Shopify Capital Merchant Cash Advances and Loans in 2026: Features Explained

Updated October 2026

Shopify Capital gives eligible Shopify merchants a lump sum that is repaid automatically as a fixed percentage of daily sales, with no payment taken on days without sales. In the United States, Shopify Capital funding is a loan issued by WebBank, while merchant cash advances are offered in the United Kingdom, Ireland, the Netherlands, and Spain. Shopify also offers Capital Flex, a continuous funding option for US merchants with fees charged monthly on the outstanding balance.

This guide explains how each Shopify Capital product works in 2026, what it costs, who is eligible, and how it compares with multi-channel working capital from Onramp Funds.

How Shopify Capital Funding Works

A merchant cash advance is a type of financing where a business sells a portion of its future sales in exchange for upfront capital. In the United Kingdom, Shopify’s Help Center describes its merchant cash advance as selling a portion of your future sales, with funding provided by YouLend under a receivables purchase agreement. You receive a lump sum for a fixed fee, and a set percentage of each day’s gross sales is remitted until the total is paid.

In the United States, Shopify’s Help Center states that all funding through Shopify Capital is issued by WebBank and is provided as a loan. Repayment still works as a percentage of daily sales, but the product is a loan with its own fee options and minimum payments. According to Shopify’s eligibility page, loans are offered in the United States, Canada, Australia, France, and Germany, and merchant cash advances are offered in the United Kingdom, Ireland, the Netherlands, and Spain.

Key Features of Shopify Capital in 2026

• Offers by invitation: Shopify emails eligible merchants and shows a prompt in the Shopify admin. Offers are generated and recalculated daily, and an offer to apply does not guarantee funding.
• Sales-based repayment: A fixed percentage of daily sales goes toward the balance, and no payment is taken on days with no sales.
• Funding speed: Shopify says applications are usually reviewed within 1 to 3 business days, and the Shopify Capital page says funding can arrive in as quick as two business days, if approved. Daily repayments start within two business days after disbursement.
• Funding size: Shopify advertises funding up to $2M (USD), with offers made in the merchant’s local currency.
• Credit: Shopify says applying does not involve a credit check or affect your personal credit score.
• Security: For US loans, the agreement includes a security interest in business assets, and a UCC-1 financing statement may be filed. Shopify describes this as a secured loan.
• Repayment source: For US loans accepted on or after March 9, 2026, repayments are collected from the Shopify Payments balance. If collection fails after several attempts, the repayment is debited from the business bank account (except for merchants in Texas, where no bank debit is made). Earlier loans continue to use bank account debits.

Fixed-Fee and Monthly-Fee Loans

US merchants choose between two loan repayment options, according to Shopify’s US Capital help page.

• Fixed-fee loan: You pay a single fixed fee for the duration of the loan. The total cost is known upfront and does not change with how fast you repay.
• Monthly-fee loan: You are charged a fixed fee per month on top of percentage-based repayments, so the total cost depends on how long the balance stays active. Repaying faster lowers the cost.

Shopify Capital loans carry two minimum payments. Merchants must repay 30% of the total loan by the 6-month mark and 60% of the total payment amount by the 12-month mark, and missing these minimums may result in an event of default. The Shopify Capital page states a maximum repayment term of 18 months.

For merchant cash advances, Shopify gives this example on its UK page: a £5,000 advance with £5,650 in total remittances, collected at 10% of gross daily sales. The UK page states there is no deadline for remitting the total, and the total is not reduced if you remit the full balance early.

Capital Flex: Continuous Access to Funding

Shopify announced Capital Flex for US merchants in its changelog on November 5, 2025. According to Shopify’s Capital Flex page, it provides continuous access to funding for merchants with ongoing growth needs.

• Draw funds whenever you need them, up to your limit. As you make payments, more funds become available.
• Monthly fees apply only to the outstanding balance, and manual payments reduce fees.
• Repayment rates can be adjusted to match business cycles.
• The funding limit updates weekly based on factors such as store performance, with no renewal thresholds.
• One application gives ongoing access, with no need to reapply for future draws.

Capital Flex eligibility requires a US-based business with a US bank account, at least $50,000 USD in gross merchandise value over the trailing twelve months, a low or medium risk profile, and an active Shopify plan in good standing. Trusts and partnerships are not eligible.

Eligibility and Access Requirements

There is no open application for standard Shopify Capital offers. Shopify determines eligibility automatically through underwriting and notifies eligible merchants. The Shopify Capital page says merchants need to sell on Shopify for at least 90 days. Shopify’s eligibility page lists factors including:

• An active Shopify plan and a store operating for at least three months
• Sales performance, including sales volume, frequency of sales days, and order count
• Chargebacks, disputes, and returns
• Payment history with Shopify, including failed debits
• Use of Shopify Payments or an approved third-party payment provider
• Store location, currency, and a bank account in the same country
• No prohibited products, no reserve issues, and no recent listing or sale on Shopify Exchange

Early Repayment and New Offers

US merchants can make a manual payment of any amount over $1 or pay off the full balance. Shopify’s Help Center notes that the cost of funds remains the same even if you pay off the entire balance, which matches how fixed-fee loans work, while monthly-fee loans cost less when repaid faster. Shopify also states that making a payment does not automatically qualify a merchant for more financing. New offers depend on current eligibility.

Understanding the Effective Cost

A fixed fee is easy to read, but it does not show the annualized cost. Effective APR represents the annualized total cost of capital, including all fees and the time the balance is outstanding. With a fixed fee, a faster payoff spreads the same fee over fewer days, so the effective APR rises even though the dollar cost stays the same. Model your offer against strong, average, and slow sales months, and check the 6-month and 12-month minimums, before accepting.

Advantages and Limitations

Advantages:

• Offers, acceptance, and repayment tracking happen inside the Shopify admin
• Repayment follows daily sales, with no payment on zero-sales days
• Applying does not involve a credit check, according to Shopify
• A choice of fixed-fee or monthly-fee pricing for US loans, plus Capital Flex for ongoing needs

Limitations:

• Access depends on Shopify’s invitation and eligibility review
• Repayment draws from sales through your Shopify store, so revenue on channels outside Shopify does not count
• US loans are secured and carry minimum payments at 6 and 12 months
• Paying a fixed-fee loan early does not reduce the fee

Use Cases for Shopify Capital Funding

Shopify’s Capital help page lists investing in inventory, launching marketing campaigns, renting a physical retail space, and hiring staff as uses for funding. Common examples include:

• Restocking inventory ahead of seasonal demand
• Funding marketing before a major campaign
• Covering supplier costs or cash gaps during slow months

How Onramp Funds Compares

Shopify Capital fits merchants whose sales run mainly through Shopify. Sellers who also sell on Amazon, Walmart, eBay, or other channels may prefer funding that looks at all of their revenue. Onramp Funds provides working capital to Shopify sellers and multi-channel sellers.

• Funding size: Onramp Funds sizes funding to your combined sales, stated in your offer. Shopify Capital sizes offers on Shopify store performance.
• Cost: Onramp Funds charges a fee as low as 9% of the funded amount ($4,500 on $50,000), flat, disclosed upfront, non-compounding, longer terms cost more. Subject to credit eligibility, and rates and terms may vary. Shopify Capital uses a fixed fee or a monthly fee.
• Speed: With Onramp Funds, funds typically arrive in one to two business days. Shopify says funding can arrive in as quick as two business days, if approved.
• Repayment: Onramp Funds offers a share of daily sales, a fixed schedule over 1 to 12 months, or a rolling cash line. Shopify Capital repays from a percentage of daily Shopify sales.
• Eligibility: Onramp Funds requires $10,000 average monthly sales, six months of selling history, and a legal US business entity, with no personal credit check to see your offer. Shopify Capital is by invitation based on Shopify store performance.

For a closer look at repayment mechanics, see our guide to comparing Shopify Capital repayment with revenue-based financing. For a summary of what Shopify Capital loans offer growing stores, see the benefits of Shopify business loans for scaling online stores.

Frequently Asked Questions

How does Shopify Capital repayment work?

A fixed percentage of your store’s daily sales is applied to the balance, with no payment on days without sales. US loans also have minimum payments of 30% of the total by the 6-month mark and 60% by the 12-month mark.

Does Shopify Capital offer merchant cash advances in the United States?

No. Shopify’s eligibility page lists loans for the United States, Canada, Australia, France, and Germany, and merchant cash advances for the United Kingdom, Ireland, the Netherlands, and Spain. US funding is issued by WebBank.

Who is eligible for Shopify Capital?

Eligibility is set by Shopify’s underwriting. Shopify says merchants need to sell on Shopify for at least 90 days, and it weighs sales performance, chargebacks and disputes, payment history, and store location. Eligible merchants receive an email and a prompt in the Shopify admin.

What does Shopify Capital cost?

US merchants choose a fixed-fee loan, with one fee for the life of the loan, or a monthly-fee loan, where a fixed fee is charged each month the balance is active. Capital Flex charges monthly fees only on the outstanding balance.

How does Capital Flex differ from a standard Shopify Capital loan?

A standard loan is a single lump sum. Capital Flex gives ongoing access to funds after one application, so you can draw, repay, and draw again up to a limit that updates weekly.

Does Shopify Capital check my credit?

Shopify says applying does not involve a credit check or affect your personal credit score. Eligibility is based on store performance.

When should a merchant choose Shopify Capital versus other options?

Shopify Capital suits sellers whose revenue runs mainly through Shopify and who want funding inside the Shopify admin. Multi-channel sellers may find Onramp Funds a better fit, since funding is sized to combined sales and funds typically arrive in one to two business days.