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Shopify Capital Review: Short-Term Business Funding

Shopify Capital offers short-term business funding in the form of merchant cash advances and short-term loans. It has relaxed borrower qualifications and competitive terms and fees.

    Kate Hoots
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Kate Hoots

Kate Hoots

Expert Analyst & Reviewer at Merchant Maverick
An expert in business banking, consumer finance, and online payments, Kate Hoots has been writing about small business commerce since 2020. A former journalist for the West Linn Tidings and the Wilsonville Spokesman, Kate boasts wide experience in business leadership and communication. She has a degree in English Literature from Lewis & Clark College.
Kate Hoots
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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Shopify Capital for yourself.

The Merchant Maverick Seal of Approval 🏆

Shopify Capital



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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Shopify Capital for yourself.

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6 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Shawn Tipping

    Organization Name: Game Plan Experts

    We used them twice, wasn’t bad, the review is for the worst communication from any organization I’ve ever dealt with. We had a couple of failed daily payments and they locked up our store. They now have about 2,500 dollars locked up, and we only have 4300 left on our capital. We’ve asked them to take the whole 2,500 but they just ignore emails. You can’t call them, and they don’t have chat or respond to emails. The customer support side can’t get them to do anything and they don’t even give them answers. It is messed up, filed a complaint with the BBB against the Capital side, will see if they will contact us.

    1
    • Organization Name: Game Plan Experts

    This comment refers to an earlier version of this review and may be outdated.

    Ayana Muss

    I’m not sure about the US, but in Canada, Shopify Capital has factoring only, with no mandatory loan payment. Shopify Capital is well suited for seasonal businesses. For us, sales drop off sharply in April and rebound sharply in September. The trick is to take out your Shopify Capital loan, just before things start to slow down, as the longer you take to pay back the loan, the less the APR is.

    Another thing to consider is risk, if you are supporting your business with bank loans, with personal guarantee’s, you may want to migrate that risk to Shopify Capital if your are Canadian. The Canadian Shopify Capital agreement, says that if you stay in good standing with Shopify, then you can stretch out your payment for eternity, if for some reason your business collapses, as long as keep your online store open with no major change in products you sell.

    In reality, Shopify will simply write off the loan after several years, if your store never recovers due to the pandemic, change in markets, new competition, etc. In these uncertain times, it may be worth moving any bank financing over to Shopify Capital, and thus eliminate those personal guarantee’s. Not sure if this works in the USA, as in Canada Shopify Capital is backed by the Canadian Export Development Bank (EDC), so the Canadian Government takes the loss, not Shopify, if you fail.

    Also for those who are wondering, Shopify needs around 9 months worth of data, before they make an offer to your for Shopify Capital. If you don’t get an offer within that time frame, you are probably considered high risk for the products you sell, and will never get an offer.

      This comment refers to an earlier version of this review and may be outdated.

      JerryW

      Agree – this is what you definitely avoid. If you really think that they offer 15% APR ask the PRO, you’ll be surprised. And this loan shark company has no mercy during coronavirus hard time for business – they charge us everyday. Absolutely and definitely NOT recommended. Look around, dozen of loan providers will get you the money for half of Shopify cost.

      1

        This comment refers to an earlier version of this review and may be outdated.

        John Cantu

        This is an offer for desperate business with no chance for any reliable loan.We tried their loan – after full pay off , conted APR was….72% !Their new offer is a bit better – ‘only’ 46%. , and only in case we’ won’t increase our sore sell. Once we get make more money , comparing to previous year, APR would increase of course ( since peay off earlier ) Well…this is a following financing based on daily/weekly repayment with perfectly hidden real cost. Do your math before you consider this offer. Unless…you are desperate 🙂

        1

          This comment refers to an earlier version of this review and may be outdated.

          Damien Singh

          Organization Name: TA brand

          There is no pay off fee or increased apr for paying early and the payback amount is a set fee you pick from 3 options. You got the wrong loan confused.

          • Organization Name: TA brand

          This comment refers to an earlier version of this review and may be outdated.

          Bobby

          Agree with Damien. Think you may have left your review on the wrong page. Our calculated ‘APR’ was around 15%. But it was handy for a startup, and easy to obtain.

            This comment refers to an earlier version of this review and may be outdated.

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