Shopify Capital review: pros, cons, and is it right for your business?
Droppshipping Advertising
Author: Elysa
April 11, 2025
Contents
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Capital is the small business financing arm of the highly popular e-commerce platform, Shopify Inc. Small business owners using the marketplace may be eligible for a Shopify loan or cash advance.
However, applications are invitation-only. This means the company will notify you when your e-commerce store or business is eligible. Have you received an offer? Do you want to learn more about Shopify reviews? We can help by answering these questions in the rest of this guide.
So, feel free to continue reading.
What is Shopify Capital?
Shopify Capital is a financing service or solution offered by Shopify. This service provides loans and cash advances to merchants who use the Shopify platform for their e-commerce business.
Shopify Capital loans are based on the store's previous sales, which means merchants can obtain funding without having to provide traditional collateral, such as real estate or assets.
Additionally, Shopify Capital offers a cash advance that allows merchants to receive a lump sum of money. This option is often used by merchants to fund growth projects or cover unexpected expenses.
How does Shopify Capital work?
The operation of Shopify Capital is relatively simple. Here are some steps that illustrate how it works:
Loan evaluation: first, Shopify Capital evaluates the loan request based on the merchant's sales data and payment history.
Financing offer: next, if the merchant is eligible, Shopify Capital makes a financing offer in the form of a loan or cash advance. The amount offered will depend on the size of the business and its sales history.
Acceptance of offer: if the merchant accepts the financing offer, Shopify Capital transfers the money to the merchant's bank account.
Repayment: the loan or cash advance is then repaid to Shopify Capital on a daily or weekly basis. Repayment charges are set in advance.
Shopify Capital rates and fees
Before discussing cash advances and merchant loans, you should first understand how the rates work. The marketplace platform does not apply standard interest rates. Instead, it sets loan fees called factor rates.
The factor rate is 1.1 or 1.13. Note that the rate you receive depends on the amount you borrowed and the strength of your business. Suppose you borrowed $50,000 in the form of a loan to market your products.
To calculate your debt amount, multiply the advance amount by the factor rate. If your factor rate is 1.1, the formula is as follows: $50,000 x 1.1 = $55,000. The total becomes your fixed borrowing cost and does not change.
Shopify Capital Loans
Shopify Capital business loan range from $200 to $1 million. However, the amount that successful businesses or merchant sites can obtain depends on their average revenue and cash flow. The loan term is 12 months.
The funds are not deposited into your seller account, but into a business bank account a few business days after the loan is finalized. You can use the money to grow your business or sell your products online.
On the other hand, the business loan repayment comes from future sales. The company withholds a certain percentage of your daily sales with what it calls the discount rate. In fact, the average repayment rate is 10%, but it can vary up or down depending on your loan offer.
Based on the average, 10% of your daily sales are dedicated to repaying the loan. For successful businesses or e-commerce sites, the 60-day milestones must also be met. You must repay one-sixth of the loan every 60 days to ensure you are on track for the 12-month period.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Shopify Merchant Cash Advance
Merchant cash advances work like a business loan. Additionally, loan amounts also range from $200 to $1 million, and repayment also comes from the daily sales discount.
The main difference between the two products is the loan repayment term. Lenders must repay the business loan within 12 months, while merchant cash advances have no set deadline.
You repay the merchant cash advance from your profits or daily store sales. On days when revenue is high, you will repay a larger portion of the loan. On low-revenue days, the repayment is lower. If your revenue is $0 per day, you pay nothing at all.
Connecting a Business Bank account
Not all payment methods are eligible for Shopify Capital. You must connect your business bank account to receive funds. Since the program is only available to Shopify businesses, your account is likely already linked. You will receive the funds in the same business bank account linked to your Shopify business.
What are the eligibility criteria for Shopify Capital?
Are you opening your store on Shopify? Do you want to take advantage of marketplace financing? Be aware that Shopify Capital does not specify the eligibility criteria for a business. Since it is invitation-only, you will not know if you are eligible until you receive an offer. However, we know that Shopify Capital does not impose minimum requirements for the following:
Credit ratings.
Global stock
Annual income.
Time spent in the company.
Most lenders use these parameters as a reference for minimum qualifications, which is good news for owners looking to create an e-commerce site on the platform. If you have a startup, a small business with a low credit score, or a low-revenue business, this is also good news for you.
Minimum requirements
There are a few minimum conditions that we can discuss. First, your business must be a Shopify store based in the United States or Canada. Additionally, Shopify Capital loans are only available in certain states. Merchant cash advances are available in all states and Canada. The company also offers merchant cash advances in the United Kingdom.
Your store must use Shopify Payments or another third-party payment provider. In fact, Shopify does not say this directly, but it is implied that business owners using Shopify Payments have a slight advantage with this e-commerce solution.
Shopify Capital Eligibility
The company indicates that e-commerce sites or startups must present a "low risk," but it does not specify what this means. We can infer that it involves being in reliable industries and having a consistent sales history for your store. However, the company (Shopify) does not publish precise requirements.
You must also maintain a certain sales volume, but Shopify does not define this amount. In fact, Shopify Capital makes it clear that it regularly monitors seller accounts if you sell on the platform.
States eligible for Shopify Capital business loans
If you own a Shopify store and are considering a loan to continue selling products, you must first check your state's eligibility. Here is a list of states eligible for this program:
Arizona.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Louisiana.
Maine.
North Carolina.
South Carolina.
Utah.
Washington.
Wisconsin.
Wyoming.
Is Shopify Capital a good thing?
For Shopify Capital, you should know that factor rates are competitive compared to alternative short-term financial marketplaces. However, they are more expensive than traditional banks.
The trade-off for the higher rate is the fast turnaround time for funding and the simplified approval process. One way to compare rates is to convert the factor rate into an APR. Let's continue with the example of a $50,000 loan at a 1.1 factor rate for a 12-month term.
Again, the factor rate formula is $50,000 x 1.1 = $55,000, which means you will pay the equivalent of $5,000 in interest on the loan. This equates to an average monthly payment of $4,583.33 over the 12-month term. If you calculate this as an APR, it equals 17.98%.
Reach $1,000 a day or your money back
Reach $1,000 a day or your money back
Reach $1,000 a day or your money back
Reach $1,000 a day or your money back
Reach $1,000 a day or your money back
Reach $1,000 a day or your money back
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital Reviews
Obviously, a higher factor rate would mean more interest paid on the principal. If you have received a financing offer, be sure to understand the factor rate and the amount of interest you will pay on the loan.
Shopify Capital's discount rate means you must budget for a drop in revenue. The average rate is 10%, but it can go higher. Additionally, the discount rate is based on your overall profit or gross sales.
If your business processes a large number of refunds and returns, the actual amount you pay is much higher than the rate. For example, if you made $10,000 in online sales with a 10% rate, you pay $1,000, leaving you with $9,000 in revenue.
But if you refund $2,000, your daily revenue is now reduced to $7,000. For this reason, after creating a store on Shopify, you must implement a good SEO strategy to sell better online.
Shopify Capital funding offer
Shopify monitors seller accounts and sends an invitation to apply when you become eligible. Note that receiving an offer does not mean you are approved. Offers are based on pre-qualification eligibility. You will typically receive three offers and choose the one that best fits your business.
Once you have selected an offer, the Shopify Capital underwriting team gets involved. At this stage, you may need to provide additional information to verify your business.
The Shopify Capital underwriting team may uncover issues that disqualify your business. If this happens, the company may make an alternative loan offer or state that you are not eligible at this time.
If you are approved and accept the offer, the fund disbursement will take approximately 2 to 5 business days.
How to access loan offers in the Shopify app
Once you have received your offers, complete the application process by following these steps:
In the Shopify dashboard, go to Settings > Capital.
Select"View credit offers".
Compare the conditions of the three lenders' offers and select "Apply" below the one you want.
Review the terms of the Merchant Loan Agreement (merchant cash advance) or Shopify Capital Agreement (business loan).
After reviewing the conditions, return to the "Review" dialog box and accept the conditions.
Then select"Accept conditions".
After submitting the acceptance terms, the underwriting process will be executed and will inform you if you are approved. You can then accept the offer.
Shopify Capital post-funding
Does Shopify Capital impact your credit report? In fact, the repayment of the short-term business loan and merchant cash advances comes from the daily sales proceeds. Additionally, the payment process is automatic. There is no deadline for repaying the merchant cash advance.
Payments fluctuate based on your daily revenue until the total amount is repaid. The 12-month commercial loan term means you may need to make payments on the daily disbursement if your revenues lag behind milestones. You must pay one-sixth of the loan every 60 days to stay on track.
Can you repay Shopify Capital early? In the previous example of borrowing $50,000 at a factor rate of 1.1, the total amount due is $55,000. This means that the total payments every 60 days must amount to approximately $9,167.
If the daily disbursement over these 60 days does not yield $9,167, you will need to make additional payments or pay early to stay on track. Moreover, once you have repaid 25% of the loan, you can pay off the remaining amount at any time.
Making payments from the Shopify app
From the Shopify dashboard:
Go to Settings > Capital.
Select Make a payment.
Choose Personalized amount or Total remaining balance.
Select Next Step to check the payment amount.
If everything is correct, select Make payment.
Shopify will send a confirmation once completed.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Shopify Capital: pros and cons
You’ve just set up a Shopify store to sell online, and you’re interested in Shopify Capital’s offer? Discover below the advantages and disadvantages you might expect:
Pros
No credit score requirement.
Quick turnaround on funding.
Large amounts of borrowing.
Easy repayment tools.
Relatively reasonable rates.
Merchant cash advance refunds adjust to your income.
Cons
Only available to Shopify users.
Application process by invitation only.
Eligibility criteria not disclosed.
Frequent restitution.
Conclusion
Shopify Capital is ideal for Shopify e-commerce businesses that need quick funding to grow their business. However, Shopify Capital loans and merchant cash advances are available by invitation only. Thus, the main concern is whether the cost of funding is worth it for your business. If you use Shopify and have not received an invitation to apply, you may need to further develop your business before receiving an offer.
Frequently asked questions
Does Shopify Capital impact your credit report?
Yes, Shopify Capital performs a credit check on funding applicants to assess their eligibility and determine the terms of their loan or cash advance. This may include checking the applicant's personal and business credit scores, as well as other financial and business criteria such as sales and payment history.
What is Shopify Capital?
Shopify is a publicly traded company. As of 2024, its market capitalization stands at several billion dollars. Capital fluctuates based on the company’s performance and financial markets.
What is Shopify’s commission?
Shopify charges a commission on sales made through its platform. The percentage varies depending on the plan chosen: Basic Shopify (2.9% + $0.30 per transaction), Shopify (2.6% + $0.30 per transaction), and Advanced Shopify (2.4% + $0.30 per transaction). Additional fees may apply for using external payment gateways.
How does Shopify pay?
Shopify pays merchants via Shopify Payments, an integrated service that transfers funds directly to their bank account. Payment processing times vary by country and payment method used, generally between 1 to 3 business days.
Similar articles
Google ads vs Facebook ads for Dropshipping: Which is the best option?
May 6, 2025
Droppshipping Advertising
Master Facebook Ads for dropshipping in 2024: a comprehensive step-by-step guide
May 3, 2025
Droppshipping Advertising
Steps to follow to make your dropshipping campaign on Instagram Ads
May 3, 2025
Droppshipping Advertising
Our Free Adspys
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
1 winning product everyday.
Follow us!
Our Free Adspys
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
1 winning product everyday.
Follow us!
Our Free Adspys
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
Find winning products on our Tiktok adspy today!
Find winning products on our Pinterest adspy today!
Find winning products on our Facebook adspy today!
1 winning product everyday.
Follow us!
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025
Find out more
Read more
Minea © 2025