No Loan Offer After Paying Off 96%

[FloresLiquor]

Dear Square financial team,

I have been doing business with Square for over five years, despite the high credit card fee of 3%. One of the main reasons for my loyalty to Square is its willingness to provide loans to help grow businesses.

Currently, my business, Flores Liquor, is 96% paid off on my previous loan, but I have not yet received a new loan offer from Square. I genuinely wish to continue doing business with Square. However, if I do not receive a loan offer, I may have to switch to another payment solution company that appreciates its customers' business.

I kindly request that you check with the Square financial team regarding my loan status. I hope they will consider offering me a loan, as it would greatly assist me in growing my business.

Thank you, and I look forward to your assistance!

Best regards,

[ryanwanner · Accepted solution]

Hello @FloresLiquor !

It's not surprising that you're seeing a delay in loan offers simply because that's the name of the loan game right now. There are so may unknowns economically right now that the vast majority of lenders are tightening down the loan offers. Where Square used to be relatively consistent at offering a new loan at 75-90% of an existing loan paid off, it seems like that's changed a lot. I've seen loan offers at 95%+ or many times once the original loan has been paid off completely.

As long as you're keeping an eye on your loan eligibility screen on the dashboard and consistently growing your business, increasing your average ticket, expanding your clientele, and overall keeping things in the right direction, a loan offer should present itself relatively quickly for you.

I would caution jumping to another merchant provider simply for the loan offers: many times your business will need to prove itself to the new provider, which usually takes upwards of six months. So, jump ship to wait 6 months or continue to build your business's odds of approval with a known good lender? It's entirely up to you but I know what my answer would be. 

[Minion]

I have to second what @ryanwanner stated above. There is no manual review of square loans during the initial qualifying for an offer.  You are more than welcome to call in to customer service yourself though and see if there is anything that they are seeing on their end but chances are they will give you the same information and advice that Ryan stated above. 

IF you are looking to truly grow your business relationship with a financial institution , your local bank would be your best option.  It is never a bad idea to give yourself and your business financial options, especially in this economy.

[marielmt]

Hi @FloresLiquor!

Thanks for taking the time to reach out to us.

We appreciate your loyalty when choosing to partner with Square for your past business loans. Please know that your loan history is reviewed in determining loan eligibility, but there are other factors of your account that are also considered.

Currently, offer eligibility is based on payment processing data, which means eligibility can change as frequently as your business does. Loan processing data includes your processing volume and your processing history, such as failed debits, chargeback history, and changes to your processing behavior, among other factors.

We understand that it is frustrating that we can’t guarantee that you’ll receive a new offer because you’ve had previous loans with us in the past.

Square accounts are reviewed on an ongoing basis to ensure that each business gets the right customized offer. We can’t predict if or when your business may be eligible for an additional Square loan, however, we will continue to monitor your account for eligibility. If your business becomes eligible to apply for a loan, we’ll notify you through your Square Dashboard.

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

[FloresLiquor]

Now I am at 100% loan completebut still no loan offer . It seems Square do not care about customers who were loyal with them for 5 years by giving them business even though Square Credit card fee is 3% which is highest in POS insdutry. 
  Now it is time to switch to another POS . I will wait for another week and if I do not get offers within 1 week then sorry to say but I have to go with new POS who values customers by allowing them to grow in business not restrict them.

[Minion]

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@FloresLiquor wrote:

Now I am at 100% loan completebut still no loan offer . It seems Square do not care about customers who were loyal with them for 5 years by giving them business even though Square Credit card fee is 3% which is highest in POS insdutry. 
  Now it is time to switch to another POS . I will wait for another week and if I do not get offers within 1 week then sorry to say but I have to go with new POS who values customers by allowing them to grow in business not restrict them.

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Congrats on paying off your loan.  I'm assuming your "metrics" are all green and you have had a good increase in sales, customer mix and no charge backs?  But now that your loan is 100% paid back , once it full processes and as long as everything else looks good, I can't see why you wouldn't receive an offer in the next 10 days. 

As for the highest swipe fee, that's debatable.  Square seems to be in line with many other of the industry leaders and actually depending on the type of payment processed they have a lower fee than QB or Stripe. 

[Hasay]

Did you end up getting a loan offer I’m in the same boat now and no offer and I have had like 10 loans with square