Why was my loan application denied?

[BismarckDetail]

Why was my loan offer denied? I paid my credit card! 

What does this even mean on my loan page! How can I improve account activity if I don’t know what you’re expecting!

Account activity

Needs work

Factors like payment disputes, prior loan applications, and your history with Square

[TheRealChipA]

Hi there @BismarckDetail. So, it looks like you have one or more of the following happening on your account:

1. Recent payment disputes that were decided by your customers' banks in their favor.
2. A recent loan application that is still pending, or
3. Your card processing volume recently has either gone down from your historical average OR you have basically flat card processing.

Have you looked at your loan offer status page?  You can find the link in your web dashboard > Banking > Loans.  Click on the status link and you'll see a run down of your Square account health, which is what the loan algorithm uses to determine your eligibility for the loan offer.

Also, I'm not sure what paying your credit card has to do with a Square Loan.  Can you elaborate on why you made that statement, and why you expect it should have any bearing on loan approval?

[BismarckDetail]

Thanks no disputes, no prior application, sales are barely down. I’ve had like 5 loans up to this with square. That’s the question  what does the cc have to do with anything.

Here is their response:

What’s affecting your eligibility

• Your business is not current on repayment with either your existing Square loan or a Square Credit Card. We are unable to approve additional financing to businesses that are not current on repayment.

[BismarckDetail]

I’m current on my loan they send an invite to a new loan?

[TheRealChipA]

@BismarckDetail Thank you for that screen shot.  So, either you didn't make the most recent minimum loan payment, OR you latest payment on your Square Credit Card has not yet fully posted to the account. 

And, now that I know you have a Square Credit Card, it makes sense why late payments would affect your Square Loan offers.  Those two products are intertwined and history with one affects history with the other.  Both the loan and card agreements (and fine print) state this clearly.

I'll tag the Square Moderators here in the Community.  Maybe they can consult with support and help you understand what is going on.

@Kassi_@RSosebee1@_Violet@MayaP@Summer2024@Summer2024@Ellie_@Katie_SQ@Laurie_@Sammie_C

[TheRealChipA]

@BismarckDetail Also, even though it might not apply to you right now, having card volume that is down at all over a certain look-back period is a red flag.  Especially in an economy where inflation is stubborn and our buying power is reduced, which seems like it will be for the near future.  Most merchant advance loans like Square's do not want to see flat or declining sales.

[BismarckDetail]

Thank you. Never late on loan and payments on cc have been made.

[marielmt]

Hi @BismarckDetail!

Thanks for posting on the Seller Community.

I took a look at your account and saw that you previously reached out. This has been escalated to a team member who can help you further. You should get an email followup in 1-3 biz days.

We appreciate your interest in Square Loans. Please note that being declined for a Square loan in the past may impact your eligibility. Keep in mind, loan offers are also based on a variety of other factors including, but not limited to, your current payment processing volume, your customer mix, and your Square account history.

We do not have a specific timeframe for when another loan offer may be available. If your status changes, you’ll get an invitation email and be notified directly on your Square Dashboard.

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