Hey @Tyconcrete. I can give you some insights but of course no concrete answers.
First, loans ARE going out. I’ve gotten a half dozen offers in the past few months, but I’m not in the market for a loan through Square right now.
Second, almost no one with a current loan is getting new offers at 70-80% currently. This has been the case for well over a year and I don’t see it changing anytime soon. Why? Because if you read the news, or follow the financial journals, you’ll see that all lenders are being very conservative about how much they have on their balance sheets. Rates with the Fed are still high and will only come down slowly. There is talk every day of a looming recession, which I think is crazy since the signs for recession just aren’t coming together. But markets don’t like that kind of talk. The point is Square is not the only lender who is holding back. I’ve seen sellers here waiting until the 90% range to get a new offer, and more than a few who completely paid off their existing loans and then waited a while before a new offer showed. This, as they say, is just the way it is. The lending market is being highly conservative and cautious. Hopefully, that will change soon.
Lastly, it seems like the point of your post was to say bye because you are just sure that there are better card processors out there will give you all the money you want when you want it. If that’s the case, I wish you well. It’s really never a good idea to switch card processors just because of the possibility of loan availability. I know a few folks who did that and regret it. One is still waiting — after a year —- because they are still building up card processing history with their new processor. One other I know is very disappointed that they are only getting offers that are half what they were with Square. Another hates her repayment terms. Point is, the grass is almost never greener on the other side. It’s still just grass.
One more thing. This year I realized that my cash flow and sales were more than sufficient to qualify for a traditional Line of Credit with my local bank. I applied — solely on the strength of my business credit and profile — and was approved. Many of us find here that there comes a point where the Square repayment terms (which are, after all, merchant cash advances and not traditional loan terms) just don’t work for us or make financial sense. It’s not the fault of the Square Loans — they serve their purpose quite well and help lots of folks getting started. Anyway, I found that it was a good idea — and finally time — for me to move on from Square loans and find something with more traditional repayment terms, etc. From seeing the numbers you freely shared in your screen shot, I suspect you might be one of us. But, of course, that is unsolicited advice, eh?
Regardless, I wish you well. And, if this LONG reply is too much — and all you meant to do here was gripe and complain and didn’t want feedback — then please accept my apologies.
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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