Smaller Square loan offers

[bfsframes]

So I have been a loyal Square Retail processor for almost 10 years now.

Square has extended many loans to my business, and I have always paid them off either before or by the due date.

I have had two PPP loans through Square, both of which were recently forgiven, so they will no longer be a payment concern.

Last year during Covid, Square extended a miniscule offer of loan (less than $1k). Although it was 75% less funding than I had been receiving before Covid (prior loan was $4,8k), I accepted the offer and it was 68% paid when Square proffered a new offer of almost $2k. Still very modest compared to pre Covid amounts, but again I thought to quickly pay it off and then accept a new, higher offer in order to purchase some updated equipment.

Well, at 82% paid on the loan, with a year left to pay the balance, Square extended an offer that was lower than my current loan.

I have never had this issue before, and I feel that the offer should be re-evaluated by the Square Capital team as it does not make any sense why a new offer would be lower than my current loan.

I have tried to communicate with Square through messaging, and they told me customer service would reach out, and I have heard nothing.

This is a poor reward for loyal customer service, and I am about to look for alternatives for processing as I feel there may be some reason that Square Capital is unable or unwilling to extend loans against future processing as they did pre-covid.

Am I the only Square customer experiencing this issue with new Square Capital offers?

[ryanwanner]

To answer your last question, @bfsframes , no you're not the only one.

During and after COVID, I know that Sq Capital changed a lot of their qualifications for their loans, which is showing up for us merchants as lower offers usually. This isn't anything we can change on our side unfortunately. The system will continually reassess your business and update/downgrade offers frequently: my current offer is less than half of my last offer even though my business is only about 10% off of pre-pandemic levels now.

My bet is they got bit by a lot of defaults the last two years and are being a lot more cautious. Can't blame them.

Best advice I have is to make sure you have no chargebacks and stay consistent with average weekly sales while continuing to grow. The system should catch up with you.