Get Shopify Capital: A Simple Guide
1. Understand Shopify Capital Eligibility
1.1 Check Your Store’s Performance
Shopify Capital primarily assesses your store’s sales history and performance within the Shopify platform. While there isn’t a publicly disclosed minimum sales threshold, offers are typically extended to merchants with a consistent and significant sales volume over several months, often at least three to six months. Log into your Shopify admin, navigate to “Analytics” > “Reports,” and review your “Sales over time” and “Total sales” reports. Focus on steady growth and consistent revenue generation. A store with sporadic sales or declining trends is less likely to receive an offer. Ensure your sales are primarily processed through Shopify Payments, as this provides Shopify with the clearest picture of your revenue.
1.2 Review Geographic and Business Type Restrictions
Shopify Capital is not available in all countries or for all business types. As of current information, it is primarily available to eligible merchants in the United States, United Kingdom, and Canada. To confirm your eligibility based on location, check the Shopify Capital section within your Shopify admin or refer to Shopify’s official documentation. Certain high-risk business types or those operating in regulated industries (e.g., firearms, adult content, specific financial services) may also be excluded, regardless of sales performance. Ensure your business model aligns with Shopify’s acceptable use policies.
2. Receive and Review Your Shopify Capital Offer
2.1 Monitor Your Shopify Admin for Offers
Shopify Capital offers are extended by invitation only. You will not apply for Shopify Capital; rather, if your store meets their criteria, an offer will appear directly in your Shopify admin. Regularly check the “Finances” section (or a similar prominent notification area) within your Shopify dashboard. You may also receive email notifications from Shopify regarding a new Capital offer. These offers are dynamic and can change based on your store’s performance, so an offer available today might be different or no longer available tomorrow.
2.2 Understand the Offer Details (Amount, Fee, Remittance Rate)
When an offer appears, carefully review its components. The offer will typically present a range of funding amounts you can choose from. For each amount, two key figures will be displayed: the “total to repay” (which includes the original principal amount plus a fixed capital fee) and the “remittance rate.” The remittance rate is the percentage of your daily sales that Shopify will automatically deduct until the total to repay is met. For example, an offer might be for $10,000 with a total to repay of $11,300 and a 10% remittance rate. This means for every $100 in sales, $10 will be remitted to Shopify until $11,300 is collected. There are no interest charges in the traditional sense; the fee is fixed upfront regardless of how long it takes to repay.
3. Accept Your Shopify Capital Offer
3.1 Confirm Your Bank Account Information
Before accepting an offer, Shopify will require you to confirm or update the bank account linked to your Shopify Payments. This is the account where the funds will be disbursed. Navigate to “Settings” > “Payments” in your Shopify admin, then locate your “Payout account” details. Ensure the routing number and account number are accurate and that the account is active and able to receive ACH transfers. Inaccuracies can delay or prevent the disbursement of funds.
3.2 Digitally Sign the Agreement
After selecting your desired funding amount, you will be presented with the Shopify Capital agreement. Read this document thoroughly. It outlines the terms, conditions, the total amount to repay, the remittance rate, and the legal obligations. Pay close attention to clauses regarding default and what happens if your sales significantly decline. Once you understand and agree, you will digitally sign the agreement directly within the Shopify admin. This typically involves clicking an “Accept” or “Sign Agreement” button, which acts as your electronic signature. Funds are usually disbursed to your confirmed bank account within 2-5 business days after acceptance.
4. Manage Your Shopify Capital Repayments
4.1 Understand Automatic Daily Remittances
Repayments for Shopify Capital are automatically deducted from your daily sales. Each day, a fixed percentage (your remittance rate) of your sales processed through Shopify Payments will be withheld and applied towards your outstanding balance. This process continues until the “total to repay” amount is fully collected. There are no fixed monthly payments or due dates; the repayment amount fluctuates based on your daily sales volume. If you have a day with no sales, no remittance will be collected for that day.
4.2 Monitor Your Repayment Progress in Shopify Admin
You can track your repayment progress in real-time within your Shopify admin. Navigate to the “Finances” section and then to “Shopify Capital.” Here, you will see your original offer details, the total amount repaid so far, and the remaining balance. This dashboard provides transparency on how much has been collected and how much is still owed, allowing you to project your repayment timeline based on your ongoing sales performance. Shopify also sends periodic email updates on your repayment status.
FAQs
Q: Can I apply for Shopify Capital if I don’t see an offer?
A: No, Shopify Capital is by invitation only. You cannot directly apply for it. Offers are extended based on your store’s performance and eligibility criteria as determined by Shopify’s internal algorithms. The best way to receive an offer is to maintain consistent sales volume and good standing within the Shopify ecosystem.
Q: What happens if my sales drop significantly after accepting Shopify Capital?
A: Since repayments are based on a percentage of daily sales, if your sales drop, your daily repayment amount will also decrease. This means it will simply take longer to repay the total amount. There are no late fees or penalties for slower repayment because the fee is fixed upfront. However, Shopify may review your account if repayment takes an exceptionally long time or if sales cease entirely.
Q: Is Shopify Capital a loan?
A: Shopify Capital offers are typically structured as a merchant cash advance (MCA) or a revenue-based financing agreement, not a traditional loan. This means Shopify purchases a portion of your future sales at a discount. The key difference is that there’s no interest rate; instead, there’s a fixed capital fee, and repayments are tied directly to your sales volume, not fixed installments.
Q: Can I get another Shopify Capital offer if I still have an outstanding one?
A: In some cases, yes. Shopify may extend a new offer even if you haven’t fully repaid your current one, especially if your sales performance continues to be strong. However, the new offer might be for a different amount or terms, and it’s less common than receiving an offer after a previous one has been fully repaid.
