shopify capital complaints
Published on: February 4 2023 by pipiads
Table of Contents About shopify capital complaints
- SHOPIFY OFFERS LOANS!! | Is Shopify Capital A Yes Or No For Small Business Owners?🤔
- Shopify Capital Review... What is Shopify Capital? How does Shopify Capital Work?
- $23K Shopify Capital Offer | Watch Before You Accept Cash Advance Loan
- Shopify Capital Review: I received $22k+, here’s my experience.
- Should You Accept Shopify Capital Loans?? (Do This Instead...) | Shopify Dropshipping 2021
- SHOPIFY WANTS TO GIVE ME $25K😱PAYPAL WORKING CAPITAL + SHOPIFY WORKING CAPITAL
SHOPIFY OFFERS LOANS!! | Is Shopify Capital A Yes Or No For Small Business Owners?🤔
[Music]. hey guys, welcome back to my channel and if you knew, you should definitely subscribe, because i'm a whole vibe okay period. so on today's video, i wanted to touch on shopify capital. i've had a couple of y'all ask me about shopify capital and then i'm also in a couple of business groups and a lot of people have questions about it. so i'm like, why not make a video? because i'm sure it's a lot more people that would like to know a little bit more information about it, especially from someone who's tried it before, and i've already done shopify capital about three different times. so i'm like, why'd i make this video? just gonna get right into it. for those of y'all that do not know, shopify capital is basically a loan that shopify gives business owners. i'm not gonna lie to you. i don't know what makes you eligible for this loan. i just know that once you're eligible, shopify will let you know. okay, they send you emails. it'll pop up on your home screen, especially if you have the app. they're gonna let you know. but if you haven't seen the email or anything, you can always call shopify and ask them if you're eligible. that's a pretty quick and easy process right there. now the amount you get just depends on what shopify wants to give you. so it's not a specific amount that everyone starts off with. they probably decide how much they're going to give you for your first loan based on how much sales you get. i'm not 100 sure, but i'm just guessing that makes sense. first time i did shopify capital, the highest amount i was able to get was eight hundred dollars, and that is typically three amounts that you're able to choose from. so they have like, for example, they'll be like 300, 400 and 500. obviously, the higher the amount, the higher the interest or the higher the percentage is that you have to pay back. for example, if you choose that middle option, the four hundred dollars, they may say that if you choose four hundred dollars, you're gonna have to pay 40 percent back of each sale that you make. so that's how shopify gets their money back. let me back up a little bit, because a couple of people were asking me: well, how do they get their money back? how does it work? so shopify automatikally takes it from you every time you make a sale. the percentage varies. so, like i said, if you choose the smaller amount, the percentage is maybe like 10. i'm not 100 sure. i know the middle amount is 14, because that's what i usually go with. the in the middle amount is usually the recommended amount. so they recommend you take a certain amount, i guess, based off how much you make- i'm not 100 sure- and then you have the highest amount which has the highest percentage. so, like i said, i usually pick the one that's recommended to me, which is the. whatever the amount is, that's in the middle and that's usually 14 back. i usually have to pay 14 back. so from every single sale i make, shopify is going to take 14 until i pay that balance off. and they do charge a little bit of interest. uh, for example, if that price that you chose was three hundred dollars, you're probably gonna have to pay about 380 back or 400 back. shopify is going to make sure that they get a profit, of course. so there's a little bit of interest. you have to make sure you read- please do not sign up for anything without reading- so you know what you're paying back. usually, when you finish paying everything off, i'll be eligible to apply again and the amount will usually increase. but what i was told it's not necessarily like a credit card. so just because you may pay everything off early, because you do have the option to pay everything off early. but i was told that it's not necessarily like a credit card where if you pay everything off early, they're going to automatikally increase your limit. they told me that over the phone. just beware that if you guys are looking to get an increase, just because you paid things off early does not necessarily mean that they will give you an increase. the next thing i wanted to touch on was whether or not it's worth it and, in my opinion, if you're in a situation where you're getting consistent sales, you do not have a problem with buying inventory. i do not think that you should apply for shopify capital. i feel like you should apply for shopify capital if you desperately need to, meaning, if you need inventory, oh, you need to pay for marketing, you need to pay for shipping supplies. then, of course, sign up for shopify capital if you're eligible. it's going to help you out, it's going to give you that push that you need, and it's not like they're taking money from you that you don't already have. it's not like they're automatikally taking money out of your account. they're taking money out of whatever it is that you make. here's what i am going to say: make sure that you are making a profit. if that means you have to up your prices to incorporate that percentage that shopify is going to take out, then do it. okay, do not. do not, do not sign up for shopify capital if you're not going to get a profit and if you're not willing to change your prices, to adjust your prices, because it will be pointless. you'll be making no money back. if you have to up your prices, that's just what you're gonna have to do. so incorporate that percentage into your prices and you should be good. i'm not getting a loan from someone if i'm not planning on doubling it, tripling it. i do not always use shopify capital. i use it for certain situations, like if i want to have a whole bunch of wigs on hand and i just feel like flipping money. that's what i do when i sell those wigs and flip that money and although shopify is getting what they get back, i am getting that and then some back. so you have to be smart about it. but, yes, shopify capital is definitely worth it. that's pretty much it. that's pretty much all the questions that i came across or i've seen people ask in the groups that i'm in, so hopefully this helps. if you have any more questions, you can always comment down below or dm me on my business instagram. i have to say this: i respond much faster on my business instagram because that's where i am most of the time. hopefully you enjoyed this video. don't forget to like, comment and subscribe, and i'll see you in the next one.
Shopify Capital Review... What is Shopify Capital? How does Shopify Capital Work?
hey, everybody wanted to make a quick video about shopify capital today, and basically the reason why i'm making this video is just to educate people on some of the things that they should be aware of, uh, when taking a look at shopify capital, and just some kind of ideas that i want to go ahead and share with you guys. okay, so basically, what shopify capital is? it's a loan system that shopify has created based on the amount of sales that you get for your shopify store. okay, now, generally, i'm opposed to loans. i'm against loans. i i believe that you don't need a loan to start a business. i never did, right? i never used a loan to start my own businesses and you know i don't plan on it in the future. right, i believe that if you're over leveraging, you probably shouldn't be involved in that business anyway. but that's just my personal opinion. it might be old, traditional thinking. that's just me, right? i'm the type of guy who i get into business to search for financial freedom, not being entrapped and alone, or some kind of, uh, financial payment that i have to make. does that make sense? so that's just my personal opinion. now, the way that the shopify capital kind of works is: you know you apply for it instantly. they'll review your sales and then they'll give you a number, right, whether it's two hundred dollars, all the way up to a million dollars for the loan and every single, uh, two month period. they have six two month periods where the whole loan has to be paid back every month period. you have to pay a minimum back through your sales. if it doesn't cover through your sales, right. if your sales don't cover the amount that's required, then basically what's going to happen is they're going to just take the money out of your bank account. so there's things that you have to be aware of. this is a loan. at the end of the day, it's going to be attached somewhat to your credit. it's going to be attached to your business. um, you have to ask yourself: how liquid will i be? okay, what happens is, when you do apply for the loan, you get this lump sum- whether it be a million, whether it be 500 000, whatever the number might be- into your bank account the next day, okay, um, so you have to be aware of that and- and it's a, you know, it's more risky than anything, and something i want to- i want to just go ahead and say publicly is majority of people who who try shopify. they're not just trying shopify and they and they have never heard of it before. no, they probably watch youtube videos. they probably seen the online gurus tok about it. they probably pictured some kind of uh dream that they have in their mind that they're gonna buy some mansion the next day and they're gonna have a lamborghini right after a week of doing shopify. you know, these are stories that happen all the time and people over leverage themselves and they lose everything. now i'm not saying you're not going to be that person, but what i am saying is that you shouldn't take a risk to get there now. with that being said, there are still some benefits to loans. so in this case, for example, if you're a um, let's say, a white label company, and you get these boxes, let's say, manufactured, and you know there's so much customer demand that you know your, your uh, for example, your uh manufacturer, can't get it done on time or they require an extra fee to get all these boxes done as soon as possible, right, then that might make sense to get the, the loan done so that you could pay for the extra boxes, or whatever the case may be in manufacturing to get it faster, because, since you already have the demand, that's a different story for a loan, but i don't recommend anybody who- and guys, let's be clear here, i'm not a financial advan, advisor or anything like that, so that's just a quick disclaimer- but it's my personal recommendation that if you're go, you know it has to make sense. if you're going to do a loan right, you have to have the demand, you have to have the, the guaranteed income that you're going to be able to provide this thing. um, i know personally in the uh, you know, especially in the clothing space, like we do clothing right. so, or at a clothing store, um, with clothing, like sometimes, the amount of inventory, okay, you run into problems because what happens is you need to get backed up with inventory. you need some kind of inventory because the downtime to wait for the manufacturer to make it takes a while. so something you like to do is you want to, you know, stok up on the inventory right, and then people will be able to purchase your products more long term. and then you have you. you always have to be essentially ahead of the game and that costs money, that costs cash, that's cash flow, that's liquidity that you need. you know loans can help with that, right? maybe, for example, you have a wholesale order that somebody asks you: hey, we want to buy 10 000 units of your product, but you don't have the cash to fulfill that order. what do you do? you get a loan and then you take that 10 000 um. you are you, you take a loan for, let's say, 2 000, 5000, whatever. um. you get the products manufactured, you send it to the wholesaler, right, the person who's purchasing at a wholesale price. then you make the 10 grand from them, right, or 30 grand or 100 grand, whatever the price is for the product, for those specific 10 000 units, right. and then you make the profit on the end, uh, almost instantly, which is a different situation. i'll give you guys the same example in, like, let's say, supplements. okay, when you're a supplement company, right, and you have supplements in your warehouse, there are going to be companies like gnc, you know, uh, all these different companies, mom and pop shops, right, the vitamin shop, uh, vitamin superstore, all these different stores that sell uh supplements in store, right, and they're going to call your company up and they're going to say, hey, we want to order 10 units of this, 100 units of this, 40 units of this, 60 units of that. right now you might not have those specific products in house, in warehouse. they have to be manufactured and let's say the. the manufacturing costs costs you two grand. well, what you do is you go get a loan for let's say two grand, right, and you, you get the products manufactured, you send it through instead of waiting right, and then you profit 10 grand on the back end. because when they pay- well, excuse me, when they want a certain amount of units- let's say 100 units- well, those hundred units cost, let's say, two grand for them. but, um, you're going to be making much more on the back end when they actually sell. does that make sense? so, and there's a whole lot of different ways that things get done. so, for example, uh, you know, you might buy the units at, let's say, 40 units at a price of 200.. and um, the, the supplement company that's selling it in store like the mom and pop shop, might buy it off of you for two grand. that's how you make your profit. or it might be different where they ask you to bring their products in store and then you only make the profit when they actually sell. so there's different kind of scenarios in which, um you know loans should work, but it's my advice to everybody that you really pay attention to uh when you're using a loan. um, there's never a time in my business where i use the loan to build my business, uh, as a beginner. i've thought about it and i've experimented and i've looked around, but i've never actually used one and i don't plan on anybody using one uh without some kind of advisement or some counseling or something from somebody that's more um, that really has your best interest in mind. put it that way. okay, guys, so that's all i got to say about shopify capital. is it a good option for some people? sure it might be. um, is it a good option for everybody? absolutely not in general. uh, you know, and something you have to realize is 30 interest. that's a lot of money, uh, that right. so for every 5 000 that um shopify gives you um, you're going to have to pay an extra 650 on top of on top of that 5 000.. that's a lot of money, uh, people don't recognize that. if you get a business loan, uh, the, the int.
More:How to Make Your Brand More Appealing
$23K Shopify Capital Offer | Watch Before You Accept Cash Advance Loan
what's up, y'all? so shopify just offered me 23 000. with the click of a button, the money can be in my account. so, in this video, what we're going to tok about: does shopify capital make sense for your business, what is shopify capital and the pros and cons of shopify capital? so check this out right here: 23 000, right there. so the smallest offers 13, the biggest one's, 23.. should i take it? does it make sense? i don't know. stay tuned, let's figure it out. boom, what's up, y'all? let's tok about this money. so, shopify capital: what is shopify capital? does it make sense for your business and how does shopify capital work? so i've been using shopify for several years and, in a nutshell, what it is is they're extending you working capital off of the sales of your business and what they'll do is on your daily sales. they will pull money from your account to pay for that shopify capital. so they definitely take the money aggressively, but it definitely has the pros and cons. so let's go over all the pros and cons of shopify capital. shopify capital gives us money too. i'm gonna read what they actually put in the verbiage right here: to buy inventory, invest in marketing and get your business ready for black friday, cyber monday 2020, with funding from shopify capital: no paperwork, no credit checks. the guesswork is not required, because they already see your sales and they're going to handle everything and they're pretty much extending working capital to us, making it very simple. so that's the catch. so i want you guys to pay attention to how exactly shopify reels us in. i've toked to several shopify owners and the reason why they all love shopify is because, if you've ever taken out a traditional conventional business loan, they want to see tax documents, they want your blood work, they want to know your first child's name, they want to know everything about you. but with shopify, it's literally a click of a button. that was easy. so before we dive in and i show you my offers that go from 13 000 to 23 000, we need to tok about the percentages and how they affect your bottom line, because, tiknically, it's all about your bottom line and they make it so easy to take the money that if you don't do the calculations, you can make this loan a cash flow killer. so i wanted you guys to pay attention to that. we're gonna dive into the screen share right now so i can break those numbers down for you guys. i'm jumping into the screen share right now so that you guys can see how exactly these numbers are broken down. so here's my shopify store. they've extended me some capital, um, so let's look at the offers. let me join in with you guys real quick. so let's look at the offers. i have three offers from shopify right now for 13 000, for 19 000 and for 23 000. so it's like wow, all this money that i could easily get with the, you know, literally by clicking the button. if i click request, shopify and accept this money, this money is hitting my account in the next three business days. so i wanted to break down how exactly shopify capital works, because, if you see, it's thirteen thousand dollars. they want ten percent of daily sales, which will break down to fourteen thousand dollars. that's for one loan and you can see the next loan. they have the same different, they have different breakdowns and they seem so little. fourteen percent. we're going to give you nineteen thousand dollars and we only want twenty thousand, nine hundred, and then the big offer: twenty three thousand. they want seventeen percent of your daily sales. so what we're going to do right now is break those down. i wanna show you the type of sales that i normally do. so let's see if i can refresh. i'm doing anywhere from um fourteen hundred dollars to two thousand dollars a day. i don't know why shopify is not okay. here we go. so yesterday you can see we did 1400, and then for the week so far, you see we're at 4200 and today is wednesday. so that's kind of how that breakdown works: 2000 on the 23rd, 1400, and then i had a drop on the 25th when i was redoing my ads. so if i'm doing, if i'm doing 15 hundred dollars a day, doing the math, i'm gonna pull out the calculator for you guys. all right, so fifteen hundred dollars a day in sales, i'm gonna take out ten percent, that's a hundred and fifty dollars. that's going to come out of you guys account every single day if i keep my sales consistent at fifteen hundred dollars. the reason i'm breaking this down is because i want you guys to understand, yes, the loan is easy, but how it can be a cash flow killer if you don't use the money directly associated with your business. so at 150 a day- monday, sunday to sunday, not just business day, sunday to sunday- they're taking the money that equates to one thousand and fifty dollars of funds that they're going to get every single week times four weeks. four thousand two hundred dollars a month on a conventional loan- if your credit is good and everything's going well, i would assume that you know- on thirteen- you know thirteen thousand dollars for that ten percent loan, you would probably be paying anywhere from a hundred to two hundred dollars a month. so let's break down the pros and cons of this situation right here. conventional loan- i'm gonna put it on this side: conventional loan: low monthly payments, controlled monthly payments. but the time of the loan will be long. you'll be dealing with this maybe for a year, two years, however long you extend that, and the interest that you know they put on top of it. also, another con: you'll be paying more interest overall on the conventional loan over here. pros: controlled spending: i understand how much i have to pay. so now let's go over here to the shopify side. so the shopify side. what's cool about it is let's tok about a pro. the pro with the shopify loan is that it's easy: no paperwork, no taxes that you have to do. on the other side, it's just a click of a button and they're giving you a loan extended on what they see, your sales and what they feel that you can pay back. you don't have to make the payment, they're taking the payment. let's break down to a con. a con of the shopify loan- because i've had several of them before- is the cash flow killer, the aggressiveness that they are taking the money. their money is coming out every single day and a lot of times we won't just get the 10 loan, we'll get the biggest loan, so at 23 000.. right here, if i take that loan and they want seventeen percent of my daily sales, let's say i stay consistent at fifteen hundred times seventeen percent, that's now two hundred and fifty five dollars a day of cash that i'm losing. that could be going towards the operation of my business. so when i multiply that times seven, that's almost eighteen hundred dollars a month- i mean a week- that could be going towards paying somebody or could be going towards other things in my business. multiple just got to sell y'all. multiply that times four, that's how much money a month that they would be getting from me until that loan is paid off. the issue with the shopify capital to me personally is just the cash flow killing that it can do to your business. so to break it down because i don't want to sound like you know a negative nancy. shopify capital has been good in several instances to my business. the time that it has been good to my business is when i took out a 10 loan. i took out the smallest amount and i directly use those funds to purchase- um you know- materials for my business, so those materials were getting used into every single shirt that was purchased. the loan was only for 3 600 and i paid it off within one month. i almost didn't even know i had the loan and that was a great situation. now i've had a bigger loan before that i took out at the highest percentage and the cash was always gone. it was always depleted from my operational account and that's something that you don't want to go through, because from my experience to you guys and just teaching people about shopify, that can definitely be um hindering to the things that you need to do in your business, to paying people that you need to.
More:Should You Pick a Niche For Your Agency?
Shopify Capital Review: I received $22k+, here’s my experience.
what's up everybody. my name is kyla. i am the founder and co-owner of touch by thai, and today i'm going to give you my review of shopify capital and explain to you how the process worked for me. i wrote a blog post, too, to go with this video, um, to kind of like give you more detail about, like what the process was like, just in case i skip over something in the video. so if you want to learn about like my entire experience with shopify capital, um, go ahead and go down to the description box and click the link to my blog. make sure you comment, like it and share it with some people who you think were very useful as well. i want to start by telling you guys what shopify capital is. it's basically like a payday advance kind of like for your business, and they based it on, like, the quantity of your sales, the frequency of your sales, uh, and the consistency of your sales as well. they don't do a credit check on you or your business necessarily. they have everything that they need to qualify you for a loan, which would be your business address, your contact information, um, your business bank account, a confirmed source of income website, income website, sales frequency and, if you also use them for, like, inventory, product management, they also have the information, as well as your suppliers and your profit margins, so they know exactly how much money that you are making. so if you do have all of that information and you have nothing to worry about, they already have everything that they need from you. now, if you don't have a business bank account, um, i definitely suggest getting one, because they do require you to have one now. i've seen the money deposited into accounts that weren't business accounts, but doing that is going to tie you personally to these funds. you don't want to be tied personally to loans through your business. you want to make sure that you keep it in a separate account, away from your personal finances. i got my first shopify loan in 2019.. i want to say it was in the summertime. one thing i will say is like. the consistency that i had in my business with like marketing and advertising and steady growth is really what like led to me being able to get larger loans. so my income has tripled or quadrupled since um 2019, so long that they offered me high sugar quadruple as well, which is something that i'm very grateful for. um. i've used these loans to help me scale my business, to help me grow my business, and typically i pay them back within 90 days. you do get like a year or so. it just depends on how big your loan is. but the bigger your loan is, i think they give you a little bit more time. they're also very flexible with, like payment plans if you fall on hard times, um, or if, like your business poses, like i had another small shop that had a small loan for like 800 and that business ended up closing, um, and then they just let me pay like 150 a month until the loan was paid off. but i ended up getting a loan paid off in like two months, um, and then i wasn't disqualified or anything from any future loans, since i communicated with them and i paid it back. so that's just going to be like. the main thing that you want to make sure that you do is communicate, is try to pay back your loan, try to stay on top of it so that you can always have a good relationship with them. so for me it's typically like a two to three day process for a notification of qualifications, uh, for applying, me applying and then me getting approved for the loan. so it's typically it's really easy um process. once like they qualify you for it. now, at any time they can revoke the offer or like. just because they say that you qualify for offer doesn't mean that they're going to give it to you. um if you've had like, if you've done offer before, you've had consistent sales um and a consistent volume and income every month, more than likely you'll continue to qualify and they'll continue to give it to you. but if your sales are unsteady and they have like up and downs in them um between each of the different loans and you're always having difficulty paying those loans back, they more than likely would not continue to offer them to you. so that's just something for you to keep in mind too. um when i do apply for mine, they give me three different funding options and then like three different remittance rates. my remittance rates have ranged from like seven percent up to 17 of like the daily sales. i've only seen the 17 percent one for like when i get like thousands of dollars from them um and in the post in my artikle i'll tok about you know how um getting like the seven thousand dollars really helped me with my business um i was able to like outsource some stuff, um, work with different contractors, get some equipment and just continue to grow my warehouse and my business and stuff. so if you're on the edge- you know about getting shopify capital- continue to do your research. i've been watching videos of other people's experiences- is a great place to start. but also make sure you sit down and um, get an express excel spreadsheet and map out how you're going to use the money and how you're going to make that money work for you and how you can get on a on track to play that money back within like less than six months so that you can continue to grow without being in debt all the time. so overall, i would recommend it, if you can afford to pay it back, of course. so that's between doing your finances. it's been a great experience for me and my business. i don't have any complaints or anything bad to say about them, honestly, and i've worked with a few other lenders too, and this has been like one of my favorite ways to get funding for my small business. so if you found this video helpful, make sure you share it on social media. tag me or use my hashtag. touchlet me know down in the comments. if you have any more questions, i'll be happy to answer them for you.
Should You Accept Shopify Capital Loans?? (Do This Instead...) | Shopify Dropshipping 2021
okay, so clearly, you guys all know your own financial situations, but today i'm going to explain why i personally never take offers from shopify capital and show you other methods of funding your own stores. now, obviously, i have the capital to work with now. i've been doing this for years, but that wasn't always the case. so stik around for the next few minutes and i'll show you guys alternate ways to find your shopify stores without burning a hole in your wallet. also, if you're new here, my name's alex. i cover all things related to e-commerce, so if you find any value in this video whatsoever, be sure to subscribe for future content and, without wasting any more time, let's do this the best way i know how and jump straight into my laptop. okay, so, as i mentioned, we're gonna be going over funding alternatives for shopify capital so you guys can keep more of your own hard-earned cash in your pocket. so let's move on to the next slide and get started with that. okay, so some of you guys may be familiar with this screen. some of you may not have had this offer yet, but basically, after a certain amount of time on shopify, once you've scaled your store or been in business long enough, shopify will start offering you loan options so this can be used to hire more employees, expand your advertising budget, um, buy some office space, order more inventory, create more influencer, shout outs or anything really needed to run your business. that's what it's supposed to be used for, but, as you can see right here, there's different offers available to you. they'll actually increase over time as you continue scaling your store. but this is one of the stores that i've created recently and i've just started getting these offers. but, as you can see right here, they're offering ninety eight hundred. you have to pay back ten thousand five hundred fourteen thousand. you have to pay back fifteen thousand four hundred. so there are some cons involved. so on the next slide, let's go over the actual pros and cons involved with this. okay, so starting with the pros, there's actually no credit check involved with this. so a lot of times when you wanna take out a business loan or a car loan or a house loan or any type of loan where you're borrowing money from somebody, they check your credit to make sure that you are reliable and that you can pay it back. but with shopify capital, they actually go based on your history, the history of your store and your sales and everything like that, so they determine if you're eligible for a loan. another pro is the instant deposit. so if you get accepted for the loan, they'll deposit in your bank account right away and you can begin spending that money. another pro is the set payback amount, so the interest rate does not change over time. like i showed you, if you get like a ten thousand dollar loan, you have to pay back a certain amount later and then you pay over time through your sales. so you'll you'll have it set up a certain way, whether it's like ten percent of sales each day, fifteen percent, but over time you pay a certain percentage of your sales to actually pay back the loan over time, and it's simple to apply and repay. like i've just mentioned, the structure is really nice around it and there's very competitive rates versus bank loans. so while there's interest payments, you actually might be saving money compared to taking out a bank loan. but to me both of these aren't exactly ideal. i'll show you ways around this. and then there's zero hidden fees. uh, like i said, there's the fixed rate that you have to pay back and then there's a variety of funding amounts to meet your needs. so if you don't like any of the amounts they provide to you, you can actually speak with a shopify specialist and determine what would be the best loan amount for your own store and go from there. so those are some of the pros involved with this. i'm not completely ruling out shopify capital. i think it's great for some situations and it can really get you started if you pick a good loan amount and you understand the structure and everything behind it. but what i'm going to do is show you ways to avoid actually taking out a loan entirely so you don't have to pay back the interest payments over time, because a lot of times if you take out a loan and you start expanding your business, you might actually lose money with the interest payments. so, going over the cons, you're missing a percentage of your daily sales. so, like i said, if you're paying back 10 of uh the loan every day through your sales, you're missing 10 of your daily sales every day and that can add up. uh, you're still paying interest on the loan, but it's a fixed amount. uh, it's basically pay to play, so it sometimes includes a higher cost to borrow. so some of the lower amounts you're paying back less. but the more you borrow from shopify, the more you're gonna have to pay back. this is only available through shopify. so if you're running your store on any other platform and they don't have the service available or anything like that, like i know, paypal offers basically the same exact loan with very similar rates, but shopify capital is only through shopify, so you have to use and pay for their platform and go through all of that to use it, and then, uh, there's no flexible long-term finance rate. so it's literally just set up the way you saw it. you had to pay back that with a certain amount of your sales every day. and then the last con is the personal guarantee. so they actually have the right to seize your assets if you do not pay back this loan. so let's say you take out a shopify capital loan, you pay back like two, three days, and then you shut down your store and you think you know you're off the hook. you're never going to hear from them again. well, they might be coming for your car, your house, whatever you have a value they'll come after. if you do not pay back their loan. it is just like a bank: they can seize your assets. so now that we toked about the pros and cons. let's go over alternate methods of funding and ways that you can actually fund your own stores. okay, so these are alternate methods to fund your stores without taking out a loan or going through shopify capital or anything like that. you're using your own money even if you don't have any right now. so first step is obvious, but i always recommend saving up money before even starting your econ business. so you want to set aside a budget to you know order inventory if you're going to be shipping it out yourself. have an advertising budget so you guys continue testing, because in the beginning stages of an ecommerce store it's very easy to lose money and a lot of times you will set and follow a strict budget, like i just mentioned. so, testing products, your ad spend, your influencers, everything else. you want to track every penny at the very beginning. and that moves on to the third point: track every dollar and find ways to minimize your cost so you guys can cut apps, services that you guys don't need shipping costs in any aspect that you can in the beginning stages, because, well, every dollar matters, you guys should be reinvesting it in your own stores. another thing i recommend is always using a cash back credit card, but you can find yourself in some trouble with this. so let me explain. so beware: never overspend and always pay on time. so if you guys are using a cash back credit card, don't think of it as like a free money card or you know this and that. use it like you would with a checking account. only use money that you have and then you get the reward of the cash back at the end of the month. so you'll keep your spending habits the same. you'll spend on your business just like you would if you had a debit card, but at the end of the month, depending on where you're at with scaling, you could be finding a lot more cash in your pocket. like i said, you'll want to treat this as a checking account with a decent amount of cash back bonus, but do not blow your cash back every month. reinvest it in your business. so let's say you get like 500 your first month. i
SHOPIFY WANTS TO GIVE ME $25K😱PAYPAL WORKING CAPITAL + SHOPIFY WORKING CAPITAL
[Music]. if she girl, tatianna fee, and I am so excited today because this video is actually really important- to fall my business owners- I'm startups, not even in the startup process. you know six-figure company, seven-figure companies. this is actually some really good information that I just personally never shared. I'm a reason being because I usually teach it in my class and I won't go too much into detail. but I will go into detail so, like trying to stay, try to stay focused in this video, because I'm actually gonna be dropping a lot of great information, but it does get a little tiknical. so, if you have not already read the title, it says: you know, Shopify is trying to give me 19 thousand dollars in capital. how did I keep stopping by the give me 90 thousand dollars in capital? I don't know. I'm gonna name the video yet and I'm actually pulling up my Shopify online store right now because I want you to guys to see firsthand that this is not a lie. this is straight-up fact. shocked by it, it's literally trying to give me money for having it on its store, and that is what this video is going to be about. it's going to teach you how to be able to get money from these different platforms, third parties, payment, payment merchants- you know just all the different types of platforms. I have seen backward offering me funds a really easy way- no credit, actually just really easy- and I've been in business over here so this has been something that I've notiked as a trend in my business- from different paint merchants- and Shopify has just decided that they are going to join in and they got other kinks and screws out. so it actually is a new process for working capital. so I want to show you guys [Music]. all right, so it definitely took a while to focus, but, as you guys can see, this shot five capital now works with any payment provider. you're eligible for up to nineteen thousand dollars in funding for your current payment provider. so if you guys are not familiar with what capital is, I'm going to tell you and my terms. I'm actually going to Google what working capital is and you know serious legal interest returns. so working capital, in my opinion, is funding from different merchants were third parties for your business. you're able to use it for inventory. so, jnanis, whatever you want, because if you wanted to take the money about you car, you could. but what's so different in working capital that I notiked is that it comes out of your daily sales. so what working capital is is that say: for instance, I get to sell today, they're going to take whatever percentage that we agreed on, whether it be 18, whether it be 30, whether it be 45, I don't know. I've never seen a 45 percentage. but whatever percentage I mean we are going to take it from my daily sales, each cell that comes in. so working capital on google says the capital of a business which is used in its day-to-day trading operations, calculated as current access minus the current liabilities. so it also says it is a financial metric which represents operating liquidy available to a business, organization or other entity, including governmental entities, along with fixed assets such as plant and equipment. working capital is considered part of operating capital. so what it means is they're actually giving you the money to use for your operating funds in your business, if I am correct, which is how I took it. so let me do a little reversing for you guys. I got my first working capital about two years ago. me first, it was through PayPal, because how it went was: all my sales were directly going through PayPal and with all my cells were directly. I want to PayPal. PayPal literally sees all the money that I'm making. so, with everything, all the money that I'm making, they knew or they calculated how much they would be able to give me in working capital and how much implant I could pay it back. so they first offered me like, I think, up to $3,000. that was the first time and I was so I'm taking it because I don't know if you guys like me, but I grew up with the fact that in debt it's bad day and I was very scared to take it because I was like you know when I'm gonna be super bad, I'm gonna pay back. I was just worried. so, knowing that I needed it- because at that time China was going on a holiday and I sell hair extensions- I was like, okay, I'm trying to swing on on holiday, I need an inventory to hold me over. so I'm at a time it was kind of like God saying like I was like, okay, I need to take this working capital for my business. so I took it, took the $3,000 purchase inventory and how it went was is they was taking I think I did a 30% deal there and they put a certain amount of free paper repayment feet on top of me. so it was like three thousand I took out and I think I paid back like three thousand two hundred and they would take 30% of each sale that I was making that was going to pay about. so what it means is if Kimberly purchased something on my website for $258, PayPal automatikally deduct their 30% and put it back into the PayPal working capital that I need to pay back until it was on paid back, which usually took about six months at a time with the flow of my business. so now I think I have taken out about over at the $23,000 on PayPal and I'll upload the screenshot for you guys. that shows my history, but I think it was around I'm in the 20 thousands of how much I had taken out for PayPal and it's actually a great thing that I realized in my business, which is why I continuously use it. I think I've taken about eight loans at this time I'm actually taking. I've actually recently just took one out like a week ago, just because it's so easy to take out and it's so easy to pay back. I don't have to worry about our mom with a bank to make repayments. it's far American deducted without me having to do anything and I really like that option. so how did I get to the point where I shop right is our friend $19,000. so, if you guys don't know, on my web site we have you're able to check out with Cecily. you're able to check out with PayPal and you're able to check out. those are the only two options. so pick on. says those, so automatikally sees that I'm concerning them out because those are the only transactions that are going through when people don't use sense. or says it was a third-party company that allows people to depend, which is primarily what most of my consumers are using when they check out on my website. so people use as a sort of PayPal. for instance, it's only seeing about $12,000 to carry a month. they only think that I'm making $12,000 a month. says, along, the other hand, is seeing me make about, say, another $12,000, we'll just wrap. said 24,000. they're seeing me make another $12,000, so they only think I make $12,000 a month. the difference, though, is that all the payment is every order. I can't get seen by Shopify, so PayPal doesn't see every order. Nord essential, they only see the payment process, do them? but Shaka actually doesn't see every payment. that is the process through Shopify, because, no matter what, you have to check out my Shopify. that is where my words are filled, is where my website is. it is my third party platform. now. a long time ago, I think, Shopify offered me like $3,000 but they wanted me to use their payment provider, their payment processor, and the issue with that was that I had to, you know, pay power loan with paid. now I'll pick my working capital with me. and I was like, okay, well, if I take kind of paper, if I start using Shopify primarily as my payment processor- because you do have the option to use chakra 5 primarily, not even pimp up at all, and they don't charge a transaction fee, it's like, if I'm really good as you don't get charged of transaction fee or nothing like that. and they wanted me to use that. of course that's their platform, I would guess. of course they want to use that. so they wanted me to use it and I was like, how am I gonna do that? so I decided to still use students PayPal and, of course, since I'm still use, I said I would still use PayPal. I was not able to take out the Shopify capital.