How Shopify Capital works

  1. Receive your offer

    If you’re eligible, we’ll offer you a choice of merchant cash advances of different amounts, at different remittance rates.

  2. Choose your amount

    You choose which advance amount is right for your business, and if you’re approved, we’ll deposit the funds in your bank account, fast.

  3. Start making sales

    As you make sales, you’ll remit to Shopify a fixed percentage of your daily sales until Shopify receives the total amount of receivables purchased.

The right amount, at the right time

Instead of spending hours at the bank, filling out paperwork with no guarantees, we’ll come to you with merchant cash advance funding options, tailored to your business. You decide which amount will help you reach your goals, and we’ll deposit the funds. It’s that easy.

All the capital, none of the complications

Unlike loans, merchant cash advances don’t require monthly payments and there’s nothing to set up with your bank. The merchant cash advance will be remitted to Shopify automatically as you make daily sales. The more sales you make, the sooner you’ll deliver the total amount of receivables purchased to Shopify. And, if your store makes no sales on a given day, you’ll remit nothing.


With Shopify Capital, you get the money you need to grow your business with just a few clicks. There is no lengthy application process and no paper forms to fill out. If you’re eligible, you’ll receive an email and a notification in Shopify.

Eligibility is currently limited to a small group of merchants within the United States, but we plan to expand this program to more merchants over the coming months.

How Pistol Lake Uses Shopify Capital to Grow their Business

Pistol Lake, a Los Angeles-based apparel manufacturer, used their Shopify Capital to develop a new ultra-sustainable fabric made from recycled bottles and the pulp of eucalyptus trees for their upcoming activewear line.

Shopify Capital gave Pistol Lake the funds they needed to keep their business growing, while helping them avoid putting up collateral, giving up equity, or spending their time filling out forms at the bank.

“Shopify Capital was a no-brainer because we’ve entrusted them for over three years as our ecommerce platform—the core of our business— and they’ve been the best partner we could ask for.” said William Sulinski, founder of Pistol Lake.

Photo of a man wearing a Pistol Lake hoodie Photo of the Pistol Lake design studio

“We would have had to borrow money from friends or raise capital from investors, possibly giving up some equity had Shopify Capital not come around.”

– William Sulinski


Shopify Capital offers merchant cash advances (MCA) and loans. The difference between a loan and an MCA is that our loans have a fixed term of 12 months, whereas the MCA does not. If your business is in AZ, ID, IL, IN, KS, LA, ME, NC, SC, UT, WA, WI, or WY, any funding received before May 15th, 2018 is an MCA, and any received after this date is a loan. In all other states, we offer only MCAs.

A merchant cash advance is the purchase by Shopify of your future receivables at a discounted price. A merchant cash advance gives you a lump sum in exchange for a percentage of your future daily sales until you have paid the total amount of receivables purchased.

A Shopify Capital loan gives you a lump sum that you repay through a percentage of your future daily sales. Every 60 days, you’re expected to pay back ⅙ of the loan. If you can’t reach this through your regular repayments, the difference (milestone payment) will be debited from your bank account.

For every day that you make sales, a certain percentage of the gross dollar amount of your sales (the remittance rate) is used to calculate your remittance. So, on days when you sell a lot, your remittance will be bigger, and on days when you make less, your remittance will be less. You’ll continue to make remittances until you deliver the total amount of receivables purchased.

Merchant cash advances do not have an interest rate. Instead, Shopify will purchase a set amount of your future receivables at a discount.

Some eligible merchants may receive the option to secure additional funding by selling to Shopify an additional amount of future receivables. If this is the case, you will be notified by email.

Currently, merchant cash advance offers are valid for 30 days.

Example remittance rates

Here’s an example of what 5 days of remittances would look like for a merchant who has sold $15,000 worth of receivables to Shopify, with a remittance rate of 10%:

Day Daily Revenue Shopify’s Share Balance
1 $100 $10 $14,990
2 $150 $15 $14,975
3 $125 $12.50 $14,962.50
4 $175 $17.50 $14,945
5 $105 $10.50 $14,934.50