Shopify Line of Credit glossary of terms

Shopify Line of Credit is only available in the United States. All financing through Shopify Lending including Line of Credit is issued by WebBank in the United States.

Update on Shopify Line of Credit program

As part of our ongoing efforts to optimize the financial services we offer, Shopify is transitioning away from its Shopify Line of Credit offering. We are no longer accepting new applications for this program. Instead, we invite our merchants to explore Shopify Capital financing which remains Shopify’s primary lending solution for fast and flexible funding to support businesses of all sizes.

Key dates and guidelines for existing users

• Continued access for current users: If you currently have an active Shopify Line of Credit, then you will be able to request new withdrawals up until December 31, 2024, at 23:59 PST.
• Closure of new withdrawals: Beginning January 1, 2025, no further withdrawals will be permitted.
• Repayment terms: Existing balances will still need to be repaid following the original 6-month repayment schedule outlined in your loan agreement. This process will be automatically managed through scheduled debits.
• Specific repayment deadlines based on final withdrawal dates:
  • If your last withdrawal is between December 1, 2024, and December 26, 2024, then your repayment schedule will conclude on June 1, 2025.
  • If your last withdrawal is between December 27, 2024, and December 31, 2024, then your repayment schedule will conclude on July 1, 2025.
• Flexible repayment options: You may also opt to make manual repayments at any time to potentially decrease both the total repayment amount and the duration of your loan.

Term	Definition
Annual Percentage Rate (APR)	An Annual Percentage Rate or “APR” is the annual cost of borrowing money, expressed as a percentage. It reflects not only the applicable interest rate, but also factors in additional costs that might apply to your loan, such as fees.
Available credit	Your available credit is the amount you have available for you to withdraw through Shopify Line of Credit at any given time. It'll be the difference between your credit limit and your outstanding balance at the time of calculation. Pending payments or pending withdrawals can impact your available credit.
Credit limit	Your credit limit is the maximum amount of credit accessible to you through Shopify Line of Credit at any given time.
Outstanding balance	Your outstanding balance at any given time is the total amount that still needs to be repaid, and includes the amounts you’ve withdrawn but not yet repaid, and the interest you’ve accrued but not yet paid.
Pending payment	A pending payment is a payment towards your outstanding balance (whether automatic or voluntary), that's still being processed and hasn't yet been received. It can take several business days for payments to successfully process.
Pending withdrawal	A pending withdrawal is a withdrawal that has been requested from within your Shopify admin, but not yet received in your connected bank account. Funds from a withdrawal request are typically received within two business days, but may take longer in some cases.
Revolving credit	Revolving credit is a type of credit that allows a borrower to borrow funds, repay, and borrow again, up to a predetermined limit (for example, a credit limit), as long as the credit account remains open and in good standing.