Merchant cash advance

Shopify Capital offers small business funding in the form of merchant cash advances to eligible merchants in the United Kingdom.

A merchant cash advance is a lump sum that you receive from Shopify Capital in return for selling Shopify Capital a set amount of your future sales revenue. Shopify Capital offers funding amounts between £250 to £375,000 GBP.

For example, Shopify Capital might advance you £5,000 to buy £5,650 of your future sales revenue. You receive £5,000, and Shopify Capital receives 10% of your store's gross daily sales until the total £5,650 is paid.

If you're eligible to apply for a merchant cash advance, then you'll receive an email from Shopify Capital and a message on the Home page of your Shopify admin. If your merchant cash advance request is approved, then you receive the money within two business days.

How it works

There's no deadline or calculated interest rate on your merchant cash advance. You pay back, or remit, a percentage of your store's gross daily sales until the total to remit is paid. The amount of the payment is based on how much you sell.

The gross daily sales calculation is based on every order on your store that's marked as paid. The only orders that aren't included in your remittance are test orders placed while Shopify Payments is in test mode. Two days after you receive the merchant cash advance, Shopify Capital begins debiting your business bank account based on your store's gross daily sales.

For example, if you sell £15,000 of future sales revenue to Shopify Capital, with a remittance rate of 10%, then you pay £10 on a day you make £100 in gross daily sales.

For more information, read our Shopify Capital glossary of terms.

Eligibility requirements

To prequalify for funding options, your store needs to:

  • be located in the UK.
  • sell in GBP.
  • use Shopify Payments.
  • have a low risk profile and process a certain amount of sales.

If your store meets these requirements, then Shopify Capital reviews your store to determine funding eligibility. If your store is eligible for a merchant cash advance, then you'll receive an email from Shopify Capital and a message on the Home page of your Shopify admin. If you don't receive an email or message from Shopify Capital, then your store isn't currently eligible for a merchant cash advance.

Request a merchant cash advance

If you're eligible to apply for a merchant cash advance, then you can view your funding options and request a merchant cash advance directly on the Capital Offers page in your Shopify admin.

Steps:

  1. From your Shopify admin, go to Settings > Capital, and then click Offers.

  2. Click Request for the funding option that you want.

  3. Review your bank and account details, and then click Confirm business details and Confirm account details. If you need to update this information, then Contact Shopify Support.

  4. Click Confirm and set up Direct Debit.

  5. Carefully read the Terms and conditions. If you agree with the terms and conditions, then click Accept terms.

It typically takes one business day for merchant cash advance applications to be reviewed. You can view the status of your request on the Capital page in your Shopify admin.

If your application is approved, then your merchant cash advance should be deposited in your business bank account within two business days.

Apply for a merchant cash advance with YouLend

Some stores need to apply for a merchant cash advance directly on the YouLend website. If you see Apply for funding via YouLend, then follow the redirect to the YouLend website to complete your application.

You receive an email when your application has been reviewed. If your application is approved, then you sign a DocuSign agreement with YouLend and receive your funds.

Your application requires you to submit data about your payments. If you process payments using Shopify Payments, then you can get export payment data information from your Shopify admin by going to Settings > Payment providers > View payouts > Export.

If you process payments using a third-party payment provider, then contact your payment provider to learn how to get your payment data information. If you have deactivated Shopify Payments but you need part of your sales history, then you can export payment transactions from your Shopify admin.

Once you complete your application for funding, you need to update the bank account used for your payouts. You'll receive an email from YouLend with details of a new personal bank account created for this purpose. Your payouts are deposited into this account. Once remittances have been collected, your remaining payout are deposited into your personal bank account.

You can manage your application through the YouLend portal. If you have any questions, then email YouLend. You can contact YouLend by phone at +442039818709 or 02039818709.

Request another merchant cash advance

After you receive a merchant cash advance, you might want to request another merchant cash advance for additional financial support.

If you're eligible to apply for another merchant cash advance, then new funding options display on the Capital Offers page in your Shopify admin.

Keep track of your merchant cash advance remittances

After receiving your merchant cash advance, you can track the remaining balance of your total to pay back, or remit, in your Shopify admin by going to Settings > Capital.

From the Capital page, you can view:

  • the remaining balance.
  • the amount that you've paid, what percentage of the total is paid, and 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 paid to Shopify Capital in the the Amount column.

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