Square loan offer after 65%

[thenailplug]

I usually receive an offer between 50-90%.. I’m at 65% right now and I’m anxious to get some more inventory for Halloween as it’s one of my busiest times of year. I was wondering if anyone else kind of took a hit during the outage whenever square was down a couple of weeks ago? I had my busiest day that day and had to reroute the income and then transfer those payments via invoices whenever the system came back up. Unfortunately though, because of the way I had to do it, there were some pretty hefty processing fees via other payment channels so my actual profit took a dip. This caused my repayment funds to be lower than if I had been able to just process all payments through square as normal. I hope this is all making sense.. just wondering if anyone else has a loan and was in the same boat as me wondering how the outage would affect sales considering sales is what pays back the loan? Hoping another offer comes through soon so we have another successful spooky season 🙂

[_Violet]

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[GlitzyCow]

I only ever got one loan offer in the 60% repaid area. If I were you I wouldn’t count on it and I’d be hesitant to keep taking bigger loans when only half of the previous or so was paid back.  I think square is trying to push offers back to a higher percentage paid so they can cash in on the actual loan fees being partially repaid. However the fees may be already built into the load at a percentage any way…. I don’t think Square giving loans in the middle of a partial repayment is very good business, because if people are needing more money at that percentage how will they ever fully repay a bigger and bigger and bigger loan so to speak.

With that said I’ve had 11 or 12 loans with square, I’ve accepted people to pay with card this year who would typically pay us with a check. Square is making a lot of money on us with fees. I’m in the green. I paid off my last loan on 8/2 which was a third less than the one before it. I haven’t gotten an offer since. The loan that was paid on that date was paid within 6 weeks of receiving.

So with all of that in mind I don’t think there is really any rhyme or reason for anything. Maybe they put us all in a bingo ball and draw names as to who gets one. The frustration is real. 

[thenailplug]

I can’t speak for others but I don’t necessarily “need” another loan at 60%, it would just be super cool haha. As far as paying off bigger loans again, I can’t speak for others, but every time I’ve been offered a loan it has more than doubled- sometimes tripled therefore paying off the existing loan. The percentage of sales taken to pay back the loan goes down as well and as my sales increase, this all makes seems like it’s a win/win. I’ve heard some horror stories about people feeling they’ve been treated unfairly with the loans and payback fees but I have not experienced anything like that. The way that I understand capital loans is really for investing rather than helping a business or saving a business during hard times. This is the category I’d consider myself in terms of square loans. It is strange though how we are offered loans almost randomly rather than a point blank milestone.