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!

[Twpchair]

Unfortunately, those that have received one have been trending a lower offer or the same as the previous one. I've seen just a couple higher but 1-3k higher. Those were really new to the loans as well. Second or third type loans. Good luck to everyone waiting 

[Twpchair]

Ughhhhh, fingers crossed my last offer came at 91%!!! I wish you all the best!

[Jjpainting]

Nope. No luck for me at 91%. My thing was updated around 3pm est. I think all my past loans came right around the time it updated. 

[Twpchair]

No unfortunately,  it's been really slow this week. Hopefully it will pick up soon. 

[ls725]

Is there a reason other financial institutions don't work with Square? I've had issues in the past applying for loans with my Square account.

[Minion]

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@ls725 wrote:

Is there a reason other financial institutions don't work with Square? I've had issues in the past applying for loans with my Square account.

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I'm not sure 100%, but I would assume since Square isn't classified as a banking institute, or something along those lines would be my guess. 

[ls725]

I love using Square Banking, upsetting to hear this.

[Twpchair]

@Minion is a great one for advice and help! Do you, by chance, have a nice smaller credit union where you are? Credit Union vs. big banks tend to be easier to get an account and financial needs. Then you can keep your square accounts and have a backup if you don't already.

[Minion]

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@Twpchair wrote:

@Minion is a great one for advice and help! Do you, by chance, have a nice smaller credit union where you are? Credit Union vs. big banks tend to be easier to get an account and financial needs. Then you can keep your square accounts and have a backup if you don't already.

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^^^ Appreciate yah @Twpchair .  But yeah even banks like Chase offer an okay sub for opening up new business accounts through out the year.  I think the current one right now with Chase is $300 bonus for new business accounts with qualifying activity (easy peasy money). 

Nothing against Square, but opening up the door to local or other banks is never really a bad thing even it you are just keeping the minimum amount to avoid monthly fees to get started. 

[Twpchair]

I agree 💯! I forgot about Chase. I have their credit card, and they sent me info about their checking and savings account, and you are correct. If I opened a checking account, it is a 300.00 bonus for starting one up. Being retail and an actual physical store, I have to have a bank for change a couple of times a week! We blow through 10.00s and 5.00 like crazy

[Paulynne]

They don’t recognize Square as a financial institution. I have had that problem A LOT! I finally asked why to a loan company. I was told square is  a fintech company and although Sutton bank insures our funds with square checking, it’s considered a third party. I process and bank with square, so it makes getting loans from other institutions very hard. 

[Healthyketo]

Updated around 1pm today all green and still no offer. Go figure!! Another week waiting i guess

[Twpchair]

It's been really rough and ugly 😪 unfortunately, I don't think it's going to change for a bit. The real chip is 💯 correct. It's not just square, but everyone is watching and waiting to see what happens. Are they going to raise rates, is the market going to stay steady, and the list goes on. You will still see people posting "finally got an offer" here and there, but unfortunately, the days of almost like clockwork 70-75% I believe are gone for a bit. We got this, though! We are still open when so many are closing. We have gone through the good, and the bad we gotta just keep pushing forward! Good luck to you and everyone waiting! 

[PFS36]

As much as I'd love for us to get an offer,  I'm pulling for you 100x more. At this point,  it's basically a waiting game.  Hopefully the second half of August will be generous to everyone waiting.  We just need this extra boost to get a few things.  Praying for everyone waiting!

[Koleen1234]

I agree the wait  game is nuts. Definitely needing another loan and square gives zero answers 

[Healthyketo]

🙏🙏Thank You! I’m praying for someone to get an offer today. Lol haven’t been updated yet so there’s still hope! lol 

[Tyconcrete]

Praying as well hopefully 

[Tyconcrete]

Question so do you update first then after a few hours get a offer if they do or is it update with a offer  🤔 anyone know I have never really paid attention to this in the past on 7 th loan .sitting at 84 percent. At least only good thing is have $12,342.68 

.left on a 69k loan so .Just wanted to know if anyone knew 

[Tyconcrete]

Has anyone in August 2024 gotten any offers .or any insight as to why it's not getting a offer at 83 percent 

Been with Square for going on 5 years now and a few more months had several loans in the past one was 16k one was 24 one was 34 one was 49 one was 46 last one was for 69 always like clockwork would always get an offer by 80%. Always paid on time ahead of time and we surpassed  minimum payment every time .and it's like now at 83% and no offers what's going on I know square has made a ton of money off of me from credit card processing and all in the total of five years probably have processed well over 2 million dollars and square seems to not give a crap about its loyal customers when they need a loan the most very disappointing as soon as this one is paid off I am really looking into getting a new credit card processor with the fees that they charge you and everything else they're making us jump through hoops it's crazy

 

[TheRealChipA]

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.

[Twpchair]

Unfortunately, you are 💯 correct! I try to tell people to please go jump on their sites or reddit, and it's the same thing everywhere. And please 🙏 don't listen to a Rep. trying to sell you their products and equipment and guarantee in a couple of weeks after everything is all set up we can double your offer! 😆 🤣 😂 it's not funny, honestly, because you are 100% correct it's right there in black and white under loans. You start out just like square in 6mths-12 months with your 1k offer. Hopefully, it breaks soon, everything calms down, and lenders will get back to normal. Until then, just tuck that percentage away and let it build up.