Shopify Capital merchant cash advance for merchants in the United Kingdom

In the United Kingdom, Shopify Capital offers merchant cash advances. This type of funding involves selling a portion of your future sales, referred to as receivables. Shopify provides merchant cash advances in the United Kingdom through our partner YouLend under the receivables purchase agreement. If your application for funding is accepted, then Shopify provides you with a lump sum of money for a fixed fee. This lump sum is known as the purchase price, and the fixed fee is known as the purchase percentage.

Under the receivables purchase agreement, you remit a percentage of your daily sales, known as the purchase percentage, until the total amount, known as the termination amount, is remitted. The termination amount and the remittance rate depend on your risk profile.

For example, Shopify Capital through its partner, YouLend might purchase £5,000 GBP of purchased receivables for 5,650 GBP remitted from your store's daily sales. You receive £5,000 GBP into your business bank account, and Shopify Capital receives 10% of your store's gross daily sales until the total 5,650 GBP is remitted. You have the option to remit all or some of the remaining balance in a single lump sum. This is considered a repurchase of the receivables under your agreement.

There is no deadline for remitting the total to Shopify Capital. The daily remittance amount in GBP is determined by your store's daily sales, because the remittance rate is a percentage of your store's daily sales. The remittance amount is automatically debited from your business bank account.

If your remittances are paused or fail, then you may be in default of your merchant cash advance agreement.

Apply for a Shopify Capital merchant cash advance (United Kingdom)

If you're eligible to apply for a merchant cash advance (known as a purchase of receivables in the United Kingdom), then you can view your funding options and request a merchant cash advance directly on the Finance page of your Shopify admin. Funding isn’t guaranteed, and an offer to apply for funding might expire at any time.

You can choose from 3 funding options. The terms of each option include the amount received, the total to remit that Shopify Capital will buy, and the remittance rate that is the percentage of your daily sales that will be deducted and remitted to Shopify Capital

After you apply for a merchant cash advance, your request is reviewed within 1-3 business days, but it might take longer in some cases. If your request is approved, then your merchant cash advance is transferred to your business bank account.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital and then click Offers.

3. Review the terms of the available funding options, and then click Apply now under the option that you want to apply to.

4. Verify your identity and business details for Shopify Capital.

5. In the Review and accept terms dialog, click Receivables Purchase Agreement, and then review the terms of the agreement carefully before submitting your application.

6. Select Change my payments provider to Shopify Payments to change your remittance provider to Shopify Payments.

7. Click Accept terms. You might be asked to verify your details for Shopify Capital, even if you have previously received funding through Shopify Capital.

After you receive the merchant cash advance, the daily remittance based on your store's daily sales begins within 2 business days.

Updating your bank account for Shopify Payments payouts (United Kingdom)

If you want to change your bank account for Shopify Payments payouts and your remittances after you accept an amount, then you need to contact Shopify Support to complete a new direct debit agreement.

Requesting another Shopify Capital merchant cash advance (United Kingdom)

You may qualify for a second merchant cash advance before you have remitted an existing merchant cash advance in full. If you're eligible for a second merchant cash advance, then new funding options are displayed on the Finance page in your Shopify admin.

Keeping track of your merchant cash advance remittances

After you receive your merchant cash advance, you can track the remaining balance of your total to remit (the termination amount), from the Finance page of your Shopify admin under Accounts > Capital.

From the Capital page, you can view the following remittance information:

• the remaining balance
• the amount that you've remitted
• the percentage of the total that is remitted
• the transfer history

You can view each day's sales revenue in the Total sales column of the transfer history section. You can view how much is remitted to Shopify Capital in the Amount column.

Download your balance letter

You can download a balance letter from the Finance page of your Shopify admin. You can use the balance letter to show your bank that you no longer have any financial obligation or what your current balance is.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital.

3. Click View all transactions.

4. Click Export, and then click Balance letter.

5. Save the balance letter to your device.

Remit the remaining balance of your merchant cash advance (United Kingdom)

You have the option to remit any amount over £1 GBP against your advance, or the full remaining balance in one lump sum. The remittance is debited from the same business bank account that's tied to your Shopify account. The cost of this financing, known as the termination amount, isn't reduced when you remit your entire balance, and remittance doesn't guarantee eligibility for additional financing.

When you make a lump sum remittance, it might take up to 3 business days to process the lump sum remittance. You'll receive an email confirming that the lump sum remittance has been processed and is now complete. However, your regular remittances will still be processed as usual during this time.

Note

Under your agreement, this is a repurchase of your receivables. Even if you remit your entire balance, the purchase price remains the same. Making a remittance doesn't automatically qualify you for more financing.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital.

3. Click Make a payment.

4. Choose the amount that you want to remit:

   • To make a manual remittance, enter the amount in the Custom amount field.
   • To remit the full amount, click Full remaining balance.

5. Click Next step and review the amount to be remitted.

6. If you're sure that you want to continue with the remittance, then check the authorization box and click Make a payment.

Calculating merchant cash advance remittance (United Kingdom)

Every day that you make sales, a fixed percentage (the remittance rate also known as the purchased percentage in the Receivables Purchase Agreement) is applied to the gross amount of your sales to calculate your remittance (the amount payable under the Receivables Purchase Agreement). On days with higher sales, your remittance will be larger. On days with lower sales, your remittance will be smaller.

Sales revenue includes all completed orders, regardless of where they came from, how they were remitted, or if they were later refunded or canceled. When calculating remittance, the only orders that aren't included in your store's daily sales revenue are test orders that are placed when Shopify Payments is in test mode. If an order was placed without test mode activated, then it will be included in your store's sales revenue for the day's remittance calculation.

You'll continue to make these remittances until Shopify Capital has received the full agreed-upon amount of your future sales revenue, known as the termination amount. Each remittance is automatically debited from your bank account and remitted to Shopify in accordance with your Pre-Authorized Debit Agreement. If there are no sales on a particular day, then no remittance will be processed for that day.

Example: 5-day remittance schedule for £15,000 GBP future sales revenue with 10% remittance rate to Shopify Capital

Example of remittances

Day	Daily revenue	Shopify Capital's share	Balance
1	100 GBP	10 GBP	14,990 GBP
2	150 GBP	15 GBP	14,975 GBP
3	125 GBP	12.50 GBP	14,962.50 GBP
4	175 GBP	17.50 GBP	14,945 GBP
5	105 GBP	10.50 GBP	14,934.50 GBP