Shopify Capital: Eligibility, How To Apply For It, Pros & Cons

By the time you secure enough funds to launch aggressive ads for that trending product you spotted a week ago, your competitors have already capitalized on the trend and captured the market. That’s when Shopify Capital can come in handy for merchants that need fast loans for business expansion, marketing initiatives, etc.

Nevertheless, Shopify Capital isn’t easy money for everyone. Indeed, you will need to meet certain requirements to be eligible for this funding program from Shopify.

But what exactly is Shopify Capital, how does it work, and what should you consider before applying? Don’t worry! In this post, we will walk you through everything you need to know about Shopify Capital loan.

1. What is Shopify Capital?

Shopify Capital is Shopify’s financial services for eCommerce store owners who use the Shopify platform. Eligible Shopify merchants can access cash advances and loans, which they can use for their various needs, like inventory, marketing, operations and more.

What makes Shopify Capital a favorable choice for many is its flexible repayment terms and generally hassle-free process. With Shopify Capital, you can choose to repay either through fixed terms or as a percentage of your daily sales. Also, you won’t have to deal with the lengthy paperwork or personal credit checks usually required by traditional banks.

According to Shopify, more than $5.1 billion has been distributed to Shopify merchants through this business funding program, helping eCommerce stores on the platform thrive rapidly.

2. How does Shopify Capital work?

2.1. Shopify Capital eligibility

To qualify for merchant cash advance and loan from Shopify, you will need to meet five crucial Shopify Capital requirements:

1. Location: Your business must be located in the US, Canada, UK, or Australia.
2. Activity status: You have been selling on Shopify for at least 90 days or had your first sales at least 90 days ago.
3. Sales performance: Your online store needs to have a consistent sales history. This includes sales volume, frequency, number of orders, etc.
4. Return, chargebacks and disputes: You will need to keep these metrics at minimal rates.
5. Customer interactions: Shopify will also assess the level at which you engage with your customers.

Nevertheless, despite its rather strict eligibility requirements, the Shopify Capital application is invitation-only. This means Shopify will notify you via email or your admin panel (in the Finance tab) if you’re eligible.

So, to increase the chance of receiving an offer from Shopify for their Capital program, from the beginning, make sure you know how to launch Shopify store properly. Then, you should constantly optimize your sales performance, try to minimize issues like disputes, and actively engage with your customers.

2.2. How to apply for Shopify Capital?

As we’ve just mentioned, there isn’t a standard form that you can fill out and submit for your funding request. Instead, if you meet the criteria, you will see one or more Shopify Capital funding offers directly in your Shopify admin dashboard.

So, the first thing to do is go to Finance in your Shopify admin, then click on Capital to see whether you have Shopify Capital’s offers or not. 

💡If you have offers, then follow the steps below to apply for Shopify Capital:

1. Choose an offer: Pick a funding offer that best fits your business needs. You can customize the funding offer to the amount you want to apply for.
2. Apply: Click Apply now on the offer you want to choose. Verify your identity and business details.
3. Review terms: Carefully review the terms in the Merchant Loan Agreement or Receivables Purchase Agreement, depending on your location.
4. Submit application: Click Submit application to confirm your agreement and consent to the terms.

Once your application is submitted, it will undergo the Shopify Capital eligibility review. However, keep in mind that receiving an offer does not guarantee that you will receive the funding. Since the final approval is subject to the Shopify staff’s evaluation, if you don’t meet their criteria, your request may still be denied. 

⭐ As a newbie, it seems like you might not be eligible for Shopify Capital. Hence, make use of Shopify 1 dollar program to save costs.

3. Shopify Capital funding types

Shopify Capital offers two funding types– Merchant Cash Advances and Loans, with availability varying by country. Here’s a summary:

💡 What is the main difference between an MCA and a loan?

It is how you repay the funds.

With an MCA, payments are flexible and based on your daily sales. With a loan, you repay a fixed amount on a regular schedule, usually monthly, regardless of your revenue.

Suppose you receive $10,000 in funding and need to repay $12,000 in total:

With a Merchant Cash Advance, you’ll pay back a percentage of your daily sales—usually around 10%—until the full amount is repaid. This revenue share flexibility makes MCA ideal for businesses with seasonal or fluctuating sales.

With a loan, you’ll make fixed monthly payments (e.g., $1,000 for 12 months), which makes it more predictable. For this reason, the loan is suitable for businesses with a steady cash flow.

4. Shopify Capital review: Is it worth it?

With Shopify Capital, there’s no traditional credit check, you can get access to the funding you need fast instead of having to wait for weeks like traditional loans. 

However, some merchants have expressed their confusion with Shopify Capital’s bad act policy. For example, a merchant named Chris reported that his Shopify store was locked without warning since Shopify Capital detected his slow sales as a bad act.

Another downside is cost. While there’s no traditional interest rate, Shopify Capital charges a fixed fee. That means if you pay it off quickly, you end up with a higher effective interest rate. Compared to traditional loans or even invoice financing, it can be more expensive in the long run.

All in all, here are the pros and cons of Shopify Capital:

5. Shopify Capital success stories that are truly inspiring

With fast access to funding, Shopify Capital has helped many brands seize opportunities timely, whether it’s scaling quickly, amplifying growth strategies, or simply keeping operations running smoothly.

Below are some Shopify Capital success stories for your inspiration:

1. The Shop

Boe and Kennedy Brodhun founded the Bend, Oregon-based Shop Forestry and Supply in 2021 to provide forestry professionals with the required equipment.

The brand utilized Shopify Capital to receive the funding necessary, enabling them to stock expensive inventory, such as $400 fire pants, to meet their community’s current needs.

This capital funding transformed their retail business so that they could create a state-of-the-art line of products and establish their physical store as a destination for local forestry workers and enthusiasts.

2. Polar Monkeys

Polar Monkeys is a wellness brand that specializes in high-performance cold plunges, combining innovation and design with artist-specific designs.

To fund growth at a faster pace and expand their product lines, they utilized Shopify Capital to scale up businesses and introduce new product lines to meet the exploding demand by professional athletes, commercial centers, etc.

In just three years, Polar Monkeys experienced exponential growth, generating millions of dollars in revenue and becoming the leading authority on cold therapy.

3. Eqpd 

Eqpd is an American small-town brand that manufactures long-lasting, general-purpose bags that promote sustainable lifestyles. They are made from sturdy dry bag material and designed to be used regularly.

Eqpd used Shopify Capital to make it easier for them to finance inventory and production costs so that they could continue to make quality, sustainable products.

With improved manufacturing processes under their belt, they’ve had an astonishing 37% repeat customer rate.

If you want to launch your Shopify store without spending hours configuring your store, consider buying one of our premade Shopify themes or using our Shopify store setup service. 

6. Conclusion

With Shopify Capital, Shopify aims to encourage entrepreneurship among eCommerce store owners who need fast funding to fuel their store’s growth. 

eComStart team hopes this guide gave you a clearer picture of whether Shopify Capital could be a good fit—and what steps you can take to improve your chances.

And if you find this blog helpful, you can explore more articles like it at eComStart.io 

7. Frequently asked questions