Shopify Capital glossary of terms

Definition of Shopify Capital terms
TermDefinition
Amount advancedThe funds you receive from a Shopify Capital merchant cash advance.
CollateralCollateral is the group of assets that you pledge as security for your Shopify Capital loan. Collateral includes your business assets, such as the business bank account linked to the Shopify admin and any other business accounts held by you. Collateral doesn't include any of your personal property or assets.
Daily payment percentageThe percentage of your daily sales that you repay to Shopify Capital until the total payment amount is repaid.
DeliverTo send funds.
Factor or factor rate The number that the amount received multiplies by to determine the total to remit.
Fixed borrowing costThe fee for obtaining a Shopify Capital loan, also known as the cost of funds.
FundingAccess to capital.
Gross daily salesThe total sales amount on a particular day. This includes taxes and shipping.
Loan amountThe funds you receive from a Shopify Capital loan.
ReceivablesA purchase of your future sales.
Remaining balanceThe amount of the total to remit that is yet to be remitted to Shopify Capital.
RemitTo deliver money to apply against the total to remit.
RemittanceMoney that is delivered to apply against the total to remit.
Remittance rate or daily remittance percentage The percentage of your daily sales revenue that will be remitted to Shopify Capital until the total to remit has been remitted.
Security interestShopify’s loan agreements include a security interest which is a legal right to business collateral in the event of default. A UCC-1 financing statement may be filed in connection with your loan based on several factors, including the size of your loan, and facts and circumstances about your business.
Total payment amountThe loan amount plus the fixed borrowing cost of a Shopify Capital loan. The total amount that must be repaid.
Total to remitThe amount of future sales revenue that Shopify Capital buys. This is calculated by multiplying the amount received by the factor rate.
UCC-1 financing statementA publicly available record filed by a lender that provides notice of the lender’s security interest in certain business collateral of a debtor. The UCC-1 establishes a priority right to the collateral that was used to secure the loan, and gives Shopify, a right to claim that collateral as repayment in the event of default. UCC-1 financing statements are filed with the secretary of state where a business is organized or an individual resides. Financing statements may be removed from the public record once a loan is paid back in full.
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