June 13, 2024
Shopify Capital Loan

Shopify Capital Loan

 

Shopify Capital Loan is a funding program that offers loans and cash advances to eligible merchants who use Shopify as their ecommerce platform.

Arewa House will be discussing these topics under Shopify Capital Loan in details:

– Shopify Capital loan requirements

– Shopify Capital loan calculator

– Shopify Capital eligibility review

– Shopify Capital login

– Shopify Capital interest rate

– Shopify Capital contact

Shopify Capital loan requirements

Shopify Capital offers two types of funding: loans and merchant cash advances. Loans are lump-sum amounts that you receive in exchange for a fixed fee. Merchant cash advances are also lump-sum amounts, but you repay them with a percentage of your future sales revenue.

To qualify for Shopify Capital funding, you must meet the following requirements:

– You must be a Shopify merchant with a Shopify store active for at least 3 months.

– Your business must be based in the United States, Canada, the United Kingdom, or Australia.

– Your business must have a minimum of $5,000 in sales per month (for US merchants) or $10,000 in sales per month (for non-US merchants).

– Your business must have a low-risk profile, which is determined by Shopify based on your sales history, chargebacks, refunds, and other factors.

– Your business must comply with Shopify’s acceptable use policy and terms of service.

– You must have Shopify Payments or a third-party payment provider enabled on your store.

Shopify Capital does not require personal guarantees or credit checks, which makes it easier for new or low-credit businesses to access funding. However, this may also result in higher borrowing costs compared to other financing options.

Shopify Capital loan calculator

If you want to estimate how much funding you can get from Shopify Capital and how much it will cost you, you can use the Shopify Capital loan calculator. This is a free tool that lets you input your desired funding amount, your average monthly sales, and your repayment rate. The calculator will then show you the borrowing fee, the total amount to repay, and the estimated repayment time.

For example, if you want to borrow $10,000 from Shopify Capital, and your average monthly sales are $20,000, and your repayment rate is 10%, the calculator will show you the following results:

– Borrowing fee: $1,300

– Total amount to repay: $11,300

– Estimated repayment time: 6 months

You can use the calculator to compare different funding scenarios and find the best option for your business. However, keep in mind that the calculator is only for illustrative purposes and does not guarantee that you will receive an offer from Shopify Capital.

Shopify Capital Loan eligibility review

Shopify Capital does not accept applications from merchants. Instead, Shopify Capital reviews your store’s performance and sends you an invitation to apply for funding if you are eligible. You can check your eligibility status from the Capital page of your Shopify admin.

If you are eligible, you will see a message from Shopify Capital with a link to view your funding offers. You can choose from up to three funding options, each with a different amount, fee, and repayment rate. You can compare the terms of each option and select the one that suits your needs.

If you are not eligible, you will see a message that says “You’re not eligible for funding at this time”. This means that Shopify Capital has not found any funding options for your store based on your current sales performance and risk profile. You can improve your chances of becoming eligible by increasing your sales, reducing your chargebacks and refunds, and maintaining a good relationship with Shopify.

Shopify Capital reviews your eligibility periodically and updates your status accordingly. You can also request a manual review by contacting Shopify Capital support.

Shopify Capital Loan login

To access your Shopify Capital account, you need to log in to your Shopify admin account. From there, you can go to the Capital page, where you can see your funding offers, your current funding status, your repayment progress, and your funding history.

You can also manage your funding from the Shopify app on your mobile device. You can view your funding details, make manual repayments, and request additional funding if you are eligible.

Shopify Capital Loan interest rate

Shopify Capital does not charge interest on its funding. Instead, it charges a fixed fee that is added to the principal amount. The fee is determined by Shopify based on your sales performance, risk profile, and funding amount. The fee does not change over time and does not compound.

The fee is expressed as a percentage of the principal amount. For example, if you borrow $10,000 with a 13% fee, you will have to repay $11,300 in total. The fee percentage ranges from 9% to 17% for loans, and from 10% to 20% for merchant cash advances.

The fee percentage is not the same as the annual percentage rate (APR), which is a common way of measuring the cost of borrowing. The APR takes into account the interest rate, the loan term, and the frequency of payments. Since Shopify Capital does not charge interest and does not have a fixed loan term or payment schedule, the APR is not applicable.

However, you can still estimate the effective APR of your Shopify Capital funding by using online calculators or formulas. The effective APR will vary depending on your sales volume, repayment rate, and repayment time. Generally, the higher your sales volume and repayment rate, and the shorter your repayment time, the lower your effective APR will be.

Shopify Capital Loan contact

If you have any questions or issues regarding Shopify Capital, you can contact Shopify Capital support by phone, email, or chat. You can find the contact details on the Shopify Capital help page.

Shopify Capital is a convenient and flexible way to get funding for your e-commerce business. Whether you need to buy inventory, launch a marketing campaign, hire staff, or pursue other growth opportunities, Shopify Capital can help you achieve your goals. To find out if you are eligible for Shopify Capital, log in to your Shopify admin and check the Capital page.

The Main Benefits of Shopify Capital

– It is fast and easy to apply. You can check your eligibility and offers online, and receive the funds in as little as two days if approved.

– It is flexible and convenient. You can use the funds for any business purpose, such as inventory, marketing, payroll, or expansion. You can also pay back the loan automatically as a percentage of your daily sales, or renew it early if you need more funding.

– It is founder-friendly and equity-free. You don’t have to give up any ownership or control of your business, or pay any interest or fees. You only pay a fixed amount that is agreed upon upfront.

However, Shopify Capital also has some drawbacks, such as:

– It is not available to everyone. You have to meet certain criteria to be eligible for Shopify Capital, such as having a Shopify store for at least two months, having a certain amount of sales, and being located in a supported country.

– It is not the cheapest option. The fixed amount that you have to pay back is based on a factor rate, which is similar to an interest rate. Depending on your sales volume and repayment period, the factor rate can range from 1.1 to 1.4, which means you could end up paying 10% to 40% more than the original amount you borrowed.

– It is not the most flexible option. You have to accept the offers that Shopify Capital gives you, which may not match your exact needs or preferences. You also have to stick to the repayment schedule that is based on your sales, which may vary depending on your business performance and seasonality.

Frequently Asked Questions on Shopify Capital loan

What is Shopify Capital?

Shopify Capital is a funding program that offers loans and cash advances to eligible Shopify merchants. It helps them grow their businesses, invest in inventory, marketing, payroll, and more.

How does Shopify Capital work?

Shopify Capital works by analyzing your store’s sales and cash flow to determine if you qualify for funding. If you do, you will receive an offer in your Shopify admin. You can choose the amount and the repayment rate that suits your needs. Once you accept the offer, you will receive the funds in your bank account within a few days.

How do I repay Shopify Capital?

Shopify Capital is repaid automatically as a percentage of your daily sales. The repayment rate varies depending on the offer you choose. There is no fixed term or deadline to repay the full amount. You only pay when you make sales.

How much does Shopify Capital cost?

Shopify Capital does not charge any interest or fees. The only cost is the fixed fee that is added to the funding amount. The fee is determined by the offer you select and does not change over time. You will see the total amount you need to repay before you accept the offer.

How can I use Shopify Capital?

You can use Shopify Capital for any business purpose that helps you grow your store. For example, you can use it to buy more inventory, launch a marketing campaign, hire new staff, open a new location, or upgrade your equipment.

Who is eligible for Shopify Capital?

Shopify Capital is available to Shopify merchants who meet certain criteria, such as having a Shopify store for at least two months, having a certain amount of sales, and operating in a supported country. The eligibility requirements may vary depending on the type and amount of funding you apply for.

How do I apply for Shopify Capital?

You do not need to apply for Shopify Capital. If you are eligible, you will receive an offer in your Shopify admin. You can review the offer details and accept it online. If you do not see an offer, it means you are not eligible at this time. You can check back later to see if your eligibility changes.

How long does it take to receive Shopify Capital?

Once you accept an offer, it usually takes two to five business days for the funds to appear in your bank account. The exact time may vary depending on your bank and the type of funding you receive.

Can I renew or increase my Shopify Capital?

Yes, you may be eligible for additional funding before you repay the current amount. You will see a new offer in your Shopify admin if you qualify. You can accept the new offer and receive more funds. The repayments for the new amount will start after you repay the previous one.

How can I track my Shopify Capital?

You can track your Shopify Capital balance, repayments, and history in your Shopify admin. You can also download reports and statements for your accounting and tax purposes..

Verdict

Shopify Capital is a convenient and accessible way to get funding for your Shopify store, but it may not be the best option for everyone. You should compare Shopify Capital with other funding sources, such as banks, credit cards, or crowdfunding, and weigh the pros and cons of each one. You should also consider your business goals, cash flow, and risk tolerance before applying for Shopify Capital.

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