Accessing funds from the Shopify Line of Credit

After your application for the Shopify Line of Credit is approved, you can begin withdrawing money. Here's a breakdown of the withdrawal and payment process:

  • Withdrawal and interest accrual: When you withdraw money through Shopify Line of Credit, interest begins to accrue daily on the outstanding balance (beginning on the day that funds are disbursed to you) and applied at the end of each month.
  • Timing of principal and interest charges:
    • If you make a withdrawal before the last five days of a month, then your first principal and interest payment is due at the beginning of the next month. For instance, if you withdraw money on January 10, then your first principal and interest payment is due on February 1.
    • If you make a withdrawal in the last five days of a month, then your payment on the first of the following month only consists of accrued interest. For example, if you withdraw money on January 28, which is within the last five days of January, then on February 1, you will only pay interest for the days that you had an outstanding balance in January. Your first principal payment will be made March 1, along with any interest accrued in February.

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.

Withdraw funds

You can request a withdrawal of any amount at any time, up to your credit limit. Funds from a withdrawal request are typically received within two business days, but may take longer in some cases.

Steps:

  1. From your Shopify admin, go to Finances > Line of Credit.
  2. Click Withdraw funds.
  3. In the Withdraw funds dialog, in the Amount field, enter the specific amount that you want to withdraw from your Shopify Line of Credit.
  4. After you enter the required details, click Next.
  5. In the Review and confirm withdrawal section, carefully review the following information:
    • New outstanding balance
    • Estimated borrowing cost
    • Total amount owing
    • New payment schedule for the next six months
  6. After you review the withdrawal details and are ready to proceed, click Confirm withdrawal.
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