Shopify Capital: 7 Things You Need to Know

Starting an online business can be an exciting and rewarding experience, but it can also be challenging. One of the biggest challenges that entrepreneurs face is finding the necessary funding to get their business off the ground or to take it to the next level. 

Yardline's ecommerce Funding solutions offer small businesses instant access to the best rates and terms to meet your business funding needs.

There are also other funding options that you may want to learn more about. Below, we outline what you need to know about Shopify Capital and how it works.

What is Shopify Capital?

Shopify Capital is a financial service provided by Shopify, a leading ecommerce platform used by over one million businesses worldwide. Shopify Capital offers business funding options to eligible Shopify merchants who need capital to expand their businesses and invest in inventory, marketing, or other expenses.

How does Shopify Capital work?

Shopify Capital offers small business loans to eligible merchants on the Shopify platform. The loans are based on a merchant's past sales history, with the repayment being made through a percentage of future sales. This means that repayment is made gradually over time as sales occur, and merchants do not need to make fixed monthly payments.

To qualify for Shopify funding, merchants need to meet certain eligibility criteria, such as having a minimum of six months of sales history on Shopify and meeting minimum revenue requirements. Shopify Capital also takes into account the merchant's credit history and business performance to determine eligibility and loan amount.

What You Need to Know About Using Shopify Capital

There are several reasons why Shopify Capital is a great option for merchants looking for funding to grow their businesses, however, it's not for everyone. Here are seven things you need to know about using Shopify Capital:

1. Accessibility
   Shopify Capital provides a convenient and accessible way for Shopify merchants to access Shopify funding without having to go through the traditional loan application process, which can be time-consuming and difficult.
2. Flexibility
   The repayment structure of Shopify Capital loans is flexible and based on a merchant's sales performance, which means that merchants can pay as their business scales.
3. Convenience
   Shopify Capital is integrated with the Shopify platform, which means that eligible merchants can apply for and receive Shopify funding without having to leave the platform.
4. Limited Funding Options
   Shopify Capital only provides financing options to businesses that use the Shopify platform, which means that businesses may have fewer funding options than they would with traditional lenders.
5. High-interest Rates
   Shopify Capital provides funding to businesses with interest rates that may be higher than those offered by traditional lenders.
6. Limited eligibility
   Shopify Capital only offers financing to businesses that meet certain criteria, such as a minimum credit score and a minimum amount of revenue generated through the Shopify platform.
7. Limited geographic availability:
   Shopify Capital is currently only available in a limited number of countries, which means that businesses located outside of those regions may not be eligible for funding.

If you find that Shopify Capital isn’t for you, you can open yourself up to many other funding options with just one application. When you apply for funding with Yardline you’ll have access to the best rates and terms to meet your business needs. You’ll also have access to our various funding options, including:

• Small Business Loans
• Revolving Lines of Credit
• Revenue Based Financing
• Personal and Business Credit Cards
• PO and Invoice Factoring
• Inventory Financing
• SBA Loans
  
  

Apply for funding from Yardline today to watch your business grow.