what is shopify capital

Published on: February 4 2023 by pipiads

Shopify Capital Review | What is it and how does it work?

i'm stephen with ledger crews and in this video i'm going to review shopify capital. feel free to subscribe to our channel and hit that notification button so you can get more content like this [Music]. so shopify capital provides what's known as a revenue-based lending, where they provide a loan and get paid back as a percentage of daily sales. what this means is that you'll get a lump sum of money in a form of a loan that you could use for inventory purchases, marketing something else, and you're gonna pay that back as a percentage of your daily sales. i spoke with a shopify capital specialist and he provided some insights. let me tell you about those. they look at the data from your shopify store and use ai to determine how much to offer. now they're unclear on what goes into this, but i can make some guesses. i would assume that they're looking at cells over time. they're comparing to prior periods. they may be looking at cell's velocity. they may be looking at different metrics on what's being sold. but it's somewhat of a black box because shopify has lots of data. they're going to be looking at trends across various accounts, so they probably look at your account versus comparable stores. they're going to be looking at macro economic trends like government interest rates, inflation, etc. but it's this big black box. you don't know how it works. they just are crunching your data to come up with that offer. there will typically be different options of lending with different repayment rates, which i'll go through later. i was told the rates are determined by the factors that their ai looks at, but you'll see that the the rates change as the size of the loan changes, these loan offers will change, so what you see one day might change the next. now, key note on shopify capital: it's only available in canada, the uk and select states in the united states. the state will be based on the business from which you're operating from, which is probably the one that you were putting in shopify for. i wasn't able to find a list of states on shopify's website, but a recent fundera artikle, as of june 2022, listed these 14 states. so if you're one of these 14 states, awesome. if you're not, wait and see. shopify capital is available to eligible merchants using shopify payments, as well as eligible merchants using third-party payment gateways. that said, they recommend shopify payments, as they state they'll have more insights to give an offer. not sure what that means, but they're probably going to have, take the data from your payment processing and calculate that as part of the the process. my guess is they're looking at return chargebacks, that type of stuff, and if they're using shopify payments, it's a little bit easier to crunch that data. not every store will be eligible, so if you don't see an offer, it means that shopify doesn't feel like you're qualified and again it's a black box, so you don't know. there's some interesting aspects of shopify capital. first, they don't require personal guarantees or credit checks. this is great for newer businesses or those with poor business or personal credit, because traditional lenders will usually require those things. that said, it probably means that you're paying more for this loan and you'll see that when we go into the terms. the shopify capital specialist i spoke with says they don't like to have loans out for more than 10 months, so be aware of that and that will probably go into the calculations. if you look at the numbers now, an interesting aspect is that 85 percent of loan payback, a merchant is open for more funding and the loan doesn't get stacked, so there's no double payback rate, just means you can create an additional loan and pay it back separately. loans will be deposited within three to five days of a request being reviewed and approved. so even though you have that offer, they're still going to go back and probably do an additional review process, which again, is a little bit of a black box. all right, let's dive in and look at the details of an offer from one of our businesses, soltaskana. this is a business that we own, so we're able to show you some details. if you're eligible for shopify capital, you're going to find an offer on your home page. if you scroll down in your store, you're going to see something like this: let me go ahead and click on this. here's my offer. you're going to see three different loan amounts. you're going to see three different daily sales repayment rates and, obviously, three different amounts of interest. if you want to go ahead and proceed with the loan, you click on the request button and go through the process. but let's break down the numbers and see what this means. all right, let's break the numbers down. so i've got my loan amounts, i've got my payback amounts and i've calculated the interest for each of those offers and then i've calculated what would the interest as a percentage of the loan amount be? so you can see, the more that you're taking out. there's more risk and therefore the interest rate is higher. i have assumed, let's say, it's a 10 month payback. this is what the effective apr annualized percentage rate would be. now, in reality, based on the velocity of your store, you're probably going to pay these back faster and so your apr could be effectively higher. so you got to consider that these are not cheap loans. let's take a look and compare these rates to what we're seeing right now at this time, which is july 2022.. all right, let's compare these rates, which are around 9 to 15 percent apr. compare that to, say, an sba loan. again, this is being recorded june, july 2022. you can see that sba loan rates are seven to nine percent or 7.5 to 9.5 percent. the difference is the length of the loan and the amount of the loan, so these are definitely cheaper loans. if i were to look at other things, like lines of credit, you would find that they will be probably somewhere in between. they could be higher than a shopify loan. lines of credits can be all over the place, so take that into consideration. the reason why a lot of sellers do shopify capital or other revenue based loans is simple: traditional banks don't like to lend where there isn't collateral like a building or a vehicle. inventory can be an exception, but that's like the only asset that you can lend against with a traditional ecommerce business, unless you have those other types of assets, which a lot of them don't. traditional banks will look at a lot of information like business credit, personal credit, business financials etc. and shopify capital does not. traditional banks will likely require personal guarantee, meaning you are personally on the hook to pay back the loan if the business cannot. for all of these reasons, shopify capital can be a good option, as it is a much simpler loan, uh, to obtain as well as pay back. that said, there are costs of the loan, as we saw. i would be very thoughtful on using shopify capital. grow your business, because you're going to pay a lot to do that and you probably want to look at more traditional lending that's going to come at a lower cost of capital. over time. you want to make sure that that lending is driving growth and or profitability, either in the short term or the long term, or this loan can become a burden for you. with this in mind, shopify is best used for critikal things like inventory purchases or advertising that has a quality return on ad spend. so bottom line is: can be useful, but be very thoughtful about how you shopify capital. alright, if you found this video helpful, like it, ask me a question in the comments. i'm happy to answer it and be sure to subscribe to our channel, where you'll get more content like this. and if you need help with your ecommerce accounting, reach out to ledger gears via the link below.

Table of Contents About what is shopify capital

What is Shopify Capital: Shopify Capital Explained
$23K Shopify Capital Offer | Watch Before You Accept Cash Advance Loan
Shopify Capital Review... What is Shopify Capital? How does Shopify Capital Work?
SHOPIFY OFFERS LOANS!! | Is Shopify Capital A Yes Or No For Small Business Owners?🤔
Shopify Capital Review: I received $22k+, here’s my experience.
Getting Funding For Your Business: Shopify Capital

What is Shopify Capital: Shopify Capital Explained

[Music]. what's up everybody. it's jamie here from shopify masterclass, and today we're going to cover shopify capital. and what is it? in summary, shopify capital allows shopify users to get hassle free and relatively free and low cost business financing for their shopify stores. this can be important, especially when you're starting out or if you want to scale and you want to get that type of funding so you can spend more on your marketing inventory, whatever costs you deem necessary. shopify offers two types of short-term business financing: there's cash advances and short-term loans. one important thing to note is that shopify capital is limited to the geography you're in. you really have to be in the uk, the united states or canada, and within, though, there's different type of restrictions as well, so it's important to check this through before you consider applying. one thing to note is that none of this is legal advice. here. you have to contact your shopify loan agreement and a lawyer if you want any legal advice there. before we get into it, i just want to quickly thank our sponsor. discover profit calc, the affordable and easy to set up shopify app that crunches your numbers in just one click. it automatikally syncs with all your accounts and expenses to calculate your profit, displaying everything in an easy to read dashboard so you understand your business in real time. start for free on the shopify app store today. there are two types of business financing for shopify capital. the first one i'm going to go into is merchant cash advances, and so you should check again if this is available in your region. so what merchant cash advantages are is: shopify is essentially going to fund a percentage of future sales. so this is going to be: they're going to give you money for ace loan or of some type, and it's going to be a cash advance, and the way you're going to pay this back is going to be a percentage of your sales. so over time it's going to collect it on a daily basis. let's say it's 10 of your sales sell 100 worth that day. 10 is going to go to fulfilling that loan from the cash advance. this is going to be done until your cash advance is fully paid off. one thing to note about this type of cash advance is that it doesn't have a payback date. it's essentially going to happen over time until that amount is paid off. there is no date, such as due in three months or due in six months. shopify capital offers a wide range of amounts for this type of advanced. it can range from 200 usd all the way to a million dollars usd, based on your shopify store and the risk they associate with it. the second type of loan from shopify: short-term loans, and this is where shopify gives the merchant or the merchant company a lump sum and then you pay that back with a set due date and interest payments over time. these payments might be collected on daily or weekly basis depending on the terms of the loan. for example, shopify might loan you five thousand dollars with a boring cost of 650 and a repayment rate of 10. the 5 000 amount received would be delivered to your business bank account and shopify capital would receive 10 of your daily sales revenue until the 5 650 total owed is repaid at the end of the 12 month term. each of the loans- 60 day milestones- would have a minimum payback amount of 941.16 the total amount of owed. if you reach the first 60-day milestone and we paid only 800 through your daily repayments- then the remaining 141 dollars would be debited to your account. this functions very similar with the take rate of daily sales, but there is a fixed date for the repayment that you will have to make up if your daily sales do not meet that amount. in terms of the range, it's very wide and it is the same as the cash advance, although it would depend on your region. generally it's between 200 and 1 million dollars- usd for short-term shopify loans. overall, these can be really advantageous for your store, as you can give the capital that you need to grow your store in the way you think is best. capital can often be a limiting factor in e-commerce. this is for ad spend or inventory, as a payback period can really depend, and having that extra cash will allow you to finance growth earlier. overall, the pros of shopify capital or is that there's no credit score requirements. rates tend to be inexpensive over time comparisons with other loans you could get. there are no extra fees. applicants can be quickly qualified and the application process is quite easy, as shopify has all your store data and can help judge it very quickly based on your revenue numbers so far. the cons of this are that the repayments are required quite frequently- this could be on a daily, weekly or monthly basis, depending on your loan- and no long-term financing options are available to apply for these loans. you want to go to the shopify capital portion of the website and you can fill out the application there. it will require you to log in with shopify and so on. this concludes the video on shopify capital. if you enjoyed this video, i love if you leave a like below. have any questions, leave a comment and if you haven't yet, please subscribe, as it really helps the channel out. thank you for watching. [Music].

$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.

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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.

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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: 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.

Getting Funding For Your Business: Shopify Capital

some people like to be like: ah, i saved my money, i use all my money. good for you. [Music]. hey, slave bags, we back with another video. y'all know i like to jump right into it. so we're going to tok about money again. this time it's going to be some business funding, it is shopify capital, and a lot of these things apply to other companies that do the same business model when it comes to funding. so what is shopify capital? shopify capital is somewhat it is- it's not even somewhat it's- a business loan, um, but it's not your traditional business loan where you have to show all these w-2s and tax returns and be in business for two years and all that. y'all know it's like if, if i got to show you i'm making money, why would i need money type thing so, or a substantial amount? so what shopify does is they will evaluate your sales over the course of some months. i want to say it's like three to six. they don't really have too much information on exactly how to qualify because it is an invite only type of situation. they will offer it to you when they feel you ready, pretty much, but it doesn't have to be six figures or anything like that. my first shopify capital probably was like maybe 450. so they go off what they think that you can handle and repay back within the amount of time that they uh select, which is, i believe, a year, i think it's 12 months, um, and then you pay it back by a percentage of your sales. so if you don't make any sales that day, you don't pay any money that day, but you do have milestones where you have to pay a certain amount every 60 days. so, um, a lot of people wonder about it because i know a lot of people have shopify. so they be like: oh i don't know if i should use it or this is this, and that i say: go for, i'm off and use other people money if i can make me money, because even after i pay it back i should have still made some money off of it to further advance my business. now, when i say, don't offer it if you know your sales is not where it needs to be to be able to repay that loan. so nasa routine shopify is gonna know whether or not you can pay it because they've been watching your trends in your sales. so you usually don't have nothing to worry about unless you take that money and close your store, what you shouldn't be doing. please, please, don't do that, cause you're gonna own the people that money. so to me is a very good way, a easy way. um, i don't believe they run crazy. i'm not gonna lie. i don't believe they run credit. i think they just have to run to verify you are who you say you are. but i do not believe this is a credit check situation, um, unless i think. let me say this: i've never gotten an inquiry on my bank or anything like that asking about shopify. now, what i do think is they may do a soft pull to make sure you don't do no fraud or not like that. i think they may do some little research on that end to make sure that they're not getting they sell in too deep. but i do not remember a credit check or anything like that. they went off my ein as well as my social, but i never got any alerts about a credit check. it was solely off the sales of my business. um, again, it is invite only. so, um, i know sometimes they have, like, they have a link somewhere that says: see if i qualify, but nasa, have a 10 if it wasn't in your home page, uh, analytiks or whatever like that- to say, hey, we're offering you this national team. you probably don't qualify, um. but again, like i said, when i first started, they were doing very, very small amounts and i'm pretty sure they probably would still do small amounts, because that's why they can make some extra money. what can they be used for? now? because, totally honest, they don't check what you use it for. i'ma be honest, they don't check, but i damn so highly recommend you use it towards your business because you need to be invested so you can pay this money back because they don't want theirs. okay, they're going to want there. so if you eff it off, that's between you on shopify, don't, don't, don't mess it up, because they give very large amounts, very large amounts. once you show yourself worthy- pretty much, show them sales and stuff like that- maybe they get very large amounts. okay, i'm gonna show y'all, i'm gonna show y'all, man, i'm gonna show y'all my whole journey with doing shopify payments. uh, shopify capital, my sorry, um, just go ahead in the next pocket. you have to have shopify. you have to have shop pay activated on your shopify to be able to qualify. if you don't have sha pay on there, they will not offer it to you and you cannot deactivate it once you have your loan. so it's very important to have chape. chape has come a long way, especially when it comes to the hair industry. they have allowed to take payments as well as they have the for what they they're. they're the lowest interest rate when it comes time, interest rate, processing rate. um, when it comes to doing the four-way payments, if i'm not mistaken, across the board they're about five or six percent. anybody else is like ten, eight. you know stuff like that. so i feel like they're trying to get to a point where they couldn't eliminate having any other uh parties on their uh websites because they're just that good as far as you know the process and racist stuff like that. so shopify, look, shopify payments, shop pay all that good stuff. it is required to be able to be qualified. another thing: it does not have an interest rate. i see a lot of people get the repayment percentage confused with the interest rate. there is no interest rate. there is no interest rate. it is a flat charge. so let's say, i'll try to bring a screen up. let's say i borrow three thousand dollars. they're gonna say, okay, we're gonna loan you three thousand five hundred. it's gonna be three. you you know we're gonna loan you to three thousand but you're gonna pay us back three thousand five hundred. so the five hundred dollars would be what they make off the loan. it is not an interest rate. the the percentage number that you see is the percentage of your sales that go back towards the loan. so they that percentage can range from anywhere between eight and twenty percent. it might go even higher according to how much you borrow. now, mines has never been more than 17, so uh, and i think my lowest may have been like nine or something like that. so 10 to 20 will go back to your sale, go back towards paying your loan. so there's no flat. oh, i got to pay 200 a month or you know stuff like that. there's no flat thing. so if you made the sale- let's say you missed- this month you may not make the milestone, you need it. but next month you over, you over cap it. but if you don't, if you don't make the sales, they're going to want a payment of the difference of what your milestone is. so every milestone is 60 days. so let's say every 60 days you're supposed to pay them back a thousand dollars. that means you have to make enough money that 17 of your sales gave them a thousand dollars, that or that six in that 60-day milestone, um. so if you don't, let's say you only made 700.. on that day that is due, they're going to take that money out. whatever accounts you got hooked up to shopify, they're going to get their money. you got to reach the milestone because it has to be paid off in 12 months and it has to be paid in these increments, in these milestones. so that was a lot it is. if i, if i'm confusing it anyway, i'm trying to be as clear as i possibly can, because it is, it can get confusing. but once you see and grasp the concept of, you go, oh, it's easy. it's easy because now i'm not thinking about: okay, on the 15, i got to pay this on this on no, it automatikally come out before i because it literally they get their money before i get mad type situation. it literally comes out automatikally like autopay and that's it. um. so please keep that in mind. when it comes to the payback, there is no interest rate. the percentages you see is definitely the percentage is going to come out of your sales to pay them back. unfortunately, this um is only available in the united states. i know we shop on the uk and canada and things like that, but t