Shopify Capital uses sales-based repayment, but its fixed cost and possible minimum payments may suit some merchants better than others. Comparing daily remittances, payment minimums, and fixed fees can save you thousands, especially if your Shopify store has seasonal or uneven sales.
This guide compares Shopify Capital with revenue-based financing from Onramp Funds, Wayflyer, and Clearco. It explains how each option handles repayment, fees, eligibility, and slower sales periods.
Shopify Capital repayment at a glance
Shopify Capital has two products: merchant cash advances and business loans. Your repayment terms depend on the product, location, eligibility, and the customized offer in your Shopify Admin dashboard.
With either product, you repay a fixed total amount by remitting a percentage of daily sales to Shopify. Shopify does not use a traditional interest rate. Instead, your offer includes a predetermined financing cost.
How daily remittances work
After you accept a Shopify Capital offer, Shopify deducts a fixed percentage of daily sales, then deposits the remaining amount into your bank account.
This daily remittance rate typically ranges from 10% to 17% of gross sales. Your actual percentage depends on the terms in your offer.
Repayment rises and falls with revenue. You remit more after a strong sales day and less after a slow one, which can provide breathing room during seasonal dips or an unexpected slowdown. You do not face a flat monthly installment that ignores current sales.
Shopify Payments calculates and collects each remittance automatically. You do not need to schedule transfers or track individual due dates.
Minimum payments and repayment deadlines
The two Shopify Capital products handle minimum payments differently. Merchant cash advances do not have a fixed repayment deadline; you repay through a percentage of daily sales, so slower sales extend the repayment period. Business loans may have minimum payment requirements and a maximum repayment term. If daily remittances fall below the required amount for a given period, you may need to pay the difference.
Your offer letter in Shopify Admin will identify the product and explain any minimums or deadlines. Read those terms before accepting. A merchant cash advance and a business loan can create very different obligations during a slow month.
Fixed borrowing costs and effective APR
Shopify Capital charges a fixed financing cost, sometimes stated as a factor rate, instead of a traditional annual percentage rate (APR). APR is the annualized cost of financing.
Suppose you receive $50,000 with a factor rate of 1.10. You will repay $55,000 in total, regardless of how long repayment takes.
The flat fee makes the total cost easy to identify. With Shopify Capital's merchant cash advance, however, faster repayment does not reduce that amount. You owe the same $55,000 whether repayment takes four months or twelve.
The effective APR depends on how quickly you repay the balance. According to NerdWallet's analysis of merchant cash advances, effective APRs on similar products often range from 20% to more than 50%.
Faster repayment produces a higher effective APR because you pay the same fixed fee over fewer months. That calculation can make a reasonable-looking factor rate more expensive than it first appears.
Shopify Capital vs revenue-based financing
Revenue-based financing, or RBF, ties repayment to a percentage of revenue. Shopify Capital's merchant cash advance falls within this category. Dedicated RBF providers may use different fees, collection schedules, and repayment terms.
Funding amounts vary by provider. Onramp Funds provides up to $500K. Shopify Capital typically provides $200 to $2 million based on store history. Wayflyer and Clearco use ranges that vary by market and merchant size.
Fixed fees also differ. Shopify Capital commonly uses a factor rate of 1.10 to 1.17. Onramp charges a flat fee of 2% to 8%. Wayflyer and Clearco use fixed fees, with rates based on risk profile.
Repayment percentages and schedules vary. Shopify Capital typically deducts 10% to 17% of daily sales. Onramp syncs repayments with your sales at a customized percentage. Other providers use similar daily or weekly remittance rates. Shopify Capital collects daily, Onramp aligns collections with sales activity, and Wayflyer and Clearco typically collect weekly.
Minimum payment requirements differ by product. Shopify Capital business loans may have minimums, while merchant cash advances generally do not. Onramp does not require minimum payments. Wayflyer and Clearco terms depend on the offer.
Maximum repayment periods depend on sales velocity for many RBF providers. Onramp and other RBF providers base repayment on sales speed rather than rigid deadlines. Shopify Capital business loans may have a deadline, often 12 months.
Early repayment impacts cost differently. Onramp structures fees so faster repayment reduces your effective cost. Early repayment does not reduce the total cost of Shopify Capital's merchant cash advance.
Personal guarantee and collateral requirements vary. Shopify Capital does not require a personal guarantee or collateral for merchant cash advances. Most RBF providers avoid personal guarantees, although individual terms vary.
Store and platform eligibility differs. Shopify Capital is available only to Shopify merchants. Onramp Funds is purpose-built for eCommerce sellers across major platforms. Wayflyer and Clearco also support merchants using multiple platforms.
Best revenue-based financing options for Shopify merchants
"Best" here means fee clarity, repayment flexibility, funding speed, eCommerce specialization, and the absence of personal guarantees or equity dilution. Every provider below uses sales-linked repayment without taking ownership in your company.
Onramp Funds
Onramp Funds is built specifically for eCommerce businesses. Onramp provides funding with a flat fee of 2% to 8%, without compounding interest or hidden costs.
Repayments sync directly with sales. You pay more when revenue is strong and less during slower periods, which matches the uneven way many eCommerce stores earn money.
Onramp securely connects to your store and reviews your sales data, then generates a customized offer, often within 24 hours. The application does not affect your credit score, and Onramp does not require a personal guarantee.
For Shopify merchants, Onramp offers straightforward pricing and repayment tied to actual store performance. Faster repayment can lower your effective cost.
Wayflyer
Wayflyer provides revenue-based financing for eCommerce and direct-to-consumer brands. It operates in multiple international markets, and funding can reach into the millions for established sellers.
Wayflyer reviews store performance data, including ad spend, revenue trends, and unit economics, then provides financing for a fixed fee. Repayments are typically collected weekly as a percentage of revenue.
The company also provides analytics tools to help merchants track marketing return on investment alongside their financing.
Clearco
Clearco, formerly Clearbanc, developed the revenue-share model for eCommerce funding. Clearco connects to your store and advertising platforms, reviews performance, and extends capital for a flat fee.
Repayment is tied to revenue and collected on a regular schedule. Clearco has changed its model several times since its founding, so confirm its current 2026 terms directly.
Clearco tends to focus on marketing and inventory financing. That focus may suit brands planning to scale paid customer acquisition.
Other relevant 2026 options
Shopify Capital remains an option if you want funding integrated into the Shopify platform. Payability provides daily advance payouts and financing for marketplace sellers, including Shopify merchants. Uncapped provides revenue-based financing focused on eCommerce brands in Europe and the UK. Pipe lets merchants trade future recurring revenue for upfront capital, which fits subscription-heavy businesses.
Fees, repayment terms, and eligibility rules vary by provider. Compare full offers before choosing one.
When Shopify Capital may be the better fit
Shopify Capital can make sense when your business runs entirely on Shopify and you want the funding process in one place. The offer appears inside Shopify Admin, and Shopify Payments handles repayment automatically. You do not need a separate application or third-party store connection.
It may also work well if Shopify has already approved you. Offers are invitation-only and based on your store's sales history and performance. If the total financing cost compares well with your other options, accepting an existing offer may be the fastest route to funding.
Stores with steady, predictable sales may find the fixed-cost model easier to plan around. When repayment speed remains consistent, the effective APR is less likely to change sharply.
When Onramp may be the better fit
Onramp is built around seasonal swings, inventory cycles, and marketing-driven revenue spikes. When your sales fluctuate, repayments move with them. A slower month produces a lower repayment instead of the same fixed monthly obligation.
Onramp's flat fee ranges from 2% to 8%. You know the total fee upfront, and faster repayment can reduce your effective cost of capital. That structure is easier to assess than a factor rate when you compare several funding options.
Onramp may be the stronger choice when you sell across multiple platforms and want one funding partner, need a customized offer based on your revenue patterns and growth stage, want to avoid personal guarantees and effects on your credit score, or want a team experienced in eCommerce financing, including inventory timing, advertising cycles, and seasonal demand.
Onramp can also work for merchants who have been declined by Shopify Capital or have never received an invitation. Onramp evaluates your store data independently, so Shopify's invitation-only criteria do not determine your eligibility.
See how Onramp works
Getting funded with Onramp takes three steps:
- Get your initial estimate
- Securely connect your store
- Receive funds
Most merchants receive a customized offer within 24 hours of connecting their store. The process has no lengthy paperwork, equity dilution, or personal guarantee.
Frequently asked questions
Is Shopify Capital a loan or revenue-based financing?
Shopify Capital has both products. Depending on your location and eligibility, you may receive a merchant cash advance, which is a form of revenue-based financing, or a business loan with defined repayment terms.
A merchant cash advance purchases a portion of your future sales. Your offer in Shopify Admin will identify the product that applies to you.
Does Shopify Capital charge interest?
Shopify Capital does not charge traditional interest. You pay a fixed financing cost determined when Shopify makes the offer, usually stated as a flat fee or factor rate.
You know the total repayment amount before accepting. Because that amount stays fixed regardless of repayment speed, the effective APR can vary considerably.
What happens when Shopify sales decline?
When revenue declines, daily remittances fall by the same proportion because repayment is tied to sales. Shopify Capital business loans may still require you to meet minimum payment thresholds during a downturn.
Refunds and chargebacks can affect the calculation because they reduce your net sales.
Can you pay Shopify Capital off early?
You can repay the remaining balance on a Shopify Capital merchant cash advance early. The total financing cost will stay the same.
Early repayment terms for Shopify Capital business loans may differ, so review your customized offer. Onramp structures fees so faster repayment typically lowers your effective cost.
Does Shopify Capital affect your credit?
Shopify Capital's merchant cash advance generally does not require a credit check or report to credit bureaus. Business loans may involve a credit inquiry, depending on your jurisdiction and offer terms.
For either product, Shopify primarily uses your store's sales performance to determine eligibility rather than your personal credit score.
