Using Shopify Capital to fund your growth

Shopify Capital is a financing service offered by Shopify that helps entrepreneurs obtain funds to grow their business. Here's how you can use Shopify Capital:

1. Eligibility: To become eligible for the Shopify Capital program, you must first be an active Shopify merchant and have a strong sales history. Shopify uses internal performance data to determine eligibility.
2. Funding Offers: Once you are eligible, Shopify will offer you financing options tailored to your needs. These offers may include cash advances or repayable loans.
3. Offer Acceptance: Choose a financing offer that suits you and accept it from your Shopify dashboard. Specific terms, such as the financed amount and repayment percentage, will be clearly presented to you.
4. Use of Funds: You can use the funds received for various needs such as:
• Purchase of inventory
• Marketing and advertising
• Equipment purchases
• Expansion of your operations
5. Repayment: Repayments are made automatically by deducting a fixed percentage of your daily sales. This percentage was defined at the time of accepting the financing offer.

For example, imagine you own a Shopify agency selling fashion accessories. After a year of relative success, you notice growing demand for a new product line. However, you lack the funds to launch this new range. Shopify Capital offers you €10,000 in financing, which you accept. You use this money to purchase inventory and launch an online marketing campaign. Sales start to increase, and you repay the financing at a fixed percentage of your daily revenue. The automatic repayment cycle alleviates the stress associated with managing monthly payments, allowing you to focus fully on growing your business.

Sources: Shopify Capital, Shopify Capital Guide