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!

[Marinetx]

I’m unsure if I need to continue processing through square…. My business has always been in the green metrics, we’ve had 2 loans 100% paid off within 2-3 months. We were awaiting another loan offer at some point but still to this day haven’t received anything. Sales are at a record level, no disputes, complaints, all green metrics, no loan denials (evidently no application has been ran). I’m lost in this process, if it’s the economy or risk it’s ok just SAY SOMETHING!!!

[TheRealChipA]

@Marinetx I’m sorry that you are in a position that the absence of a Square Loan is the deciding factor of whether or not you will continue processing card payments with Square.  I know it’s not easy to expect something and not have it materialize.  But, since you mentioned the economy, I’ll say a few things here.

Square isn’t going to say this, and neither will any card processor who offers MCA loans.  But, of course it is the economy — specifically the lending market worldwide, the persistent high interest rates for borrowing, and the worry of the market that a recessions is still possible.  Of course, this week the Fed gave strong indications that interest rates will be going down soon, which is good.  And, all indications are that the much feared recession is not going to materialize, thankfully.  But, even with those good signs we have a ways to go before nerves are calmed.

Square, like any other publicly traded business, has to balance a lot when making loans.  First, they have shareholders who will be very upset if Square’s balance sheet isn’t healthy — ie - has too many loans that are considered risky.  Also, being too heavy in outstanding loans isn’t considered healthy for a publicly traded company.

I’ll also mention that the loan status page is not and never has been a GUARANTEE of a loan offer.  It is there to help us quickly see problems with our accounts so that we can hopefully correct them. But I’ve read more than a few posts here from sellers who have been “green” for months and still not been offered a loan.  There can be many factors for this — flat sales, more cash sales than usual (which hurt loan offers since loan repayments are from card sales).  The point is that this page is what it is — a guide and a checklist.  Being green does not mean that loans will come, and that should not be read into anything on that page.  When the loan algorithm is ready to offer a loan, it will, and not one — not even Square employees — can do anything to influence or override that.  That is a fact of life.

Lastly, I would caution against jumping ship to a new processor solely on the basis of possible loan offers.  First, they all promises that you’ll get loans, but all of them work exactly the same way as Square does.  When their algorithms are ready to offer loans, they do, and it’s a completely automated process.  Also, switching processors effectively resets the clock and new sellers rarely get loan offers before 6 months or even a year.  Further, they all look at processing history with them, only.  So loan offers from a new processor will be much lower than what you could possibly get eventually with Square.  The grass is never greener on the other side, I’m afraid.  It’s just more grass.

I know you are frustrated.  But don’t do anything now that you’ll regret later.  I know business owners who have and understand now how foolish they were.  If you really need a loan for your business to survive, then you should reach out to your local bank.  SBA loans are pretty good right now and even though they are taking a while the rates aren’t bad.  The Fed will start lowering rates soon which will help all lenders worldwide.  It’s just going to take time.  You mentioned that you’ve had two loans.  That makes you a pretty new loan customer, still.  Some have had dozens and even they are waiting longer now, and waiting longer for less money than usual.  

Lastly, try to remember that Square is not a lender.  They are a card processing company that also lends money for very short-term cash needs.  Their lending policies are theirs to make and follow and they do not owe us loan offers, period.  Having said that, I hope this helps a little, even if just to convince you that you are not alone.  And, in closing, I wish you well and hope things work out for you.

[Kbso11]

Yes, i too am in great standing in the green in all aread and would love to know if i could be doing something more to become eligible again. I’m at about 80% complete currently and always ahead of my minimum due by months everytime 

[Jk2020]

I’m at 81% and nothing as well. I’ve always received one between 50-60%. I been with them since 2020 and sales are good. I always pay off fast. Everything in green. 

[Jerrysbar]

Did you ever get an offer? We're at 82% paid off, all green, and nothing.

[Twpchair]

Honestly, what I have done in the past in a retail furniture store and I could run a flash 3-day sale and kick up not just sales but swiping that card machine all day! I would do Monday -Wed and the weekend is crazy busy all already and boom late Saturday night I had an offer. My % was always in that range of upper 70s to upper 80s but I could add a 15% to 18% increase in a week and imo it triggered the system. That's imo but it has been done multiple times over 12 years. Could be very well at then in the 90s just my lucky pick? All we can do is share our own experiences with every one being different. Good luck!

[Oxbow]

1 dispute in 8 years 3 years ago, all green 85% paid at 7 months no offer frustrated for sure

[ReptileLyfe]

Did you get a new offer yet? Just curious, how much was your last loan amount? I'm at 76% today and no offer yet. I've had 4 or 5 loans total and have gotten an offer between 67-76% and once at 88% repaid but they never offer very much. My highest loan was 23k and we do over 300k/year in sales 😕

[Twpchair]

Your offers are most likely due to the number of loans you have. Nothing to do with you and great processing btw. For the first few loans, the algorithm is still trying to determine how you process, new vs return customers and, the overall health of your business, etc. Mine didn't start going up until after the 6-7th loan and over a year or so with Square. If you are paying them back in say 1/2 the time then Square is offering you too low of a loan and vice versa if they offered 60k and barely made it or dragged it full-time then it was too high. The system has to find its happy medium. 

[Pmbuf]

Do you know when they typically approve you for another loan? I’m at 70% now. Just trying to plan!

[Twpchair]

Right now upper 70s-80s most not all are stating. For about a year it was the upper 90s to paid off completely! It has been coming down for the % for a lot of people posting the last 2 months. Good luck and keep plugging away!

[Paulynne]

Nothing to report here either. 

[PFS36]

Same. I guess we'll wait until next year. 

[Twpchair]

I saw one and another one but am having issues. Hopefully, they get that worked out quickly, but definitely a slow week. Hopefully,  the holiday weekend and increased sales will kick off a big week of loans! Are you paid off yet, or are you getting real close? I know you were plugging away at your percentage. This week has been really busy, but almost all cash or checks. We had a huge storm go through, and last I checked, right after the storm, like 255k without power. We were lucky 4/5 hrs. The rest are looking at Sunday and Monday!!! It's not good on a holiday weekend.  We have power here and the store.  1 mile down the road, the rest of town is just dark. The restaurants and party stores have lost so much money in food it's crazy. One lady came in yesterday small diner and roughly said easily 55k plus to throw away and lose all the weekend business. She has insurance, of course, but doesn't replace the business she will lose. Like our restaurants need another blow. She uses Square as well. Good luck and something gotta shake here soon!

[brown17]

Misding my loan dasboard all of a sudden. Anyone know why?   

[Twpchair]

Not sure if it's an update but you're not the first. The next day all back and green.  Hopefully,  that's it. If not with being close to the holiday I would try to call if not I'm not sure of hours until Tuesday. 

[brown17]

 If you can share with community I do not know how to post my own post, just able to reply.   My Dashboard dissapeared about 45 min ago.    I Then received a new loan offer. 59% paid off on previous loan.   My sales have doubled over the past month and I take a mix of cash, checks and credit.    Please no one come for me! I have never received a new loan offer this early.    lowest percent paid was 62% and that was 2 years ago.    The loan was more than my last.    I have encountered a 6 month no loan offer period before in the past (many years ago).   I truely stand by my statement that I always post.   DO NOT go by others expierences.   Every business is unique in their own way.   I also had "needs work" on my processing dollar amount.   I am shocked and relieved at the same time.  This could not have come at a better time.   First time in 13 years of business I am struggling and it is due to the state of our economy.    I pray everyone get's an offer.     

[photoguy2019]

Congrats!! This is exciting! I am at 60% and i usually get them every 6 months.. and my last 4 have been 70%,62%,60%, and 65%. I have a busy weekend coming up so i am expecting for those sales to push out that offer if it doesn’t come in today or Tomorrow 🙂

[Twpchair]

Let's get this going! Ain't no stopping now! It's been slow for too long! We need this page to light up!

[Tyconcrete]

I hope so had a good wensday Thursday and Friday iam hopefully that we  will be busy tonight and tomorrow 🙏 😊. But I parking every one gets one this weekend. Enjoy your weekend every one. 

[Twpchair]

Same to you and everyone! Have a great weekend and kick some butt in sales!