So, I'm not the only one discouraged with Square Loans in 2026

[Mansellmc]

So, I'm not the only one discouraged with Square Loans in 2026. I am expanding my business and am trying to get it all done before folks start seriously vacationing. I'm a groomer and about to open boarding. I have used all the funding I personally put aside for the project and am now in need of additional funding to finish the work. I will be missing out on good cash flow if I can't finish this soon. I have been waiting for a new offer. Last time I was at 66%, currently sitting at 67%, yes, I know that isn't a big difference yet. But reading some of the other concerned thread posts is a bit nerving.  I am so tired of feeling like I am stuck. I don't feel like Square is transparent enough. They say they can't manually override the algorithm. Um, every computer has a manual override. I love Square's payroll and savings. I use the savings mostly for lease payments. I think about switching processors because of this reason. But I have been with Square since 2011 and hate to start over with someone new and have to "build" that relationship all over again. You would think with that length of time and being all green all the time that they would take care of those existing customers that have stellar marks. It's depressing. 

[Mansellmc]

I am going to look into alternative business loan options. I've been in business since 2011 and have decided to expand my business. I need a more reliable loan option, I think. I really don't like not having all my eggs in one basket though. Square needs to be more transparent than the same script they throw to you whenever you inquire. Makes me sad and adds stress to the mix. I need something that will be there when I need it, not just when they decide to make me an offer.  I offer my business to them all the time, they should do the same for me. 

[PamS2]

Did you receive any offers yet?

Have you found any good alternativs? We are on our 8th loan and now are at 80% and no offers yet. I remember when you could set your watch to getting a loan offer at 75%..so frustrating. 

[Mansellmc]

No not yet. I'm still debating with myself over switching. Just so frustrating!!

[stanleycourtney]

Same... I hate the transparency and the same old recording every time you ask about a square loan.. I have had square for several years its so frustrating not knowing when or if you get an offer. 

[VanKalkerFarms]

I love Square for its job as a POS, invoices, and payroll, but I would definitely not depend on it as your sole source of funding. Establishing yourself with a local bank/Credit union and getting an RLOC is a great way to get funds when you need them and pay little for the ability to do so.  You only pay for the days you have money borrowed, so we may hit it in the spring for a couple semiloads of product, and then pay it back in 3 weeks, and you are only paying interest on 21 days vs some giant lump sum from Square.  Square loans have their place in some situations.

[VanKalkerFarms]

I get you want a loan, just being frank here, you shouldn't be depending on Square's algorithm to give you one, especially when you still owe a third of your previous loan to them.  They start, not offer cause that the number is way higher, 1,500 loans a day, averaging a total of almost 16 million dollars so there are tons and tons of loans being offered.  They seem to have gone more on average to offering loans closer to being paid back or not until paid back, which, in my opinion, is how it should have been from the start.  If you want a more reliable source of funding, you should look to your local bank for a revolving line of credit or RLOC.  It will save you a lot over the year as you will pay way less in interest vs the square loan.  What's great about it is you only pay for it when you have a loan pulled on it.  So if I pull 150 grand on it for 11 days, I only pay interest for 11 days.

[Papaya · Accepted solution]

Hi @Mansellmc 

We appreciate you letting us know about your situation.

It’s important to everyone that lending through Square Banking is done responsibly. We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth.

To help ensure you get an offer that’s just right for your business, Square Banking reviews accounts on an ongoing basis. There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole.

New offers are not automatically extended when a certain percentage of an existing loan is repaid. Keep in mind that we can’t guarantee that another offer will be extended before or after the current plan is complete. Repaying your existing plan does not guarantee that your business will be eligible for another offer. 

If you are considering other options for a business loan, please review our 4 Things to Consider When Evaluating a Loan Offer in our Town Square Blog.

We will continue to monitor your account and notify you if your business becomes eligible for a Square Loan offer.

[Mansellmc]

You said, "but keep in mind that we evaluate accounts as a whole." But that is not true when I am not offered the opportunity to at least send in my bank statements to get the full picture of my revenue. I cannot use Plaid at no fault of my own. It's financial discrimination. I take in nearly $30-40k more than what Square sees in checks and cash. How is that fair that I cannot share that but others can because they can use Plaid?  It's not right. There is more to my business than what Square's AI and algorithm knows. 

[Papaya]

Hi @Mansellmc 

Thank you for your response.

I want to assure you that neither financial discrimination nor any other prohibited bases under the Equal Credit Opportunity Act including, but not limited to: race, color, religion, national origin, sex, sexual orientation, marital status or age are used to determine your business’s eligibility for a loan.

If you’re unable to find your banking institution with the bank selector tool, it currently isn’t supported by Plaid. Unfortunately, not all banks are supported at this time, and you’ll need to link a supported bank. Please note, you will be unable to link your Square Checking or Savings account as we are requesting only external bank accounts be linked to help us learn more about your business. Connecting a bank or multiple banks is optional and will not affect your current eligibility status or loan offer if one is present.

Feel free to reach out to us directly if you have any additional questions!

[TheRealChipA]

If the only reason you are with Square is for loan access, then you should definitely switch.  However, I can say that I know fellow business owners who use other POS services with merchant cash advances like Square's.  Not one of them is happy.  They all get lured in by the promises that "we are better, faster, and have bigger offers than Square."  That might be true for the first few loans after the usual 6-month waiting period.  But it never stays true.  

Square is like any other lender -- they have to balance their balance sheet exposure to possible bad loans with other considerations.  They are not immune to the economy or the lending market, both of which are in shambles right and will be for at least the next three years.  It sounds like we've both been in business for the same number of years (I opened in 2012).  The best decision I made was to get off the MCA roller coaster.  Square Loans (and all MCA loans) are too expensive for regular use.  They are great in a pinch, but that's about it.  Two years ago I approached my bank about a line of credit and was pleasantly surprised my the strength of my business credit report (A++++) and my cash flow history with them qualified me for a mid-5-digit line.  That is the best financial decision any business owner can make.  If, after a decade, I was still relying on Square MCA loans to keep my business afloat, I would probably decide to close it because it would be obvious my business was never going to thrive.

Regardless, it has been very obvious since the pandemic that MCA loans are being tightened and restricted.  Lenders lost a lot of money from defaulted loans and they will not make that mistake again.  The days of new offers regularly at 50, 60 or even 70% are long gone, as they should be.  That is a sure-fire way to help businesses become insolvent.

[VanKalkerFarms]

This is a perfect summary.  It is what I have been saying for years and years on these boards.  A LOC or RLOC is the best thing you can do for your business if you are in need of a cash influx periodically.  It is so cheap compared to a Square loan and you can tap it and repay as you need to.

[PamS2]

Unfortunately we have put everything into our small business and LOCs are not an option when your credit isn't good. We are at 88% paid back on 8th loan and still no offer. Please keep is in prayer our small business is in need of help and not scripted responses from folks that don't seem to care.

[MelaoCafe]

We’re currently at about 85% paid off on our largest advance so far.

We’ve been with Square since 2018 and process around $700k a year, with steady 15–20% growth annually.

What’s confusing to me is this is the longest I’ve ever had to wait for a new offer. Looking back at my last 10 advances, I usually got a new one somewhere between 60%–75% paid off. 

I understand it’s based on sales and account performance, but our sales have actually gone up and everything has been consistent. I also typically hit the minimum pretty quickly—usually within the first month.

So I’m just trying to figure out what changed, because the pattern feels completely different this time around.

I do some marketing on the side, and I have a client using Toast who gets offers consistently around 50–60%, and I did reach out to Toast and they even offered me one just for switching, which I’ve honestly considered, as they would use the current offer and our sales reports.

That said, Square has been great overall and has everything I need, so I’d prefer to stay. I just wish there was a little more consistency or transparency, especially for those of us who rely on these advances to keep things moving. Especially for us who don’t have the luxury of getting a LOC due to bad credit and MCAs

[Papaya]

Hi @MelaoCafe !

Thanks for your post.

We appreciate your loyalty when choosing to partner with Square for your past business loans. We also thank you for providing your feedback. I will share your concerns about eligibility and transparency with the rest of the Square Financial Services team. 

We understand that it is frustrating that we can’t guarantee that you’ll receive a new offer. Square accounts are reviewed on an ongoing basis to ensure that each business gets the right customized offer.

Have a great weekend, please contact us directly if you have any account specific questions. 

[PamS2]

Thank you for sharing your experience. Nice to know we aren't alone. We are now at 91% and all green and still nothing. Us like you hit the minimum payment super quick. and like you we have had other offers and really don't want to leave square as we are comfortable with them. I have seen other folks getting offers in the low 90's so hopefully we both will be receiving offers soon as we really are depending on it. Have a great week. 

[AnniPadanni]

I've had 9 loans over 6 years.  Payoff % had been 65%-70% when a new loan offer would come in. Then in 2024 I began to see it 85%-90%.  The last 2 loans have had to be 100% before I received an offer.  And this last one, paid off in April, was a SHOCKER.  After I paid it off, I was expecting to see an offer (counting on it, actually).  All stats were green.  Our numbers were up 15% YOY.  All of a sudden, I get a notification box in my banking overview screen that was bright yellow.  And it stating that I was being offered a "cash flow boost" for up to $4200 that must be paid back in 120 days.  WHAT?  It was a slider option from $100 - $4200 and the fee and percentages were high.  But the biggest shock was the payback in 120 days.  This is nothing like the loans I've always been offered.  Anyway, I've left it alone.  I'm not interested in such a high rate with a frantic payback pace.  Anyone else see this?

[AnniPadanni]

**Adding that my loans had consistently been $18k-$25k, so this $4200 is crazy low.

[Papaya]

Hi @AnniPadanni !

Thank you for sharing your experience.

I understand your concern about your loan offer size. It might look a bit smaller than offers you’ve received before. That’s because it’s designed as short-term capital meant for immediate business needs like paying bills, buying supplies—whatever you need to support your business. This offer also has a shorter term length, which is tied to the smaller loan size. Please check your Square Dashboard to review your offer details.

Keep in mind, we cannot predict if or when your business may receive a higher offer. If you choose to not move forward with this offer, your account will continue to be evaluated for loan offers and we may send larger offers as your business grows.

Please contact us directly if you have any other questions.

[PamS2]

I know Sky that you have to try and communicate Square procedures to us in Loans, but you can see everyone's frustration. We have been paid in full for over 2 weeks on our $60k dollar loan, was counting on new loan offer since we have never been late, always paid back early on all 8 previous loans. all categories are green, we have stayed loyal to Square for what?? If anyone can recommend another POS system here that offers Capital please post it. Tired of losing sleep, running your own business these days is tough enough without adding this undue stress. Manager and all people from square giving us scripted answers.. so sad. they use to really care about their merchants. 

[BiB]

Someone posted that Toast made them an offer. I also process with Stripe some and was given an offer to fully switch over. I'm located next to a major Air Force Base so it's not unheard of for us to have people come in with cards from out of the country  or for heir families to want to prepay for them and it's been my experience it's easier to process those payments via stripe. My booking platform already has Stripe connected as well. 75% of our processing is online bookings so clients wouldn't really even notice the transfer.

So all that to say, there are offers out there. I'm giving it a little more time but in the interim have already switched some processing to build a stronger relationship with them.

Hopefully you get an offer soon and won't be under stress!