If you’ve applied for a loan or any kind of advance from Square Capital so that you can get your business up and going and have been declined, there are a few things that you can do if you want to try again. The first thing would be not to panic. Just because you were denied by one company doesn’t mean that you’re going to be denied by all of the companies that you apply for a loan through. Talk to the lender to find out exactly why your request was denied. Look at your credit record, both personal and business, to determine if your score could have prevented you from being accepted.
There is one loan program that Square Capital offers for those who need financial assistance with their business. Even though there are a lot of details in the name of the program, it’s similar to a merchant cash advance. This means that the payment that you make to the company for the loan comes from the debit and credit card sales that are made in your business each month. A percentage of the sale is sent to Square that will be applied to the loan. It seems as though this type of program would be easy to get approved for, but there are a few reasons as to why you might not be able to secure this kind of loan through Square Capital.
One of the things about the Flex Loan that is offered by Square is that it’s only for businesses that use Square during the point of sale transactions with customers. You also need to keep in mind that a loan through Square has to be paid back within 18 months compared to you having a little longer to pay back the loan with another company. Since there is a due date with the company, it means that the interest rates are sometimes kept lower because Square knows that it will receive the money back on time because it acts in a similar way to a merchant cash advance.
When you apply for a loan through Square Capital, you’ll go through an algorithm process that takes place over the computer in most situations. Your approval or denial is given in just a few days because of this method. However, that also makes it easier to get denied for the loan because the computer reviews your information instead of a person. There are several reviews about Square Capital and the process of being approved for a loan. Many people who have applied for a loan have been denied soon after applying and given no reason as to why. Some businesses that have Square Capital accounts have had them deactivated for no reason as well. These are often people who have already been customers of Square and have paid loans back within the designated time and have still been denied another loan or have been denied access to their accounts so that they can no longer apply. These are people who have shown the company that they are able to pay back a loan and have still been denied.
One of the reasons as to why you might not be approved for a loan is because technology can’t always be trusted. Since there is an algorithm used when deciding the loan decision, it’s sometimes the computer that denies you instead of the company. If you feel that you’ve been denied unfairly, then you can talk to someone in person. You should be prepared to show that your sales history is long enough to pay back the loan within the 18 months required by the company. Another issue would be the way that you’ve paid off loans with the company in the past or if you pay back less than the amount that is required each month.