What is Shopify capital & Shopify capital alternatives? This can be your concern if you are planning to start or expand an online business. When you are trying to start or grow your business online, financing is a must. In addition, every eCommerce seller needs cash flow to operate business activities such as introducing new products, maintaining bulk inventory, marketing campaigns, and many more.
Bank financing may be the first thing that can come to your mind when planning to finance your business. You can try your bank, although this process requires a lot of paperwork and waiting time. Online financing providers such as Shopify capital can be the best choice in this case for any eCommerce seller.
What is Shopify capital?
Shopify capital provides business loans and merchant cash advances facilities with no interest from $200 to $1,000,000. But the merchants have to pay a flat fee by remitting a fixed percentage of their daily sales to Shopify. To avail of this offer, you either have to host your website on Shopify or use their point of sale platform. If you have a Shopify account and see the offer that means you meet the requirements of the Shopify capital. Then you can send an application to get the final approval of the loan. If you get approval from them, you will get a formal financing offer and receive the funding within two days.
What are the Shopify capital alternatives?
You will find some Shopify capital alternatives if you just spend a little bit of time researching online. Let’s see some of the online financing providers:
Square Capital provides small business loans from $300—$250,000 with no interest. This offer is applicable for businesses that process credit card payments through the Square POS. If you get approval from them, you will receive the loan. It works like Shopify capital; you do not have to pay any interest rather than a flat fee. Moreover, the loan amount of a merchant is determined by their sales performance and history. You have to make the payments daily if you take a loan from Square capital.
The process of Stripe Capital is similar to square capital. But instead of making payment as the percentage of daily sales, it deducts the payment from the daily transaction processed through stripe. The average amount of stripe capital loan varies from $10,000 to $20,000. You can enjoy a flat fee that will never change. You do not have to worry about late fees, compounding interest charges, or collateral obligations.
You may also read: 8 Best Reasons to Use Shopify to Grow Your Business
The process of Funbox Capital is different from the previous two. It provides lines of credit based on an overall scenario of business performance, including information about their transactions and the value of their invoices. The minimum qualification of Fundbox includes three months of invoicing history, annual revenue of $50,000, a business bank account, three months of invoicing history, and a minimum personal credit score of 500. You will receive the loan straight to your bank account with 24 hours if you get approved. You need to make the payment weekly when you are taking a loan from Fundbox. You can also save money if you pay earlier as Fundbox waives remaining fees on early repayments.
There are some other online financing providers who are ready to serve you as well. So, if you have not found your desired Shopify capital alternative yet, you can spend more time searching for other companies.
Financing is the unavoidable part of any business, and you must find the best source to finance for your business. When you are an entrepreneur who is running or planning to run an online store, you can go for online financing providers rather than taking bank loans.