Entrepreneurs using the Shopify platform to power their business now have an alternative way to raise much-needed funding — from Shopify itself.
Shopify Capital has launched to help Shopify business owners secure funding without going through a lengthy application process or forms. Shopify Capital doesn’t provide loans to entrepreneurs, but offers a choice of merchant cash advances of different amounts, at different remittance rates, that don’t require monthly payments. Instead, the business remits a fixed percentage of daily sales to Shopify until Shopify receives the total amount of receivables purchased.
Entrepreneurs can choose which advance is right for them. Currently, eligibility for the program is limited to the US, but the company has expressed plans to expand the program “over the coming months”.
The move is the latest step in Shopify becoming a one-stop shop for its ecommerce retailers; early this month, the company announced the acquisition of San Francisco-based Kit, which manages a business owner’s social marketing via SMS.