eCommerce

How TikTok Shop Daily Advance Works

How TikTok Shop Daily Advance Works

TikTok Shop Daily Advance helps sellers get faster access to their revenue, making it easier to manage cash flow, restock inventory, cover expenses, and grow their business. Here's a quick breakdown of how it works:

  • What It Does: Provides daily access to earned revenue, simplifying cash flow management.
  • Repayment: A percentage of daily sales is automatically deducted to repay the advance - no manual effort needed.
  • Eligibility: Sellers need a U.S.-registered business, $1,000+ monthly sales for 90 days, and a TikTok Shop account in good standing.
  • Advantages: Immediate funds for inventory, marketing, and operations without waiting for long payment cycles.

Comparison with Onramp Funds:
While TikTok Shop Daily Advance focuses on advancing earned revenue, Onramp Funds offers flexible financing for broader business needs, such as inventory and marketing, with funding available within 24 hours. Both options automate repayments based on sales performance.

Feature TikTok Shop Daily Advance Onramp Funds
Purpose Access earned revenue Capital for growth
Funding Speed 1–2 business days Within 24 hours
Usage Limited to earned sales Flexible (inventory, marketing, etc.)
Monthly Sales Required $1,000+ $3,000+
Repayment Automatic from sales Percentage of revenue

Both programs are designed to help sellers maintain smooth operations and scale their businesses with ease.

Program Mechanics

Payment Structure

The Daily Advance program operates on a sales-based repayment model. A set percentage of your sales deposits is used to repay the advance. The repayment amount is calculated by reviewing factors such as your sales history, cash flow, and existing debt. This approach ensures repayments are directly linked to your business's performance, simplifying the process.

Payment Automation

Repayments are fully automated and adjust based on your actual sales. Since the system handles everything, there’s no need for manual input. It continuously monitors sales, cash flow, and debt levels to ensure advances remain manageable and avoid overextending your resources.

How does TikTok Shop's Daily Advance work?

TikTok Shop

Getting Started

To access TikTok Shop Daily Advance, you need a solid track record in compliance and performance.

Seller Requirements

To qualify for TikTok Shop's Daily Advance program, sellers must meet specific criteria. Your TikTok Shop account must be in good standing, free from policy violations or unresolved disputes. Additionally, you need to operate a U.S.-registered business with a valid Employer Identification Number (EIN) and maintain consistent monthly sales of at least $1,000 over a 90-day period.

Requirement Type Details
Business Status Active U.S. business registration
Sales History Minimum $1,000/month for 90 days
Account Health No violations or disputes
Payment Setup TikTok payment processing enabled
Banking U.S. bank account connected
Documentation Valid EIN and tax forms

You'll need to submit digital copies of your business registration, a U.S. passport or driver’s license (front and back), and a recent utility bill or bank statement for address verification. If you’re using a corporate account, ensure it’s linked to a dedicated business bank account.

Eligibility Check Process

Once you confirm your eligibility, TikTok guides you through a quick review process:

  1. Initial Assessment Go to the Finance section in your Seller Center dashboard and click on the Capital tab. The system will automatically evaluate your account based on factors like your seller rating (aim for above 4.7) and order completion history.
  2. Document Verification Upload the required documents through TikTok's secure verification workflow. All financial and business data is protected with AES-256 encryption.
  3. Account Review TikTok reviews your overall sales performance and account health. New shops must first complete a probation period of 300 successful orders before gaining full access to the program. During the review, TikTok checks key metrics like return rates (keep them under 15%), sales consistency, customer satisfaction scores, and payment processing history.

Once approved, funds are typically disbursed within 1–2 business days. The program doesn’t require a credit check, making it a viable option for newer businesses without established credit histories.

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Program Advantages

Better Money Management

TikTok Shop Daily Advance gives sellers quicker access to their earned revenue, making it easier to handle daily operations. The automated payment system removes the usual delays associated with fund clearance, allowing for smoother financial workflows.

"Onramp has simplified cash flow by automating everything: easy to request, set it and forget it payments - quick and fast!" - Torrie V., Founder and Owner of Torrie's Natural

With this streamlined process, sellers can:

Business Operation Impact of Quick Fund Access
Inventory Purchases Keep stock levels steady by reinvesting revenue
Marketing Spend Fund campaigns to drive growth
Operating Expenses Handle daily costs without waiting for payments
Emergency Costs Address unexpected expenses promptly

This efficient cash flow system also helps sellers make smarter inventory decisions, improving stock management and operational efficiency.

Stock Management

Having fast access to funds directly impacts inventory control. Sellers can immediately reinvest in stock, reducing shortages and ensuring smoother order fulfillment.

Key benefits include:

  • Keeping inventory levels consistent
  • Quickly responding to trends in product demand
  • Taking advantage of bulk purchase discounts
  • Better timing to minimize storage costs

By maintaining well-balanced stock levels, sellers can stay ahead of market demands and unlock growth opportunities.

Business Expansion

Daily Advance provides the flexibility needed to fund business growth initiatives. With steady access to working capital, sellers can confidently scale their operations.

"Applied, got our offer, and had cash in our bank account within 24 hours. Their Austin, TX based team was very professional and helped me deploy the cash to effectively grow our business." - Nick James, CEO Rockless Table

This program supports growth in critical areas:

Use of Funds Strategic Benefit
Inventory Expansion Restock and explore new opportunities
Marketing Investment Expand promotional efforts to reach more customers
Shipping & Logistics Improve fulfillment processes for better customer service

Whether it's replenishing inventory, enhancing logistics, or scaling marketing efforts, sellers can take advantage of opportunities without being held back by traditional payment delays.

Onramp Funds for TikTok Shop

Onramp Funds

Onramp Funds offers a revenue-based financing option tailored specifically for TikTok Shop sellers, building on the Daily Advance model.

Funding Options

Onramp Funds provides quick financing for TikTok Shop sellers without requiring equity or credit checks. Payments are tied to sales performance, offering a flexible way to support eCommerce growth.

Here are some key features:

Feature What It Means for You
24-Hour Funding Access capital within 24 hours
Revenue-Based Repayment Payments adjust based on sales
No Equity Required Keep full ownership of your business
Flexible Usage Use funds for inventory, marketing, or operations
Automated Payments Payments are automatically deducted based on sales

To qualify, TikTok Shop sellers must meet these requirements:

  • Have at least $3,000 in average monthly sales.
  • Be a legally registered business in the United States.
  • Provide read-only access to their store for performance evaluation.

Program Comparison

While TikTok Shop’s Daily Advance focuses on advancing earned revenue, Onramp Funds offers broader flexibility to support overall business growth. It complements TikTok Shop’s existing options, giving sellers more tools to scale.

Aspect Details
Application Process Easy online application with secure store integration
Support Services U.S.-based team offering personalized assistance
Usage Flexibility Funds can be allocated for various business needs

To help sellers make informed decisions, the platform includes a funding calculator. This tool estimates potential funding amounts based on store performance metrics, making it easier to plan for growth.

Summary

Main Points

TikTok Shop's Daily Advance program gives sellers instant access to their earned revenue, while options like Onramp Funds provide funding for business growth. These services help improve cash flow and encourage business expansion.

Aspect TikTok Shop Daily Advance Onramp Funds Support
Purpose Access earned revenue Capital for inventory and operations
Timing Immediate after order confirmation Funding within 24 hours
Usage Limited to earned sales Can be used for inventory, marketing, or operations
Requirements Active TikTok Shop seller $3,000+ in monthly sales
Repayment Automatic from future sales Percentage of revenue

These tools offer key advantages for TikTok Shop sellers:

  • Quick Access to Funds: Get money when you need it, without waiting for lengthy payment processes.
  • Flexible Investment Options: Use funds for inventory, marketing, or operational needs.
  • Streamlined Payment Handling: Payments are automated and tied to your sales.
  • Growth-Aligned Support: Funding scales with your business, without giving up ownership.

These programs help TikTok Shop sellers manage their operations more efficiently and grow their businesses with confidence.

FAQs

How does the TikTok Shop Daily Advance program decide the repayment percentage from daily sales?

The TikTok Shop Daily Advance program calculates the repayment percentage based on your daily sales performance. This ensures that repayment scales with your revenue, making it a flexible option for managing cash flow. The percentage is predetermined as part of the program terms and is automatically deducted from your daily sales, so you don't need to worry about manual payments.

What documents do I need to verify my eligibility for the TikTok Shop Daily Advance program?

Unfortunately, the specific documents required to verify eligibility for the TikTok Shop Daily Advance program are not detailed in the provided information. For accurate guidance, it's best to check directly with TikTok Shop or the program's official support team.

How does the TikTok Shop Daily Advance program manage repayments if my monthly sales vary?

The TikTok Shop Daily Advance program uses a revenue-based repayment model, meaning repayments are tied to your sales. If your sales fluctuate from month to month, your repayment amounts will adjust accordingly. This flexible approach ensures that you’re not overburdened during slower sales periods while still staying on track with repayments.

For sellers looking to manage cash flow more effectively, platforms like Onramp Funds offer tailored financing solutions. These options are designed to support eCommerce businesses by aligning repayment amounts with sales performance, helping you maintain financial stability even during unpredictable sales cycles.

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