Shopify Capital Bankを支払う期間はどれくらいありますか？

Table of Contents

1. Introduction
2. Understanding Shopify Capital
3. Key Terms to Know
4. Calculating Repayments
5. The Repayment Process
6. Special Considerations
7. Examples and Case Studies
8. FAQ Section
9. Conclusion

Introduction

Running an online store comes with a plethora of responsibilities, including inventory management, customer service, and marketing. But perhaps one of the most pressing concerns for many entrepreneurs is managing cash flow. Shopify Capital aims to mitigate this worry by offering financial assistance to Shopify merchants. One common question that arises is: How long do you have to pay Shopify Capital Bank? This blog post will dive deep into the details surrounding Shopify Capital's repayment terms, helping you better understand the time frames and obligations involved.

Understanding Shopify Capital

Shopify Capital offers two types of financial products: merchant cash advances and loans. Both aim to provide Shopify merchants with quick access to capital based on their store’s performance, but they come with differing structures and repayment methods.

Merchant Cash Advance

With a merchant cash advance, Shopify provides you a lump sum of money in exchange for a fixed percentage of your future daily sales until the total owed is repaid. This type of funding is flexible in terms of repayment, as there's no fixed repayment term. Instead, the daily repayment amount fluctuates based on your sales volume.

Loans

Shopify Capital loans, on the other hand, require merchants to repay a total payment amount which includes the loan amount plus a borrowing fee. Repayment is made through a fixed percentage of daily sales, similar to the cash advance, but comes with more structured terms.

Key Terms to Know

• Amount Advanced: The lump sum you receive upfront.
• Total to Remit: Amount Advanced plus the fixed fee.
• Remittance Rate: Percentage of daily sales that go towards paying back Shopify Capital.
• Daily Sales: Gross daily sales, this amount excludes refunds or cancellations.

Calculating Repayments

Repayments are automatically deducted as a fixed percentage of your daily sales until the total amount is met. For instance, if you received a $5,000 advance, the total to remit might be $5,650 with a remittance rate of 10%. Each day, 10% of your sales will be deducted until the full $5,650 is repaid.

No Fixed Deadline

One of the most appealing aspects of Shopify’s merchant cash advances is that there’s no set deadline. The repayment period can vary depending on your sales volume. Higher sales mean faster repayment, while lower sales slow it down. This flexibility makes it more manageable for businesses experiencing seasonal fluctuations.

Loan Specifics

For those who opt for a traditional loan, new policies effective from February 1, 2024, outline that the loan must be repaid within 18 months. Additionally, there are minimum payment thresholds — 30% of the loan amount must be repaid within the first 6 months, and 60% within 12 months. Failure to meet these minimum payments could trigger a default, which may have more severe consequences for your business.

The Repayment Process

Repayments begin automatically within two business days after receiving the funding. The amount deducted each day depends on your daily sales, and is automatically billed from the bank account linked to your Shopify account.

To help you keep track, Shopify provides an easy-to-access dashboard within your admin settings where you can view details of your remittances including remaining balance, daily sales, and amount deducted daily.

Special Considerations

Early Repayment

You can pay off any remaining balance at any time, but it's important to note that this doesn’t reduce the total amount owed. Paying off the balance early will make you eligible for additional financing, but it doesn't provide a discount on the fees.

Account Maintenance

Keep your bank account details updated to avoid any interruptions in the remittance process. Changing the bank linked to your Shopify Capital remittances requires contacting Shopify support to complete a new direct debit agreement.

Issues and Support

Despite the ease of automation, some merchants have faced issues such as locked accounts due to missed notices. It's crucial to keep an eye on your email (including the spam folder) for any communication from Shopify to avoid unexpected complications. If you experience any problems, contacting Shopify’s support team can help in resolving them.

Examples and Case Studies

Consider the example of a merchant who has a total future receivable of $15,000 and a remittance rate of 10%. If the store’s daily sales fluctuate, so will the daily repayment amount. For every $1,000 in daily sales, $100 will be automatically debited and applied towards the owed amount.

Hypothetical Scenario

Imagine you received a $10,000 loan with a total repayable amount of $11,500. If your store generates $5,000 in daily sales with a 10% remittance rate, you would repay $500 a day. In contrast, if you had an exceptionally slow day with only $100 in sales, only $10 would be deducted.

The absence of a fixed repayment deadline for merchant cash advances adds flexibility, while the new loan policies introduce structure, ensuring that progress is made steadily towards full repayment.

FAQ Section

How long do you have to pay Shopify Capital?

For merchant cash advances, there is no fixed deadline for repayment. For loans, effective February 1, 2024, you have up to 18 months to repay the full amount.

Can I repay my Shopify Capital loan early?

Yes, you can repay the remaining balance at any time. However, early repayment does not reduce the total amount owed.

How are the daily repayment amounts calculated?

The daily repayment is a fixed percentage of your daily sales. If there are no sales on a particular day, no repayment will be deducted for that day.

What happens if I change my bank account?

You will need to contact Shopify support to complete a new direct debit agreement to ensure the remittance process continues smoothly.

What if I miss a minimum payment threshold?

Failing to meet the minimum payment thresholds at the 6-month and 12-month marks can result in an event of default, which may have serious consequences as outlined in your loan agreement.

Is there a way to track my repayments?

Yes, you can track your repayments through the Capital page in your Shopify admin, which provides detailed information about daily sales, amounts repaid, and remaining balance.

Can I apply for another loan before paying off the current one?

You may be eligible for another loan after repaying at least 65% of your active loan. New funding options will appear in your Capital page within the Shopify admin.

Conclusion

Shopify Capital can offer much-needed financial flexibility for merchants, whether through merchant cash advances or loans. Each type comes with its own set of terms and repayment structures. The absence of strict deadlines for merchant cash advances can be a relief for business owners, offering a repayment plan that scales with sales performance. Ultimately, understanding these nuances ensures you can make the most informed decision, aiding in the continued success and growth of your online store.