Shopify Capital glossary of terms
Term | Definition |
---|---|
Amount advanced | The funds you receive from a Shopify Capital merchant cash advance. |
Collateral | Collateral 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 percentage | The percentage of your daily sales that you repay to Shopify Capital until the total payment amount is repaid. |
Deliver | To send funds. |
Factor or factor rate | The number that the amount received multiplies by to determine the total to remit. |
Fixed borrowing cost | The fee for obtaining a Shopify Capital loan, also known as the cost of funds. |
Funding | Access to capital. |
Gross daily sales | The total sales amount on a particular day. This includes taxes and shipping. |
Loan amount | The funds you receive from a Shopify Capital loan. |
Receivables | A purchase of your future sales. |
Remaining balance | The amount of the total to remit that is yet to be remitted to Shopify Capital. |
Remit | To deliver money to apply against the total to remit. |
Remittance | Money 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 interest | Shopify’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 amount | The loan amount plus the fixed borrowing cost of a Shopify Capital loan. The total amount that must be repaid. |
Total to remit | The amount of future sales revenue that Shopify Capital buys. This is calculated by multiplying the amount received by the factor rate. |
UCC-1 financing statement | A 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. |