What are the qualifications for a Square Loan?

[Craigwhitlow]

[The title of this thread has been edited from the original: square loans what gives with the qualifications?]

We had a square loan and we actually paid it off before the first payment was due. Since then we have processed more credit cards than we ever have and we've almost doubled the amount of cards that we processed. In the last 3 months we've done roughly $8,000 a month that's up from 3 or 4,000 that we had previously. The loan that we had from square helped us to be able to expand a little and to process more cards and do more business. I was for sure that we would be offered another loan. That has not been the case even though that we're doing more than we ever have we still haven't been offered a second loan I wonder why that is

[Lovewell]

Hi Craig! I know that I have seen other posts of people frustrated they have not been offered a second loan. I know that there are a number of factors that effect loan eligibility which you can check out and read about through this link 

https://squareup.com/help/us/en/article/6454-square-capital-eligibility-faqs

I also know that square does their best to review each business as regularly as possible for eligibility, but keep in mind they have many businesses they are trying to review. 

I did notice one eligibility factor is processing $10,000 monthly credit card payments and I’m seeing you said you are currently doing $8,000 is that credit card payments solely? If you are wanting more info on your account specifically I would reach out to square support and see if they can give you more details! 

Congratulations on the growth of your business! Keep pushing and keep checking back on your dashboard to see if you have a loan offer on occasion! It’s so cool that you were able to use the first one to help your business grow! 

Cheers!

[Craigwhitlow]

I thought that in order to qualify for a square loan you have to process atleast $10k a year? Did this change to $10k a month? If so we would have never qualified for our first loan? 

[Nancy__ · Accepted solution]

@Craigwhitlow 

Thanks for pointing this out. 

At this time, processing at least $10,000 in card transactions is only one of the requirements to become eligible for a Square loan.

Once you meet that threshold, there isn’t a specific number of transactions or amount of sales your business needs to process to be eligible as long as your business is active.

If a business meets one or more eligibility factors, it doesn’t guarantee that it will be eligible for a loan offer. To learn more about Square loan eligibility, visit our Support Center.

Hope this clarifies, Feel free to reach out to us directly if you have any additional questions!

[Craigwhitlow]

Thanks Nancy for that explanation. I think we are over $30k in card sales.

The loan process seems a bit confusing since there really is no way to know if and when you will be offered one.

Even with meeting the qualifications, still doesn't mean you will be offered a first or second loan.

I will say I think square loans is a great service. It really helped us when we needed it. I was really hoping to be offered another one so we could expand a little more.

Since it doesn't look like that is a option we will look at other lenders that possibly can help us out.

I was hoping to not do that, since it is really convenient to have the payment taken directly out of sales. 

Anyways have a great day and thanks again, I appreciate you. 

Craig

[Beardgal2006]

Did you ever get a new offer?

[Craigwhitlow]

@Beardgal2006 Thanks for your response. I meet all of the qualifications. I have had 2 loans already through square. I know that it says that no one is guaranteed a loan offer. Which I hope we get another one just on the simple fact that it is really hassle free and it really helps us to continue improve our business. Hopefully in the near future we will get another offer fingers crossed.

[jules72]

Hi @Craigwhitlow,

Thanks for taking the time out to post!

While recent processing volume is one of the factors, there are other factors of your business that are also reviewed to determine eligibility. Please be aware that aspects of your processing history, such as failed debits, chargeback history, and changes to your processing behavior may impact potential eligibility for loan offers.

There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole. We balance different factors of your business that may positively and negatively affect your business’s eligibility for an offer. To learn more about Square Loan eligibility, visit our Support Center.

We understand that not being immediately eligible can be frustrating, but we are unable to override the automatic review process with a manual review.

If you become eligible again, we’ll notify you directly through email and your Square Dashboard.

We hope this information helps. Feel free to reach out to us directly if you have any additional questions!