Merchant cash advance
Shopify Capital offers small business funding in the form of merchant cash advances to eligible merchants in the United Kingdom. Shopify Capital offers funding amounts between 250 to 375,000 GBP.
A merchant cash advance is a lump sum of money that you can apply to receive for a fixed fee. You pay Shopify Capital a percentage of your daily sales until the total amount is paid.
For example, Shopify Capital might advance you 5,000 GBP for 5,650 GBP paid 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 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 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 in 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. After you remit over 25% of your total to remit, then you have the option to remit the remaining balance in a single lump sum.
For example, you receive a merchant cash advance of 15,000 GBP with a remittance rate of 10%. On a day when you make 100 GBP in gross daily sales, you pay 10 GBP.
For more information, read our Shopify Capital glossary of terms.
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.
From your Shopify admin, go to Settings > Capital, and then click Offers.
Click Request for the funding option that you want.
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.
Click Confirm and set up Direct Debit.
Carefully read the Terms and conditions. If you agree with the terms and conditions, then click Accept terms.
It typically takes one to five business days for merchant cash advance applications to be processed. 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.
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.
Remit the remaining balance
After you remit over 25% of your total to remit, then you have the option to remit the remaining balance in a single lump sum. The payment is debited from the same business bank account that's tied to your Shopify account.
- From your Shopify admin, go to Settings > Capital.
- Click Remit balance.
At the prompt, review the balance to be remitted. If you're sure that you want to remit the full amount of the remaining balance, then check the authorization box and click Remit balance.
It can take up to 3 business days to process the lump sum remittance. All regular remittances are paused during the processing period.
You receive a confirmation email when your lump sum remittance is complete.