Square Decline

[nickbob]

We’ve been with square going on our 10th year.  Having our best year yet for card processing.  Always paid up early, never any issues, done tons of these loans that square offers.  This go around I was denied for other loans my business has.  Which seemed weird because I thought these were based on card sales.  I have been having a really hard time getting a straight answer from anyone when I call or email.  I only get told to look at the FAQ.  I feel as long standing customer, they’ve made plenty of money off me I deserve a better experience.  My question is if they changed their requirements or standards that anyone knows of?  

[Minion]

Hey @nickbob 

I've never heard of that denial before but it is a possibility that Square could be scoping ore of your business/personal that previous.  Most banks/Fintech companies are always updating their algorithm based on current market, so it wouldn't surprise me.  While Square does base a portion of decision on processing, other factors do come into play including history, customer base, amount etc.  

Do you happen to have any other accounts lined to Square that share data between the two for other loans?

Maybe @Twpchair  has possibly come by this reason before?

[Twpchair]

Hello, unfortunately, I have, and it can be as simple as when it was offered, 1. great metrics, dipped, and caused a second look. Those work themselves out over a little bit of time for the algorithm to pick you back up. The multiple businesses/locations are there: active loans, standings, and metrics—it's endless. The reference to FAQs makes me think it is more of the general rule for Square loans vs. an account-specific issue. As far as any “rule changes,” no; others with multiple locations—one on Sunday posted one location at 76% received an offer, and the other business was 1 day after completely paid off and received an offer. I have had offers, and one of the metrics dropped but still received the offer. You are 100% correct that they take into account our history—prior loans, all of that matters along with the metrics. Hopefully, by the time they respond, it will work itself out. Rabbit holes rule for me 101.

[Twpchair]

If I’m understanding correctly, you have multiple businesses or locations. If that’s the case, do they each have an active loan, and are they currently in good standing? I’ve seen various situations, but since every case is unique, it’s difficult to pinpoint a specific reason, especially when algorithms are involved. 

To keep it simple:

1. There are no guarantees about if or when you will receive an offer. I have seen offers quickly rescinded after being extended.

   - This could be due to the reasons mentioned above.

   - It could also be as simple as the timing of the offer. Long holiday weekends can skew your metrics. Some businesses thrive during holidays, while others may even close, leading to a slight drop in metrics. In those cases, many were able to recover their metrics once normal work resumed, which then allowed new offers to surface.

If the response directed you to refer to the FAQs, I would assume this is not an account-specific issue but rather a loan requirement that is clearly stated. If you can provide any additional details, it might help narrow down the situation further. 

[marielmt · Accepted solution]

Hi @nickbob!

Thanks for posting on the Seller Community.

All loans are still subject to credit review. This means that a pre-approval doesn’t guarantee that you will be able to obtain a Square loan. However, Square does a thorough review of your Square account (like your processing volume and payment frequency, among other factors) before pre-approving you for your loan. During the review process, we review several sources of information, including a public records UCC lien search.

We understand that this loan is important to you and your business, so being declined can be frustrating. I took a look at your account and can confirm that a member of our team has already followed up with you about the decline. Unfortunately, we do not have further information we can provide. Please refer to the email you received on 5/13/2025 and reply to the email if you have further questions regarding the decline.

If you have any other questions, please feel free to contact us directly!