Shopify Capital Anlaşması: Bilmeniz Gereken Her Şey

Table of Contents

1. Introduction
2. What is Shopify Capital?
3. Requesting and Receiving Funding
4. Tracking and Repaying Your Loan or Advance
5. Calculating Repayments and Remittances
6. Considerations for Repayment and Default
7. Requesting Additional Funding
8. Benefits and Drawbacks of Shopify Capital
9. Conclusion
10. Frequently Asked Questions (FAQ)

Introduction

Have you ever found yourself in need of quick capital to grow your online business but unsure of where to turn? If you run your operations on Shopify, you’re in luck. Shopify Capital offers a funding solution tailored to e-commerce merchants, providing a straightforward path to financial support that aligns with your sales performance.

Shopify Capital offers a lifeline to merchants seeking to expand their businesses without the complexities of traditional loans. Understanding the nuances of the Shopify Capital agreement can be crucial for managing your obligations, making the most of the funding, and steering your business towards success.

In this comprehensive guide, you will discover the inner workings of Shopify Capital, including how to request funding, track repayments, and calculate remittances. Whether you are a first-time borrower or considering another round of funding, this post will equip you with the insights needed to navigate the Shopify Capital Agreement confidently.

By the end of this article, you will have a thorough understanding of how Shopify Capital operates, including the risks and benefits, ensuring you can make informed financial decisions for your business.

What is Shopify Capital?

Understanding Shopify Capital

Shopify Capital provides merchants with accessible funding options, distinct from traditional loans and lines of credit. This funding can come in two primary forms: loans and merchant cash advances.

Differences Between Loans and Merchant Cash Advances

• Loans: In a Shopify Capital loan, merchants receive a lump sum (the loan amount) in exchange for a fixed borrowing cost. Repayment is made through a percentage of daily sales until the total payment amount (loan amount plus borrowing cost) is paid off.
• Merchant Cash Advances: This involves Shopify purchasing a set amount of your future sales, known as receivables. You receive a lump sum up front and then remit a portion of your daily sales until the agreed amount (total to remit) is fulfilled.

Requesting and Receiving Funding

Eligibility and Application Process

To apply for Shopify Capital, merchants must navigate to the Capital page within their Shopify admin dashboard. Eligibility criteria may include factors such as sales performance, store age, and overall risk profile.

1. Review Funding Options: Merchants will see tailored funding offers based on their profile.
2. Select a Suitable Option: Each option will have terms including the loan amount, the total payment amount, and the daily repayment or remittance rate.
3. Submit the Application: After choosing the preferred option, fill out the application form. The review process typically takes 1-3 business days.

Receiving Funds

Once approved, the capital is deposited directly into the merchant's bank account. For loans, daily repayments begin within two business days. For merchant cash advances, remittances also begin within two business days based on daily sales.

Tracking and Repaying Your Loan or Advance

Monitoring Repayment

Merchants can track their repayment progress through the Capital page in their Shopify admin dashboard. This section displays:

• Total Sales: Shows your gross daily sales revenue.
• Repayment Amount: Indicates how much of your sales revenue is deducted towards repaying Shopify Capital.

Repaying the Balance

Merchants have the option to make additional payments or repay the remaining balance in a lump sum at any time. Note that prepaying the balance does not reduce the cost of funds or guarantee eligibility for additional financing.

Minimum Payment Requirements (Effective February 1, 2024)

New policies mandate that merchants must meet minimum repayment thresholds—30% of the total loan by the 6-month mark and 60% by the 12-month mark—to prevent default.

Calculating Repayments and Remittances

Daily Sales and Repayments

Repayments are taken as a percentage of your daily sales, ensuring flexibility as repayment amounts adjust with your sales performance.

Example:

For a loan of $5,000 with a repayment rate of 10%:

• Daily sales of $1,000 result in a $100 repayment.
• On days with no sales, no repayment is deducted.

Impact of No Sales Days

On days when sales are zero, no repayment is deducted. This adaptive structure offers an advantage during off-peak seasons or unexpected downtimes.

Considerations for Repayment and Default

Loan Term and Default

Starting February 1, 2024, new Shopify Capital loans must be repaid in full within an 18-month term. Failure to do so will result in default, which could have serious implications for your business.

Events of Default

Missing minimum payment evaluations at the 6-month or 12-month mark or failing to repay the entire loan within the 18-month period may trigger default conditions as outlined in the loan agreement.

Requesting Additional Funding

Eligibility for Subsequent Funding

To qualify for another round of Shopify Capital, merchants usually need to meet specific criteria:

• Repayment of at least 65% of the existing loan or cash advance.
• Adequate sales performance and risk assessment by Shopify.

New funding options will appear on the Capital page once these criteria are satisfied.

Benefits and Drawbacks of Shopify Capital

Pros

• Ease of Access: Quick application and approval process.
• Flexible Repayment: Payments tied to daily sales performance.
• Focused Growth: Capital can be used to invest in growth initiatives without diluting ownership.

Cons

• Cost of Capital: Fixed fees can be higher compared to traditional bank loans.
• Repayment Pressure: Daily repayments can strain cash flow, especially during low-sales periods.
• Default Risks: Stricter repayment terms starting 2024 could increase default risk.

Conclusion

Shopify Capital presents a valuable opportunity for merchants to gain quick access to funds necessary for business growth. By understanding the comprehensive details of the Shopify Capital agreement, merchants can make informed decisions that align with their business goals and financial health.

Navigating the intricacies of loans and merchant cash advances, tracking repayments, and complying with the new repayment rules can empower merchants to capitalize on their funding effectively.

Frequently Asked Questions (FAQ)

1. What is the difference between a Shopify Capital loan and a merchant cash advance?

• Shopify Capital loans are fixed amounts repayable via a percentage of daily sales, while cash advances involve selling a portion of future sales for an upfront lump sum.

2. How do I apply for Shopify Capital?

• Eligible merchants can apply directly through the Capital page in the Shopify admin. Review the funding options and select one that suits your needs.

3. How are repayments calculated?

• Repayments are a percentage of daily sales. On days with higher sales, the repayment amount is larger and vice versa.

4. What happens if I fail to meet the new repayment guidelines?

• Failing to meet the new repayment thresholds or the 18-month maximum term can result in loan default, triggering additional actions as specified in the loan agreement.

5. Can I prepay my Shopify Capital loan?

• Yes, you can repay any remaining balance in a lump sum. However, this does not reduce the fixed cost of funds nor does it guarantee eligibility for further financing.

Understanding and strategically utilizing Shopify Capital can significantly enhance business growth opportunities. Review your financial needs, consider the terms carefully, and make the most of the resources available to you.