Payability kontra Shopify Capital: En omfattende sammenligning

Table of Contents

1. Introduction
2. What is Shopify Capital?
3. What is Payability?
4. Detailed Comparison
5. Practical Applications and Examples
6. Conclusion
7. FAQ

Introduction

For eCommerce entrepreneurs, securing funding to scale their operations or manage cash flow can be a daunting task. Traditional banks often impose restrictions and lengthy processes, leaving many online sellers in search of more accessible financing options. This is where Payability and Shopify Capital come into play, offering alternative funding methods tailored specifically for eCommerce businesses. But which one is right for you? This blog post will provide an in-depth comparison of Payability and Shopify Capital to help you make an informed decision.

What is Shopify Capital?

Overview

Shopify Capital is an embedded financing solution offered directly within the Shopify platform. Launched in 2016, it aims to provide easy access to funds for eligible Shopify merchants, either through loans or merchant cash advances.

How It Works

Shopify Capital offers two types of financial products:

1. Merchant Cash Advance
2. Business Loans

Merchant Cash Advance

Here, Shopify advances you a lump sum of cash in exchange for a fixed percentage of your future sales. A unique feature of this option is the flexibility in repayment, which aligns with your sales performance. If your sales are high, the repayments increase, and vice versa.

Business Loans

In this model, Shopify provides a loan that must be repaid in fixed installments over 12 months. Like the merchant cash advance, approvals are based on your Shopify sales history without requiring credit checks.

Pros and Cons of Shopify Capital

Pros:

• Fast approval and funding process.
• No credit check required.
• Flexible repayment terms with merchant cash advance.
• Embedded within Shopify, making it seamlessly accessible.

Cons:

• Limited to Shopify merchants.
• Available only in certain regions (notably different states in the US, Canada, and the UK).
• Slightly lower borrowing limits compared to some competitors.

What is Payability?

Overview

Payability is a specialized financing company designed for eCommerce sellers across multiple platforms, including Shopify, Amazon, eBay, and Walmart. With Payability, you can access funds quickly without credit checks, allowing you to focus on growing your business.

How It Works

Payability offers two primary products:

1. Instant Advance
2. Instant Access

Instant Advance

Instant Advance functions similarly to a merchant cash advance. Payability provides up to $250,000 based on your sales performance and account health. It’s not contingent on your credit score, making it an attractive option for many online sellers.

Instant Access

This solution provides you with daily payouts based on your marketplace sales, ensuring consistent cash flow. For example, if you sell on Amazon, you can receive daily funds instead of waiting for Amazon’s payout cycles.

Pros and Cons of Payability

Pros:

• Available for multiple eCommerce platforms.
• Fast funding—often within 24 hours.
• No credit check required.
• Flexible solutions tailored to various sales channels.

Cons:

• Fees can be higher than traditional financing options.
• Daily repayments can be challenging for businesses with inconsistent sales volumes.

Detailed Comparison

Eligibility

Shopify Capital:

• Must be a Shopify merchant.
• Eligibility based on Shopify sales history and account health.
• Limited geographic availability.

Payability:

• Open to sellers on multiple platforms (Shopify, Amazon, eBay, etc.).
• Eligibility based on general eCommerce performance.
• Wider geographic reach.

Approval Process

Shopify Capital:

• Automated eligibility notifications within the Shopify admin.
• Minimal paperwork and fast approval (typically within 2 business days).

Payability:

• Quick application process requiring connection to sales accounts.
• Approval and funding often occur within 24 hours.

Repayment Terms

Shopify Capital:

• Merchant Cash Advance: Fixed percentage of daily sales until the amount is repaid.
• Business Loans: Fixed installments over 12 months with specified milestones.

Payability:

• Instant Advance: Fixed daily repayment based on sales performance.
• Instant Access: Daily payouts with a small fee deducted.

Funding Limits

Shopify Capital:

• Funding range typically from $200 to $1,000,000.

Payability:

• Up to $250,000 per advance.

Practical Applications and Examples

Example 1: Boosting Inventory

Shopify Capital: An online store owner might receive a $15,000 advance to stock up on holiday inventory, repaying a portion of daily sales.

Payability: A merchant selling on multiple platforms could get an advance based on overall sales, enabling them to bulk purchase seasonal stock.

Example 2: Financing a Marketing Campaign

Shopify Capital: With a $10,000 loan, a Shopify store could run a comprehensive digital marketing campaign, repaying in fixed installments.

Payability: Leveraging the Instant Advance, a seller could secure $20,000 to enhance their marketing efforts across various channels, using daily sales to repay the advance.

Conclusion

Both Shopify Capital and Payability offer compelling financing solutions for eCommerce businesses. Shopify Capital is ideal for merchants deeply integrated into the Shopify ecosystem looking for seamless, straightforward funding options. In contrast, Payability provides broader applicability and flexibility, catering to sellers across multiple platforms.

Ultimately, the best choice depends on your specific business needs, platform diversity, and preferred repayment terms. By understanding your options and how each service aligns with your business goals, you can make an informed decision that supports growth and financial health.

FAQ

1. Can I use both Shopify Capital and Payability simultaneously?

Yes, you can use both services concurrently to maximize funding.

2. Do these services perform credit checks?

No, both Shopify Capital and Payability do not require credit checks. They base approvals on sales performance.

3. What happens if my sales drop?

Shopify Capital: Repayments for merchant cash advances are automatically adjusted based on sales. Payability: Instant Advance repayments vary with sales, while Instant Access provides consistent daily payouts.

4. How fast can I receive funding?

Shopify Capital: Typically within 2 business days. Payability: Often within 24 hours.

Choosing the right financing can propel your eCommerce business to new heights, ensuring you have the capital needed for growth and stability. Evaluate your options carefully to select the best fit for your unique needs.