received an offer! Good luck to you!

[VanKalkerFarms]

Well this past Thursday  was quarter 1 2024 earning results day for Block/Square.  Square loans up huge again this year.

Square Loans facilitated 129,000 loans totaling $1.32 billion in originations, up 17% year over year.  That's huge with an average of 1,450 loans per Day!  and an average of $10,200 per loan.  129,000 in 91 days (131,040 minutes) so almost exactly 1 loan per minute all day every day non stop.

So while it may seem like you aren't getting a loan for whatever reason, there are literally over 10,000 loans happening a week.  Personally I think Square even starting to offer loans before the first one is paid off was a complicated decision.  Because once you get the taste at 73% or whatever now you think that is standard.

Best of luck to everyone in your businesses and may your cash registers sing.