Square Capital is great, just don't rely on it.

Marc201 · ‎08-30-2018

For my fellow business owners.... I wanted to share my point of view with you. Square Capital is great, but please don't put yourself in the position that we did, and come to rely on it. There is no rime or reason why you will get a loan or when you will get a loan. We are currently on our 3rd plan and historically, 70% has become the mark where we have been offered another plan. Well, not this time. At 67%, I took a risk and put a down payment on a used piece of equiptment for our business. I figured that around 70% Square would do what they have always done, and make me another offer. Well, I am currently at 80% and have just been told that we are not eligible! Our sales are up, our new clients are up and this loan has been paid back in less than 4 months and only through credit card processing. Well, now I am in trouble. I am not blaming Square in any way. This is completely my fault. Losing my deposit will only be my fault. Like I said, Square is great but please don't make the same mistake I did and think that you know what they are thinking. I even asked via email if there was something that we did that changed and I was only told that there is no determining factors when each plan is offered. After reading that and knowing our history, I believe that we didn't do a single thing wrong. Please don't think that you can come to rely on Square Capital. I will continue to proide you all with updates on our situation. Just sad.

User421j2 · ‎08-30-2018

I also resonate with that story. I was offered a small capital loan back in 2017, which was paid in full within 75 days. I regularly see people posting messages about being offered second/third/fourth loans prior to being paid in full but that never happened here. Rather, I waited another 10 months after paying the original loan off before being offered my second loan. I reached out a few times to ask square about best practices to become eligible for further funding but always received the same copy-paste reply about "don't contact us, we will contact you" etc etc. To add to the confusion, I processed over 3 times the sales volume thus far in 2018 than I did for ALL of 2017, so my risk factor was practically ZERO for square. They talk a lot of about algorithms but they are clearly missing the mark in some cases.

I don't think this program has matured enough to become a viable option for many businesses. However, this may just be an isolated experience because it sounds like many others are being offered loan options frequently.

VanKalkerFarms · ‎08-30-2018

@Marc201, definitely good advice and is applicable to any loan service be it Square Capital or a line of credit or a traditional bank loan. being dependent on any business outside your business is always a chance of something going wrong, so it is good to try and make contingency plans.

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page

Kimmiesue12001 · ‎09-02-2018

Many of us completely understand your situation. I'm at 100% paid on my 5th capital loan and after so many you get pretty confident approximately when another offer will arrive. And when it doesnt we all kind of freak out. I do not have another offer nor do I expect one. I'm sorry you went and put money out expecting a loan. Keep processing...it still might happen. Square has been great other than the capital inconsistency.

Soulsquad · ‎09-03-2018

Don't feel like the Lone Ranger! Same situation, i think its a great program, but like you, I EXPECTED IT, and when it didnt come, it drove me crazy, So glad im over it; Although im sure my 6th loan will come, i just expected 5 PAID loans, was enough to keep it going, I was wrong; The silver lining, been able to keep all the money, less the fees, SO 6 in one hand, half a dozen in the other. Good vibes to, hopefully they will give us LONG STANDING CUSTOMERS offers as they have in the past! Ive been with Square since it's inception...