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!

[Mmccrain]

What percentage was everyone at on their very first loan when they got their second loan offer. I’m seeing 6th+ loan offers but I’m talking about the very first loan percentage when the second offer came in. I’ll be at 60% on my very first loan of ($1600) by the end of today after 35 days of repayment. I’ve had 800% growth and hoping for a new loan offer today.  

[Minion]

Hi @Mmccrain 

From every loan based thread I have seen, and being the first one, looking a when a second offer could come in it honestly seems to trend even higher than people with their 3,4,5 etc loans with offers coming in around the 80%+ offers.  Being only at 60% I wouldn't expect an offer to be in sight for until you reach maybe the 85%+ mark in all honesty. 

Every business is different so its hard to exactly say.  But you could also be one of the few unicorns that an offers gets sent over earlier than the "norm".

.

[Twpchair]

Well, after 12 years you made me go there 😆 and start scrolling! I have to agree with @Minion (like always) the best I could figure out that was different times and we are all different. My first was 1k and paid back quickly also. My 2nd without metrics to help now I would say I was close to 90% give or take a few % points. You're just establishing a relationship with Square and just as important a pattern of your business pattern or activity. At 800% growth that's amazing and I normally see people myself included if I remember correctly it was about 9 months to a year before that I started to receive offers like clockwork between 70-75%. Each again then growing and growing in increasing. Right now things have been different with lenders and they have been holding pretty tight. It was trending for some time now upper 90s to pay off completely! Recently there was a good group of people (longer customers) seeing 70s-80s percentages. Not all of course everyone is different and processes differently. These forums for Square are awesome and so much information and a lot of great people who will help anytime! We truly are the best way to share information or our experiences to help others. Good luck and welcome!

[Parisbarnes]

So question. My loan says paid off 21,350 & I owe 8,700. 

im paid off at 70-% sales are real good. My question is should I make a payment of 2k to help get another loan. I normally get a new offer at 68% but im unsure. Helppp lol

[Twpchair]

You can but here is the downside. 1 it takes 7-10 business days to process and clear their system regardless if they take your payment today. 2. From that point it takes about 10-14 business days for you to go back into the algorithm to process all over again. If you are processing that much you would probably get an offer (no guarantee at all) but the odds are in favor. If I prepay I do it around 40-50% I don’t pay it completely off but get it to around 70-80% that way I get caught in the process of step 1. And step 2 has been iffy for me depending upon how much I paid off during that time period just regular processing. I’m retail furniture and right now our processing is crazy! One week all cards the next week all cash or checks? It’s been like this for about a year. Prior to it was 85/90% cards always. You know what is best for you but I wanted you to know that if you make a payment today and money is gone tonight or tomorrow there are wait times on both and you go back into the algorithm. Paying it off or portions is awesome but timing is everything. Good luck!

[marielmt]

Hi @Parisbarnes!

We appreciate you taking the time to post.

You are able to make additional payments toward your Square loan.  Once a payment has been submitted, it can take up to ten business days for payment confirmation and for your business to be re-evaluated for a new offer. 

We can’t guarantee that you’ll receive a new offer after you make an additional payment or pay off your loan, but if you become eligible, you’ll be notified directly in your Square Dashboard and by email. 

Don’t hesitate to contact us directly if you have further questions or concerns.

[Mmccrain]

I’m starting to think that offers may come in when the new loan would incorporate 10% or less of an old loan remaining? That seems to be the numbers I’m seeing. Also people who’ve had numerous loans seem to have steady business which is where the loans were supposed to get them so their offers slowed down. 

[Mmccrain]

So it appears that a new loan offer can only incorporate 10% of it to cover a previous loan. So a $50,000 loan would allow you to roll only $5,000 into it from a previous loan. 
so these large loans for $50K and up would mean a higher percentage needs to be paid off in order to meet that threshold. If you owe $7000 still on a loan a new offer would have to be over $70,000 to be able to incorporate the $7,000 which is 10% of the new loan. Meaning 90% of the new loan goes to grow your business. A smaller amount owed like $800 means the next loan needs to be over $8,000. This seems to be the metric after studying all the numbers everyone’s posting.

[Minion]

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@Mmccrain wrote:

So it appears that a new loan offer can only incorporate 10% of it to cover a previous loan. So a $50,000 loan would allow you to roll only $5,000 into it from a previous loan. 
so these large loans for $50K and up would mean a higher percentage needs to be paid off in order to meet that threshold. If you owe $7000 still on a loan a new offer would have to be over $70,000 to be able to incorporate the $7,000 which is 10% of the new loan. Meaning 90% of the new loan goes to grow your business. A smaller amount owed like $800 means the next loan needs to be over $8,000. This seems to be the metric after studying all the numbers everyone’s posting.

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I think you could be pretty close to that.  It seems logical, but there are other variations and instances where it seems to be also toward the 85 %.  But this seems to be a a solid piece of information you have come up with from your digging @Mmccrain . Kudos for that. 

In the end though, getting as close to paying off that loan, before accepting another loan is only going to be more beneficial.  

These loans ideally work great for a business also who accept just as much cash and checks as they do CC, extending the loan life to the full 18 month, aligning the fees to a "typical" loan APR of 12% +/-

[TrendzbyM]

I got an offer! 79% today and came in at or before 3pm! It was little more than before so I'm happy!

[Healthyketo]

Congratulations 🎉 I was updated at 1:05pm today and no offer yet 😞 still sitting at 97% hopefully soon! 🙏 happy you finally received one! Pray for the rest of us!

[TrendzbyM]

Thank you! I just realized I edited my address incorrectly so I hope that doesn't delay being approved 

[Mmccrain]

So the “update” time on the website is usually when they process your days payments but the AI analyses the accounts through the day. Mine is checked for loan offer status each night about 9:30pm but the “update” occurs each day about 2:30pm

[Healthyketo]

Thank you that is good to know! 🙂

[TrendzbyM]

I submitted the statement an hour ago and haven't heard back. I'm panicking cause I'm used to an approval right away! It has never taken this long 

[Mmccrain]

Did they offer you a loan or simply need bank verification? 

[TrendzbyM]

Offered me a loan. Then another email asking for bank statement . 

[Mmccrain]

Congratulations! They’re probably just making sure the loan is needed? Not sure

[TrendzbyM]

I don't see how they can look into our accounts and determine that; I just thought it's to verify it's my business bank account 

[TrendzbyM]

They just emailed asking for bank verification and a statement . Has that happened to anyone ?

[Mmccrain]

If you connected your bank account then it makes sense. Or they are analyzing if you need the funds.