Getting started with Shopify Capital – Eligibility, funding options, and application process
Shopify Capital offers are provided to eligible merchants. Eligibility is automatically evaluated based on a variety of factors including sales, disputes, customer interactions, the time you’ve been a Shopify platform user, and compliance with Shopify’s Terms of Service. Eligibility is continually evaluated and subject to change.
For eligible merchants, Shopify Capital provides offers for funding that you can use towards your business, such as ensuring that your best selling products are in stock, you're optimizing for SEO, or you're exploring new ways to foster your team’s professional growth.
You can check whether your business is eligible for funding from the Finance page of your Shopify admin. You need to be a store owner to apply for funding through Shopify Capital. If your store is eligible to apply for funding through Shopify Capital, then you’ll receive an email from Shopify Capital and a message on the Finance page of your Shopify admin. If you don't receive an email or message from Shopify Capital, then your store is currently ineligible to apply for funding through Shopify Capital. Review the various requirements for eligible Shopify Capital stores.
On this page
- Shopify Capital eligibility requirements
- Shopify Capital availability and funding options
- Application process for Shopify Capital
- Revision of offer
- Denial of funding request
- Applying for Shopify Credit and its impact on Shopify Capital
- Shopify Payments and third-party provider usage
- Shopify Capital and Shopify Payments
Shopify Capital eligibility requirements
Your eligibility for Shopify Capital is based on several factors that determine the health of your business. If you don't receive an offer, then your store is currently ineligible to apply for funding through Shopify Capital. If you become eligible, then you'll receive notifications on the Finance page of your Shopify admin and by email. Shopify routinely assesses your eligibility for offers, and both your eligibility and the offer size are subject to change.
Business entities operating as trusts and partnerships aren't supported at this time. If the information you enter is associated with a Trust or Partnership, then your application won’t be accepted.
The following key criteria are considered to determine the eligibility of your store, as well as any other stores associated with your account, for a funding offer from Shopify Capital:
Activity status
Your store must be actively subscribed to a Shopify plan and operational for at least three months or have had its first sale more than three months ago.
Customer engagement
The level of interaction between customers and your store is used in assessing the health of your business. Both the number of customers and their engagement levels with your store are factors in determining your eligibility for offers.
Compliance with the Shopify TOS
Shopify Capital is unavailable to stores that may violate the Shopify Terms of Service (TOS) or any other Shopify Agreements, including but not limited to Shopify Payments and Shopify Credit. Refer to Shopify's legal resources for more information.
Duration of your Shopify store tenure
The length of time that your store has been active on the Shopify platform is a factor in determining your eligibility for Shopify Capital.
Engagement with the Shopify platform
Your active use and engagement with the Shopify platform are used to determine the health and growth potential of your business.
Failed debits
Your payment history influences your eligibility, including the number of failed debits for Shopify Services and your track record of repaying funds or remittances for financial services such as Shopify Credit. For instance, a failed authorized debit intended to repay your statement balance on Shopify Credit may be a factor that affects your eligibility for Shopify Capital.
Payment providers and payout cadence
Shopify Capital is available to eligible merchants who either use Shopify Payments or approved third-party payment providers. Eligibility allows you to potentially receive an offer to apply for Shopify Capital. However, in certain locations, activating Shopify Payments may be a mandatory requirement to qualify for this funding. Additionally, the frequency and timing of your payouts, whether from Shopify Payments or third-party providers, can influence your eligibility for Shopify Capital.
Prohibited products and services
Shopify Capital is unavailable to stores selling prohibited products and services. For example, stores in certain industries, including those dealing with cannabis and drug paraphernalia—regardless of their legal status in your jurisdiction—are ineligible for Shopify Capital, even if they’re not restricted under the Shopify Terms of Service (TOS).
Reserves
A reserve is a temporary hold on a portion, in some cases a full amount, of transactions processed through Shopify Payments for a specified period. Reserves serve as a protective measure against potential losses that might arise from processing activities, such as chargebacks and refund volumes. If you have a reserve on your account, then your eligibility for Shopify Capital may be affected. Learn more about Reserves in Shopify Payments.
Returns, chargeback, and disputes
A payment dispute occurs when your customers dispute a charge and reach out to the bank that issued their card or credentials to reverse it. Eligibility is determined by factors including the number of chargebacks and disputes within specific periods, and the frequency of returns. Learn more about chargebacks and inquiries and how to manage them.
Sales performance
Your eligibility for funding and the size of the offer you receive are primarily based on your sales performance on Shopify’s platform. Key factors include, but aren’t limited to, sales volume, the frequency of sales days, the total number of orders, and the number of orders successfully shipped.
Shopify Exchange
Stores that are listed or have recently been sold on Shopify Exchange are ineligible for Shopify Capital.
Store currency requirements
To be eligible, your store must be located in one of the following countries: Australia, Canada, the United Kingdom, or the United States. Additionally, the currency settings must align with the following specifications:
- If your store is in Australia, then the currency must be set to AUD.
- If your store is in Canada, then the currency must be set to USD or CAD.
- If your store is in the United Kingdom, then the currency must be set to GBP.
- If your store is in the United States, then the currency must be set to USD.
Your bank account must also be in the country where your business is located.
Your payment history with Shopify
Your record of timely payments for Shopify's services, including Shopify Credit and other financial offerings, is a factor in assessing your eligibility for Shopify Capital.
Shopify Capital availability and funding options
Funding through Shopify Capital is available in Australia, Canada, the United Kingdom, and the United States to eligible merchants. Funding options are based on your business location. To be eligible for Capital in a country, your principal place of business must be within the country, and your bank account must be located in the country.
Review the following table to learn more about the countries where Shopify Capital is available and the corresponding funding options:
| Business location | Available funding options |
|---|---|
| Australia | Loans |
| Canada | Merchant cash advance |
| United Kingdom | Merchant cash advance |
| United States | Loans |
Application process for Shopify Capital
If your store is in a country supported by Shopify Capital, then it’ll undergo regular evaluations to determine eligibility. Eligible stores will receive one or more funding offers through the Shopify admin.
Receiving an offer doesn’t guarantee funding; you must submit an application to proceed. The application process varies by country and includes verifying the identities of beneficial owners. For some offers, additional financial documentation may be required. Before submitting your application, you must review and agree to the funding terms.
Revision of offer
After you submit an application for funding, your application is assessed. Based on the review of your application, Shopify Capital may determine that your store isn’t eligible to receive the amount of funding requested and may readjust the pre-qualified amount to a lower amount. A lower amount may also result in a different repayment rate. If your funding amount is revised, then you’ll receive a new offer in your Shopify admin, and you’ll need to apply for the revised offer.
Denial of funding request
After you’ve submitted an application for funding, an underwriting review is conducted by Shopify Capital to determine if your store is eligible for funding. If any factors reviewed have changed, then your funding request may be declined. If your store becomes eligible in the future, then you'll be invited to view available options to apply for funding again. Learn more about factors considered in reviewing your eligibility for Shopify Capital.
Applying for Shopify Credit and its impact on Shopify Capital
If you apply for Shopify Credit or are currently using Shopify Credit, then you may also be eligible for Shopify Capital offers. However, if you’re currently using Shopify Capital or have an application in progress, then you’re ineligible to apply for Shopify Credit. Any existing Shopify Capital offers will be revoked upon your application for Shopify Credit. You’ll need to wait for a new offer from Shopify Capital before you can apply for funding.
Factors influencing eligibility and offers
Eligibility and offers for both Shopify Capital and Shopify Credit are based on various factors, including your business performance. These criteria are subject to change and eligibility is never guaranteed.
Consequences of delinquency on Shopify Credit
If your Shopify Credit account becomes delinquent, you fail to pay your statement balance when due, or are otherwise in violation of the Shopify Credit Issuing Bank Terms or the Shopify Credit Program Terms, then you won't be eligible for Shopify Capital offers. Furthermore, any active Shopify Capital funding will become immediately due and payable if you’re in violation of the Shopify Credit Issuing Bank Terms or the Shopify Credit Program Terms.
Shopify Payments and third-party provider usage
If you’re using Shopify Payments, then switching your primary payment gateway to a third-party payment provider is restricted until you’ve repaid the funding received from Shopify Capital. The options for managing your Shopify Payments account may become restricted when your business has received funding from Shopify Capital.
If you use a third-party payment provider, then you can change your gateway provider at any time.
If you use Shopify Payments or a third-party payment provider, then you can always change your banking information by clicking Finance > Capital > Change bank account in your Shopify admin.
Shopify Capital and Shopify Payments
The options for managing your Shopify Payments account change when your business has received funding from Shopify Capital.
Deactivating Shopify Payments while receiving funding from Shopify Capital
If you're using Shopify Payments when you receive funding through Shopify Capital, then you can't deactivate Shopify Payments until the total amount owed is fully repaid. If you try to deactivate Shopify Payments while you're in an ongoing funding agreement with Shopify Capital, then an Unable to deactivate Shopify Payments message is displayed. When the total amount owed is fully repaid, then you can deactivate Shopify Payments.
Updating your bank account for Shopify Payments
Depending on your location, you may change the business bank account linked to your Shopify Payments payout account in your Shopify admin by completing the steps to edit your bank account information. This adjustment affects where your Shopify Payments payouts are deposited and where your Shopify Capital repayments are withdrawn from. Repayments and payouts must occur from the same account, and the bank account must be in the country your business is located.
Scheduled repayments will continue to be debited from your previous business bank account as they're already in process. Any new repayments generated after you update your bank account information will be debited from the new account. The timing for debits from the updated account may vary depending on your geographic location. Typically, debits are processed within 2 business days following the initiation of the transaction. However, local regulations could modify this timeline. Additionally, authorization for automatic debits from the new bank account may be necessary, depending on your location.
Shopify Capital merchant cash advance for merchants in Canada
If you're a merchant in Canada and you want to update your bank account for Shopify Payments payouts and remittances after accepting a merchant cash advance, then you must complete a new pre-authorized debit agreement. This can be done in the Finance page of your Shopify admin.
You must confirm that the country and currency of the updated bank account for Shopify Payments and remittances matches the country and currency of the merchant cash advance before you submit your new pre-authorized debit agreement.
Shopify Capital merchant cash advance for merchants in the United Kingdom
If you're a merchant in the United Kingdom and you want to update your bank account for Shopify Payments payouts and remittances after accepting a merchant cash advance, then you need to contact Shopify Support to complete a new direct debit agreement. The country and currency of the updated bank account for Shopify Payments and remittances must match the country and currency of the merchant cash advance.
Shopify Capital loans for merchants in Australia and the United States
To update your bank account details for receiving Shopify Payments payouts, in your Shopify admin, go to Settings > Payments. If you accepted Capital funding and used a third party payments provider in the United States, then you can change your bank account information directly through the Finance page of your Shopify admin, where your outstanding balance is displayed.