Eligibility for funding through Shopify Line of Credit
If your store is eligible to apply for funding through Shopify Line of Credit, then you will receive an email from Shopify and a message on the Home page of your Shopify admin. If you don't receive an email or message from Shopify, then your store is currently ineligible to apply for funding through Shopify Line of Credit. If you do later become eligible, then you're notified by email and a notification.
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Shopify Line of Credit underwriting process
The Shopify Line of Credit underwriting process consists of two stages, pre-qualification and application review.
Stage 1: Pre-qualification
During the first stage, Shopify identifies your store as eligible to apply for Shopify Line of Credit. This determination is based on a number of factors such as your sales history within Shopify, your engagement with the Shopify platform, and other relevant criteria. A personal credit check isn't required when applying for financing through Shopify Line of Credit, but financial documents are required to be submitted as part of your application.
Stage 2: Application review
During the second stage, the Shopify Lending team reviews your store's application, including the financial documents provided, and confirms whether your store is approved for the credit limit and Annual Percentage Rate (APR) requested. This review takes into account various factors, including your sales, payment disputes and chargebacks, your engagement with the Shopify platform and your store, customer engagement, and failed billing attempts.
Revision of credit request
During the second stage of the underwriting process, after you submit an application for funding, if the Shopify Lending team determines that your store isn't eligible for the credit limit and/or APR requested, then they might revise the pre-qualified offer to reflect what your store is eligible to receive.
Refusal of credit request
During the second stage of the underwriting process, if the Shopify Lending team determines that your store isn't eligible for funding at this time, then your funding request is declined. However, if your store becomes eligible in the future, then you will be invited to view available options to apply for funding again.
Shopify Line of Credit and Shopify Payments
Shopify Line of Credit is available to eligible merchants who use Shopify Payments. If you use Shopify Payments and meet the eligibility criteria, then you might receive an offer to apply for Shopify Line of Credit. When your business receives funding through Shopify Line of Credit, there are certain considerations regarding your Shopify Payments account that you need to keep in mind.
Deactivating Shopify Payments
If you're using Shopify Payments and you have an ongoing funding agreement through Shopify Line of Credit, then you can't deactivate Shopify Payments until the total amount owed is fully repaid. Attempting to deactivate Shopify Payments while in this agreement results in an Unable to deactivate Shopify Payments message. After the total amount owed is repaid, you can proceed with deactivating Shopify Payments by asking Shopify Support to close your credit account so that you can deactivate Shopify Payments.
Changing your Shopify Payments bank account
You can change the business bank account associated with your Shopify Payments account in the Shopify admin under Settings > Payment providers. This change has a number of effects, including where your Shopify Payments payouts are deposited, where withdrawals you make under your Shopify Line of Credit are deposited, and where payments towards your outstanding Shopify Line of Credit balance are deducted from. The payments and payouts can't occur from separate accounts.
If you do change the business bank account associated with your Shopify Payments account, payments already scheduled are still debited using the old business bank account information, as they have already been submitted for transfer. However, new payments generated after changing bank accounts are drawn from the new account.