Tout ce que vous devez savoir sur Shopify Capital Remittance

Table of Contents

1. Introduction
2. What is Shopify Capital?
3. How Shopify Capital Merchant Cash Advances Work
4. Tracking and Managing Your Remittances
5. Pros and Cons of Shopify Capital
6. Tips for Effective Management
7. Common Issues and Resolutions
8. Frequently Asked Questions (FAQs)
9. Conclusion

Introduction

Imagine needing a quick infusion of cash to fuel your business growth—perhaps for new inventory, marketing, or hiring additional staff. Shopify Capital offers a seamless way for businesses to access funds without the red tape often associated with traditional loans. But how does Shopify Capital remittance work, and what should you know before diving in? This post will unravel the complexities of Shopify Capital remittance, offering clarity and actionable insights.

By the end of this article, you'll understand what Shopify Capital is, how its remittance process works, the implications for your business, and tips to manage it effectively. If you’ve ever wondered how you can leverage Shopify Capital to grow your business, or you're currently navigating its repayment process, this guide is for you.

What is Shopify Capital?

Shopify Capital is a financing program that provides merchant cash advances and loans to eligible Shopify merchants. This financing option is available to businesses in the United States, Canada, the United Kingdom, and Australia. Shopify Capital can be a lifeline for eCommerce businesses, offering funds for various purposes without the stringent requirements typically associated with bank loans.

Types of Financing Options

1. Merchant Cash Advances: This involves Shopify purchasing a percentage of future sales in exchange for an upfront sum. You repay the advance with a fixed percentage of daily sales.

2. Term Loans: These are fixed-amount loans with a set repayment schedule and interest rate.

The focus of this post is on merchant cash advances and the ensuing remittance process.

How Shopify Capital Merchant Cash Advances Work

A merchant cash advance from Shopify Capital is essentially the sale of future receivables. Here’s a detailed breakdown of how it works:

Applying for a Merchant Cash Advance

When eligible, you'll receive an offer to apply for a merchant cash advance directly through your Shopify admin. You can choose from multiple funding options, each specifying:

• Amount Advanced: The lump sum you receive.
• Total to Remit: The amount you need to repay, including fees.
• Remittance Rate: The percentage of daily sales remitted to Shopify.

Once you choose an option and your application is approved, funds are transferred to your business bank account within 2-5 business days.

Repayment Process

Repayment starts almost immediately and is highly automated. Here's how it works:

1. Daily Remittance: A fixed percentage of your daily sales (remittance rate) is automatically debited from your account.
2. Variable Payments: Payments fluctuate based on your daily sales—high sales result in larger remittances, and low sales lead to smaller ones.
3. No Deadline: There is no fixed deadline to remit the total amount; repayments continue until the total owed is fully repaid.

Example

Suppose Shopify Capital advances you $5,000 with a total to remit of $5,650 and a remittance rate of 10%. If your daily sales are $500, then $50 (10% of $500) is remitted to Shopify. This continues until the full $5,650 is repaid.

Tracking and Managing Your Remittances

Once you’ve received a merchant cash advance, keeping tabs on repayments is crucial for smooth business operations.

Monitoring Remittances

You can track your daily remittance amounts by going to the Capital section in your Shopify admin, where the following data is available:

• Daily Sales Revenue: Total sales recorded each day.
• Remittance Amounts: How much is being remitted to Shopify daily.

Downloading Balance Letters

You can download a balance letter to verify your current balance or to show your bank that you have no outstanding financial obligations.

Manual Remittance Option

You have the option to remit any remaining balance in one lump sum. This can be advantageous if you want to eliminate your debt faster to perhaps qualify for additional financing.

Special Considerations

• Failed Payments: Ensure adequate funds in the account linked to Shopify Payments to avoid failed remittances.
• Changing Payout Accounts: Contact Shopify Support if you need to change the bank account connected to your Shopify Payments and remittances.

Pros and Cons of Shopify Capital

Advantages

1. Quick Access to Funds: Receive funds without the long approval processes of traditional loans.
2. Flexible Repayment: Payments adjust based on sales performance, alleviating pressure during low sales periods.
3. No Collateral Needed: Unlike traditional loans, no physical assets are required as collateral.

Disadvantages

1. Costs: The fixed fee can be high compared to conventional loans.
2. Sales Dependency: Your repayments are tied to your sales, which could be a challenge for businesses with cyclical sales patterns.
3. Automatic Debits: Lack of control over daily debits can complicate cash flow management.

Tips for Effective Management

Managing Shopify Capital effectively can ensure it remains a benefit rather than a burden.

Cash Flow Forecasting

Regularly review your cash flow forecasts to ensure that daily remittances won’t impact your operational liquidity.

Sales Monitoring

Keep a pulse on sales performance and identify trends that might affect your remittance amounts. Adjust marketing strategies or promotions during slow periods to maintain a steady cash flow.

Use Advances Wisely

Spend the advance on revenue-generating activities like inventory expansion or marketing. This ensures that the advance contributes to generating the sales needed to repay it.

Common Issues and Resolutions

Payment Failures

If you experience failed remittances:

• Ensure sufficient funds in the designated account.
• Check if the associated bank account has been changed recently.
• Contact Shopify Support for troubleshooting.

Eligibility for Additional Advances

You may become eligible for additional advances after repaying a significant portion of the initial advance—typically at least 65%. This offers flexibility for ongoing capital needs.

Frequently Asked Questions (FAQs)

Q: What happens if I have no sales on a given day?
A: No remittance will be debited if there are no sales on a particular day.

Q: Can I repay the total amount in one lump sum?
A: Yes, you have the option to remit the full remaining balance in a lump sum.

Q: How do I track my remaining balance?
A: You can track your balance in the Capital section of your Shopify admin.

Q: Are there any penalties for early repayment?
A: No, there are no penalties for early repayment, but the total amount to remit does not decrease with early repayment.

Q: What should I do if my remittances are failing despite having funds?
A: Ensure there’s no issue with the linked bank account, and contact Shopify Support if the problem persists.

Conclusion

Shopify Capital offers a streamlined way to access funds, vital for scaling and maintaining your business. Understanding its remittance process, pros, cons, and effective management strategies can help you leverage this resource to its fullest potential. Always keep an eye on your sales and cash flow to ensure smooth remittances and avoid disruptions. With this guide, you’re well-equipped to navigate Shopify Capital remittances with confidence.