Thinking of leaving square - lack of loan information

[toffeeman]

I'm sorry, but what is going on with square loans? We are exponentially increasing our revenue, have a solid 100% reputation with square, pay off our loans within 1-2 months of previous loans, and have 0 chargebacks. Everything is 'good.'
We haven't received an offer in over a month. We are considering changing. Square is unreliable when it comes to capital loans. We need a company that we can rely on. Any suggestions?
Thanks.

[bsa77]

Thank you! The frustration is where you are marking all of the green boxes provided by Square as a guide and still aren't eligible  

[Adalynn]

Appreciate your response @bsa77 !

There are many factors that affect loan eligibility, but the factors listed on the eligibility page are key factors we consider to help you understand our process. 

Unfortunately, we can’t go into further specifics about program requirements because the criteria we use is proprietary.

I understand this isn’t the best experience, so I’ve shared your feedback with the rest of the Square Financial Services team.  Please know that we’re constantly working to improve our products and services based on the feedback we receive from customers.

Feel free to reach out if you have further concerns!

[Twpchair]

Hello, I wish I could give you some positive news but it has been slow lately and a higher % paid back lately. A few about 2-3 weeks ago in the 60s-70s but that's the few at least that post on here. I wish the metrics meant something more than for us to use as a tool. But they are more for us to use. Please keep me posted ok. 

[bsa77]

Thank you, Adalynn, for your reply. I recognize that there are currently no predictions regarding Square loan offers. My frustration stems from this! It is indeed very disheartening to have a perfect record and meet all the criteria they outline, showcasing an excellent history and growth, only to be left in a waiting game. I believe that everyone participating in these discussions hopes that Square will acknowledge the frustration of their loyal customers who are paying fees, and provide us with a more dependable guide to help us plan more effectively for our businesses. Having 91% paid off, experiencing growth compared to the previous year, and still receiving no offer is quite disappointing. If my offer does not arrive soon, I will have to consider other options. I have taken the time to explore other processors, and their customers appear to be very satisfied with their capital processes. I often find myself drawn back in by a loan offer that I require, but being so close to paying off my current loan, it may be wise to reconsider the percentage I allocate to my capital payments as I approach the end of my loan.

[Minion]

Hey @bsa77 

I agree with you that square needs a big overhaul on their loan process.  It gives out way to much false hope to sellers who are counting on it.  If switching over to another processor is something that you need to do for your business that is perfectly acceptable as its your livelihood.  What I try to tell people in a position like yours, is if you end up staying with Square and receive another loan  don't accept or take another loan until that current one is 100% paid off.  One of the many issues is sure people receive an offer at 75%, but they are taking 25% of the new loan to pay off the remaining just continuously keeping you locked in to needing to lean on them.  Just my .02 and food for thought.  Best of luck to you and your business in whichever decision you make. 

[bsa77]

Thank you so much!! Yes that's how I get reeled back in. I will likely move forward with another processor at this point. Thank you for taking the time to respond to me!!!

[Minion]

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@bsa77 wrote:

Thank you so much!! Yes that's how I get reeled back in. I will likely move forward with another processor at this point. Thank you for taking the time to respond to me!!!

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No problem.  This isn't just Square, this is all companies (card processors or not) offering these loans (merchant cash advances).  They will promise you the world to get your foot in the door.   The best way if you are looking for that one on one personal value felt relationship is going to be with a bank hands down.   The flip side of that is there will be more paperwork, credit check and so on.  If you do stay with Square, I would try not accepting the next offer, bank the money that you would have spent on the loan fee and see how that goes and where you and your business are.

[bsa77]

Just one more question. Has anyone received a Credit Card offer? I see that popped up a while back on the side but says that I am on the list. Has anyone actually received one and if so whats that like?

[bsa77]

Thank you, Adalynn, for your reply. I recognize that there are currently no predictions regarding Square loan offers. My frustration stems from this! It is indeed very disheartening to have a perfect record and meet all the criteria they outline, showcasing an excellent history and growth, only to be left in a waiting game. I believe that everyone participating in these discussions hopes that Square will acknowledge the frustration of their loyal customers who are paying fees, and provide us with a more dependable guide to help us plan more effectively for our businesses. Having 91% paid off, experiencing growth compared to the previous year, and still receiving no offer is quite disappointing. If my offer does not arrive soon, I will have to consider other options. I have taken the time to explore other processors, and their customers appear to be very satisfied with their capital processes. I often find myself drawn back in by a loan offer that I require, but being so close to paying off my current loan, it may be wise to reconsider the percentage I allocate to my capital payments as I approach the end of my loan and leave square

[VanKalkerFarms]

Switching to another algorithm-derived loan offer system isn't the best for the long term.  You really just need to take some time and go to a few banks and or credit unions. A revolving line of credit is going to be way cheaper than any POS or payday type loan.   I can borrow a quarter million at 4% so if I did that for say 28 days, that would only cost me $766.
A square loan may be good for that first bump, but the effective rate is not great, and it is taking all your profit to repay the loan.
IF you look at PayPal or Clover, etc, you'll see many of the same complaints of I want a loan and they are not offering me one because they are all algorithm loans. Square starts a loan more than every 60 seconds, that's almost 1,500 a day.  That would take hundreds and hundreds of people to do that in a conventional loan application process.

[bsa77]

I share your frustration. After years of maintaining an excellent reputation, achieving high sales volume, and experiencing consistent growth, it is disheartening to see no changes. I recognize that there is no formal application process, and evaluations are made without guarantees; however, I believe it is time to seek a more dependable company. I have placed my trust in Square, and while I am paying fees through their platform, I feel that a more predictable and goal-oriented system should not be too much to ask for. If I do not receive a loan offer soon, I will settle the loan and part ways, thus removing myself from the cycle of repaying a loan and waiting for another opportunity. Has anyone had experience with TOAST? CLOVER?