Shopify Capital

Shopify Capital is a working capital financing product offered by Shopify, the popular ecommerce platform. Shopify Capital provides funding exclusively to merchants that sell through Shopify, and uses the merchant's sales history on the platform to determine eligibility and offer amounts.

Shopify Capital offers two main products: merchant cash advances and business loans. A merchant cash advance provides an upfront lump sum in exchange for a fixed fee, with repayment taken as a daily percentage of Shopify sales until the total repayment amount is reached. A Shopify Capital business loan works similarly but with a fixed repayment period. Both products are repaid automatically from daily sales processed through Shopify.

Because repayment is tied to sales rather than a fixed monthly schedule, Shopify Capital can be easier to manage during slow periods. When sales are low, less is automatically repaid. When sales are strong, more is applied to the balance.

Shopify Capital only requires an active Shopify account with a qualifying sales history. There is no traditional loan application. Eligible merchants may receive an offer directly in their Shopify admin.

As with all platform-based merchant financing, the cost of Shopify Capital is expressed as a fixed fee rather than an annual interest rate. Business owners should calculate the full cost and compare it against alternatives such as bank loans, credit union lines of credit and SBA loan programs.

Shopify Capital is not available to businesses that do not sell through Shopify. It is designed to be a convenient financing option for Shopify merchants who need working capital for inventory, marketing or other business expenses. Always compare the full cost before accepting an offer.