Long Wait Time for Next Loan Approval

[Jay79]

The title of this thread has been edited by a Square Moderator from the original: Square loans

Is AI being used to determine square losns? Because ive been with square almost 10 years now and ive never had to wait this long to be offered a new loan. Alot of these companies are changing the way they do things and it might help the company but it definitly does not help the custumers that have been using this company over others. I also payed $30 a month for appointments to be able to charge for no shows bur once again there are problems where i cant charge and i lose a lot of money so i just stopped using that service. I would definitly be careful with taking custumers for granted because there ate endless new companies that provide better services and benefits.

[TheRealChipA]

Hey there @Jay79 

So, first, AI is not currently being used for Square Loans.  If there is any AI work going on at Square right now (for example the AI Enhanced Search beta), you can be certain that Square is moving slowly and cautiously with AI enhancements and being sure that they work properly.  While I can’t divulge details of ongoing AI research, I can assure you that the engineering teams are moving very cautiously here and getting lots of input from sellers who are helping them explore the possibilities.

Second, you are not alone in the loan boat.  For the past year (at least — probably for the past few years), the lending market has been very tight and conservative.  This is because of a combination of factors that are well discussed in news articles every day — stubbornly high interest rates, lender restrictions on their loan exposures, inflation, the possibility of a recession, etc.  While Square is not primarily a lender, they ARE a card processing company that offers merchant advance loans.  They are impacted by the lending market and by their shareholders who want them to be cautious in the current lending landscape.  That’s just how it is.  I’d assure you that it will get better.  However, with the new trade war, and with mass deportations beginning to ramp up and affect some of the US economic sectors, I can pretty much assure that it is going to get worse.  Recent articles that I’ve read say that the Fed is not going ton consider lower interest rates any time soon and probably not this year.  Inflation is going to get worse this year due to tariffs and jobs that can’t be filled because there aren’t enough people to fill them.

I mention all of this because this is not JUST a Square problem.  It is a problem for all of us in business and for people who might lend to us.  You might hear that the grass is greener with other card processors who offer “endless large loans at super low rates,” but I can assure you that most of that is what we call “fake news.”  Everyone is hunkering down for the storm, and in the past week that storm has just gotten worse.  I have friends who use Clover and other Square competitors and they are experiencing the same thing, no matter what their marketing materials might say.

Back to Square.  For the past 1-2 years, new Square loans have been coming later than many of us have been accustomed to.  Sometimes new offers don’t even come until AFTER existing loans have been paid off.  That’s just a fact of life, and it won’t change until economic signals justify it.  Also, even when new offers are made, they seem to be trending lower than expected, again because the lending market’s reticence to expose themselves to large loan defaults, etc.  Square is no different.

All any of us can recommend is that if you need a loan now, you would be advised to check with your local bank, etc.  I did that last year an secured a line of credit that has great terms and is perfect for my off-season needs (I’m an ice cream shop, so…..).  It’s always a good idea to have various options ready, from different banks/lenders, so that we don’t have to rely on just one to be everything that we need.

Sorry that this post isn’t as uplifting or encouraging as you wanted.  But it at least has the virtue of being realistic and consistent with what is going on in the world of finance right now.  I wish you well.

[Twpchair]

Triple Kudos! Unfortunately, all of the above is about what it is and has been unfortunately. The days of 65-75% (for the most part) are gone and have been like you said. I really started to notice it going on year 2 in April/May. Later offers, same or close to if not less than previous offer. I get the 10 plus calls a day from POS REPRESENTATIVES that promise you the moon and that’s their job but unfortunately read their reviews and that is not what was delivered. You nailed this perfectly and it isn’t always what we want to hear and hate change or at least I do but unless you haven’t been paying attention or not on here very much it’s the new norm. It’s tight, it’s been tight and it’s waiting game. Lenders just as much as we do want this turnaround faster than not. It’s a win win for lenders and those borrowing. Let’s hope this will be a successful 2025!!

[_Violet · Accepted solution]

Hi @Jay79 👋 Thank you for your honest feedback and for being a loyal Square customer for nearly a decade. We genuinely appreciate your long-term use of our services and understand your concerns regarding your Loan eligibility and the issues with Square Appointments. I'd be happy to provide you with some more information on Loan Eligibility that you may find insightful.

If you haven't already, I suggest taking a look at the key factors that may be affecting your eligibility in your Square Dashboard. This page helps Sellers gain insight into the status of their loan eligibility by taking your business’s real time data and comparing it to key factors that determine eligibility. Square uses a combination of factors to assess eligibility for loans, which may include advanced algorithms to ensure fairness and accuracy. If any of your eligibility factors need attention, you can look at the tips below to strengthen your chances of becoming eligible. Please note: Square can’t promise a loan offer, even where all of the factors on the eligibility page are good.

As for Square Appointments, you mentioned you had, "problems where I can't charge and I lose a lot of money" so you eventually canceled your Appointments Plus subscription and thus, forfeited the No-Show Protection feature. If you ever experience an issue with our services, please feel free to contact our Support Team directly or reach out again to us here in the Square Community. We would be happy to help! If you'd ever like to subscribe again to Plus, you can do so at anytime here.

At Square, we are continually striving to improve our services based on user feedback. Your thoughts are invaluable to us, and we do not take your loyalty for granted. We hope to regain your trust and will continue to support you. Thank you for bringing these matters to our attention. 

I hope this information is helpful but please do let me know if you have any additional questions.

[Twpchair]

Hello, I have been following your posts and waiting for the right time and unfortunately there isn’t any as you are still here so no offer yet. What % are you at? I know my last 4 were 81%, 84% 91 and get this 69%. I’m a regular square user like you but 12 years. Do I miss the 70–75% offers like clockwork when or if I needed them absolutely 💯! Now, we have metrics to improve and help what? I’m over 💯-to250% at 80% paid off and nothing. Yes, I do follow  the trends closely and this has been going on for a year and a half now close to 2 years. Besides a rare 70’s every blue moon it’s been upping and upping every few months. That’s the plain truth. We are in a complete 180 in our government and until that market breaks and rates drop big time. This is what we are going to deal with. No lenders are handing out big bucks right now not after 2 weeks in office and going from one extreme to another. Chip was 💯 correct unless a couple of years down the road this is the new norm. I knew after 2 offers 2k higher and the next the same but up 50k? You and only you know what is best for your business and can weigh out the odds. Good luck and hopeful you will get one sooner than later.