Jak korzystać z Shopify Capital

Table of Contents

1. Introduction
2. What is Shopify Capital?
3. Eligibility for Shopify Capital
4. Applying for Shopify Capital
5. Understanding Repayment Terms
6. Benefits of Using Shopify Capital
7. Real-Life Applications of Shopify Capital
8. Potential Challenges and Solutions
9. Renewing Your Capital
10. FAQs
11. Conclusion

Introduction

Imagine having the ability to easily access the capital needed to propel your online business forward. Whether it's for restocking inventory, ramping up your marketing, or expanding your team's talent, having the necessary funds can be a game-changer. This is where Shopify Capital comes in.

Shopify Capital offers a unique funding solution tailored for Shopify merchants, offering loans and merchant cash advances. By the end of this blog post, you'll have a comprehensive understanding of how to use Shopify Capital effectively to grow your business. We will discuss the types of funding available, eligibility criteria, the application process, repayment methods, and more.

Ready to discover how Shopify Capital can be the financial boost your business needs? Let's dive in.

What is Shopify Capital?

Shopify Capital is a financing program designed specifically for Shopify merchants. It offers two main types of funding options:

• Loans: Fixed-term loans that require repayment of the borrowed principal plus a fixed borrowing cost.
• Merchant Cash Advances: A lump sum of cash in exchange for a percentage of future sales until the advance and fee are paid off.

These options provide flexibility and quick access to funds, making it easier for merchants to manage cash flow, invest in growth opportunities, and handle unforeseen expenses.

Eligibility for Shopify Capital

Eligibility for Shopify Capital is primarily determined by Shopify's underwriting model, which uses an array of data points including sales history, Shopify platform interactions, and customer metrics. Generally, Shopify will reach out to you via email or display a notification in your Shopify admin dashboard if you qualify. Shopify Capital is available to merchants in the United States, Canada, the United Kingdom, and Australia.

Applying for Shopify Capital

Steps in the Application:

1. Check Eligibility: Visit your Shopify admin dashboard to see if you have any funding offers available.
2. Select Funding Option: Review the terms, which include the loan amount, total repayment amount, and daily repayment or remittance rate. Choose the option that best fits your needs.
3. Submit Application: Once you select a funding option, submit your application. It generally takes 1-3 business days for Shopify to review and approve your request.
4. Receive Funds: Upon approval, the funds will be deposited into your business bank account within 2-5 business days.

Things to Keep in Mind:

• The approval process may take longer if additional information is required.
• Funding offers may expire, so timely action is recommended.

Understanding Repayment Terms

Loan Repayment

Shopify loans are repaid through a percentage of your daily sales. Here’s how it works:

• Daily Percentage: A fixed percentage of your store’s daily sales is deducted to repay the loan.
• Total Payment Amount: This is the loan amount plus the cost of borrowing.
• Minimum Repayments: Effective February 1, 2024, new policies will require minimum repayments of 30% of the loan at the 6-month mark and 60% at the 12-month mark.

Merchant Cash Advances

For merchant cash advances, a fixed percentage of your daily sales (known as the remittance rate) is deducted until the advance amount plus a fixed fee is paid off.

• No Fixed Term: There isn't a set deadline for paying off the advance.
• Adaptive Repayments: The amount repaid varies with daily sales volume—higher sales lead to higher repayments and vice versa.

Tracking Repayments

From the Shopify admin dashboard, you can track your repayment status, view daily sales and remittance amounts, and even repay the remaining balance in one lump sum if desired.

Benefits of Using Shopify Capital

Using Shopify Capital comes with several advantages:

1. Quick Access to Funds: Funds are typically available within days, not weeks.
2. No Equity Loss: Shopify doesn’t take any equity in your business.
3. Automatic Repayments: The daily sales percentage system makes repayments straightforward and adaptable to your business’s performance.
4. Hassle-Free Process: Minimal paperwork and no hard credit checks make the process seamless.

Real-Life Applications of Shopify Capital

Inventory Management

Having enough inventory to meet customer demand is crucial. For instance, using Shopify Capital to purchase additional stock can help avoid stockouts and unhappy customers, particularly during peak seasons like holidays.

Marketing Campaigns

Investing in paid marketing efforts such as Facebook Ads, Google AdWords, or influencer collaborations can significantly boost your sales. With Shopify Capital, you can allocate funds to these marketing channels, driving traffic and revenue growth.

Expanding Your Team

Hiring new employees or contractors can help you scale faster. Whether you need a marketing specialist, a customer service rep, or a web developer, Shopify Capital can provide the funds necessary to bring valuable expertise into your business.

Potential Challenges and Solutions

Cash Flow Management

Since repayments are tied to daily sales, it’s essential to maintain a healthy sales flow to ensure smooth repayments. Consider setting aside additional funds for unexpected drops in sales.

Understanding Terms and Conditions

Make sure to thoroughly read and understand all terms and conditions associated with Shopify Capital. For example, being aware of the minimum payment thresholds and default scenarios can help prevent any unforeseen consequences.

Renewing Your Capital

Did you know you can apply for additional funding even if you haven't fully repaid your current funding? If you’ve repaid at least 65% of an active loan, new funding options become available. This allows for continuous access to capital, helping you maintain momentum in your business growth.

FAQs

Who is eligible for Shopify Capital?

Shopify Capital is available to select merchants in the United States, Canada, the United Kingdom, and Australia. Eligibility is automatically determined by Shopify's underwriting model.

How do I apply for Shopify Capital?

Log in to your Shopify admin dashboard. If eligible, you will see available funding options on the Capital page. Select a funding option and submit your application.

How are repayments made?

Repayments are made through a fixed percentage of your daily sales. For loans, this is known as the daily payment percentage. For merchant cash advances, it is known as the remittance rate.

When will I receive the funds?

Once approved, funds are generally deposited into your business bank account within 2-5 business days.

Can I repay my loan early?

Yes, you can repay the entire remaining balance of your loan or merchant cash advance in one lump sum at any time.

Conclusion

Shopify Capital offers an accessible, flexible, and efficient way to secure the funding your business needs to grow. With straightforward application and repayment processes, it eliminates many of the traditional barriers to obtaining capital.

Whether you're looking to expand your inventory, ramp up your marketing efforts, or hire new talent, Shopify Capital can provide the financial boost you need. Make sure to understand the terms and manage your cash flow effectively to make the most out of this valuable resource.