If you need additional funds to develop your business, then you might be eligible for financing from Shopify Capital through a merchant cash advance.
You can apply for a cash advance by selling a portion of your future revenue to Shopify Capital. The sold portion of your future revenue is then remitted to Shopify Capital as a percentage of your daily sales.
If you're eligible for financing from Shopify Capital, then it takes 2-5 business days to be approved for a merchant cash advance. If your request is approved, then you could receive the money in your business bank account as soon as the next business day.
You might find it helpful to read our glossary of terms before reading about Shopify Capital and the merchant cash advance.
Merchant cash advance
A merchant cash advance is a lump sum (called the amount received) that you receive from Shopify Capital in return for selling to Shopify Capital a set amount of your future sales revenue (called the total to remit). The amount received is deposited into your business bank account, and then a percentage of your daily sales is remitted to Shopify Capital until the total to remit is completely paid.
For example, Shopify Capital might advance you $5,000 to purchase $5,650 of your future revenue, with a remittance rate of 10%. The $5,000 amount received would be delivered to your business bank account, and Shopify Capital would receive 10% of your daily sales revenue until the full $5,650 total to remit has been remitted. When you've remitted over 25% of your total to remit, you have the option to remit the remaining balance in a single lump sum.
There is no deadline for remitting the total to Shopify Capital. The daily remittance amount is determined by your store's daily sales, since the remittance rate is a percentage of your store's daily sales. The remittance amount is automatically debited from your business bank account.
Shopify Capital is offering advance amounts between $400 and $500,000. The total to remit and remittance rate depend on your risk profile.
Eligibility for financing from Shopify Capital
If you're eligible for a merchant cash advance, then you'll receive an email and see a message on the Home page of your Shopify admin inviting you to view your available financing options.
If you do not receive an invitation to view your financing options, then you are not eligible for financing from Shopify Capital at this time.
Request a merchant cash advance
You can view your financing options and request a merchant cash advance directly from the Home page of your Shopify admin:
From your Shopify admin, go to Home.
Find the eligibility message from Shopify Capital, and then click View funding offers.
On the Capital page, you'll see three financing options. Compare the terms of the financing options, and click Request beneath the one that you want.
The terms of each option will include the amount received, the total to remit that Shopify Capital will buy, and the remittance rate that will be deducted from your daily sales and remitted to Shopify Capital.
In the Review and accept terms dialog, carefully review the Terms and conditions section, and then click Shopify Capital Agreement to open it in another browser tab.
Carefully review the terms of the Shopify Capital Agreement. If you agree with the terms, then go back to the Review and accept terms dialog, and click Accept terms.
Your request will be reviewed by Shopify Capital, and you'll hear whether you've been approved within 2-5 business days. If you're approved, then your merchant cash advance will be delivered to your business bank account.
Two days after you've received the merchant cash advance, Shopify Capital will begin debiting the daily remittance from your business bank account based on your sales revenue each day.
Keep track of your merchant cash advance remittances
After receiving your merchant cash advance, you can track the remaining balance of your total to remit from the Home page of your Shopify admin under Shopify Capital.
Under Shopify Capital, click View funding details > Capital. The Capital page provides a detailed report that shows your financing history.
From the Capital page, you can view the following remittance information:
- The remaining balance of the total to remit.
- The amount of the total to remit that has been remitted.
- The percentage of the total to remit that has been remitted.
- The transfer history of remittances.
In the transfer history section of the report, the Total sales column shows each day's sales revenue, and the Amount column shows how much of that revenue is remitted to Shopify Capital.
Remit the remaining balance
When you've remitted 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.
To remit the remaining balance of your total to remit from the Capital page of your Shopify admin, follow these steps:
From your Shopify admin, go to Home.
Under Shopify Capital, click View funding details > Capital.
Click Remit remaining 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, check the authorization box and click Remit remaining balance.
It can take up to 3 business days to process the lump sum debit remittance. All regular remittances are paused during the processing period.
You will receive a confirmation email when your lump sum remittance debit is complete.
What's included in the remittance?
To calculate the amount that will be remitted to Shopify Capital each day, the remittance rate is applied to your store's daily sales revenue.
For the purpose of calculating remittance, your store's daily sales revenue includes every order that was marked as paid that day, regardless of the source of the order, how payment was processed, or whether the order was later refunded or canceled.
When calculating remittance, the only orders that are not included in your store's daily sales revenue are test orders that were placed when Shopify Payments was in test mode. If test mode was not enabled when an order was placed, then the order is included in your store's sales revenue when the day's remittance is calculated.
Shopify Capital and Shopify Payments
To receive financing from Shopify Capital, you need to have Shopify Payments activated as your credit card payment provider and continue to use it for the duration of your financing agreement. After you receive financing from Shopify Capital, you won't be able to deactivate Shopify Payments until the total to remit has been fully remitted.
If you try to deactivate Shopify Payments while you're in an ongoing financing agreement with Shopify Capital, then you'll see an Unable to deactivate Shopify Payments message.
When the total to remit has been fully remitted and your financing agreement is complete, you'll be able to deactivate Shopify Payments.