Need funding for your Shopify store? Here's what you need to know in 2025:
- Shopify Capital: Offers up to $5 million with no credit checks. Repayments are a fixed percentage of daily sales, but it's only available to Shopify users.
- Revenue-Based Funding: Flexible repayment tied to your sales, with fast approval (as quick as 24 hours). Great for businesses with fluctuating income.
- Business Grants: Free money for specific initiatives, like the FedEx Small Business Grant or NAACP Powershift Grant.
Quick Comparison:
| Funding Type | Repayment | Approval Time | Cost | Best For |
|---|---|---|---|---|
| Shopify Capital | % of daily sales | 2 business days | 10-13% fee | Shopify-exclusive funding |
| Revenue-Based Funding | % of revenue | 24-48 hours | 2-8% fee | Flexible cash flow needs |
| Business Grants | No repayment | 1-3 months | Free | Special initiatives |
Key Takeaway: Choose funding based on your store's performance, cash flow needs, and growth goals. Whether it's Shopify Capital, revenue-based funding, or grants, the right option can help you stock inventory, scale marketing, and adopt new tools.
Shopify Finance: Unlock Growth with Smart Funding & Cash Flow Tools
Shopify Capital: Built-in Funding Options
Shopify Capital provides funding specifically designed for Shopify merchants. By 2025, this program has distributed over $5.1 billion to merchants.
Main Features of Shopify Capital
Shopify Capital offers two types of funding for eligible merchants:
| Feature | Details |
|---|---|
| Maximum Funding | Up to $5 million available |
| Funding Types | Business loans and merchant cash advances |
| Repayment Method | Fixed percentage of daily sales, approximately 10% |
| Factor Rates | 1.1 to 1.13 (10-13% fee on borrowed amount) |
| Geographic Availability | US, Canada, UK, and Australia |
| Funding Time | Funds can be received in as little as 2 business days |
For merchants in the US, loans offer flexible repayment options, including fixed or monthly fees. Merchants are required to repay at least 30% within six months and 60% within a year.
How to Qualify for Shopify Capital
To qualify for Shopify Capital, merchants must meet specific criteria. These include:
-
Store Performance
- Active Shopify subscription
- At least 3 months of operation
- Strong sales and order history
- Consistent customer engagement
-
Account Health
- Clean payment history with Shopify
- Low chargeback and dispute rates
- Adherence to Shopify's Terms of Service
- No prohibited products or services
-
Technical Requirements
- Store currency set to USD
- Approved payment provider integration
- Not listed on Shopify Exchange
Benefits and Drawbacks
"With Shopify Capital, our revenue increased by 40% to 50% - a direct result of expanding our inventory with new products." - Jordan Lee, Owner, The Public Pet
| Benefits | Drawbacks |
|---|---|
| No credit checks required | Higher borrowing costs than traditional loans |
| Quick funding (as fast as 2 business days) | Daily deductions may impact cash flow |
| Automated repayment system | Only available for Shopify users |
| No personal guarantee needed | Not available for trusts or partnerships |
| Offers tailored to sales performance | Funding amount tied to store performance |
Shopify Capital has received positive feedback, including an A+ rating from the Better Business Bureau. However, merchants should carefully evaluate whether daily repayments might disrupt their cash flow.
For those interested, the Finance page in the Shopify admin is the place to explore funding offers. In the US, all Shopify Capital funding is issued by WebBank.
Other Funding Methods for Shopify Stores
Shopify sellers looking for funding in 2025 have more options than ever. While Shopify Capital remains a popular choice, alternatives like revenue-based funding and business grants can better suit different business needs.
What Is Revenue-Based Funding?
Revenue-based funding lets you repay a percentage of your store's revenue, often starting as low as 1%, instead of fixed monthly payments. This approach ties repayment to how well your store is performing, offering more flexibility.
| Feature | Traditional Loans | Revenue-Based Funding |
|---|---|---|
| Repayment Structure | Fixed monthly payments | Percentage of revenue (as low as 1%) |
| Approval Process | Credit score focused | Based on store performance |
| Collateral Required | Usually yes | Usually no |
| Processing Time | Several weeks | As fast as 24 hours |
| Payment Flexibility | Fixed schedule | Adjusts with sales volume |
"Onramp offered the perfect solution with revenue-based financing to secure the capital we needed to invest in inventory and pay it back at a reasonable time frame once we made sales. The process was quick, easy, and the support was great."
Business Grants for Shopify Sellers
Grants are another great funding option, especially for Shopify merchants from underrepresented communities. Here are some notable programs:
- Federal Programs: The Small Business Administration (SBA) supports businesses through grants like the State Trade Expansion Program (STEP) and the Women-Owned Small Business Federal Contract program.
- Corporate Initiatives: Companies like FedEx and Venmo offer grants tailored to small businesses:
- FedEx Small Business Grants Program
- Venmo Small Business Grant ($20,000)
- Cartier Women's Initiative Regional Awards (up to $100,000)
- WomensNet's Amber Grant ($10,000 monthly)
- Specialized Programs: In 2024, the NAACP launched initiatives such as:
- NAACP Powershift Entrepreneurs Grant ($25,000)
- Keep it Local Business Fund ($5,000)
- Power Forward Small Business Grant ($25,000)
Comparing Funding Options
Each funding method has its pros and cons. Here's a quick breakdown:
| Criteria | Revenue-Based Funding | Traditional Bank Loans | Business Grants |
|---|---|---|---|
| Cost | 2-8% fee on funded amount | Fixed interest rates | No repayment required |
| Speed | 24-48 hours | Several weeks | 1-3 months |
| Requirements | $3,000+ monthly sales | High credit score, collateral | Specific eligibility criteria |
| Best For | Inventory, marketing | Long-term expansion | Specific business initiatives |
| Risk Level | Lower (flexible payments) | Higher (fixed obligations) | None (no repayment) |
Revenue-based funding is increasingly popular among eCommerce businesses due to its flexibility and alignment with sales patterns. Approval rates for these alternative funding sources now surpass those of traditional lenders, making them an attractive choice for Shopify merchants in 2025.
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Getting Your Store Ready for Funding
Organizing Financial Records
Even though Shopify Capital directly accesses your store data, it's important to have your financial documents organized to showcase your business's financial health. Keep these updated and ready:
- Monthly sales reports and future sales projections
- Bank statements from the last 3–6 months
- Tax returns and financial statements
- Inventory records
- Cash flow statements
- Documentation of debts and liabilities
Key Store Metrics to Watch
Your store's performance metrics play a big role in determining funding eligibility. Focus on these areas:
| Performance Area | Key Metrics | Impact on Funding |
|---|---|---|
| Sales History | Monthly revenue, order frequency | A major factor in eligibility |
| Customer Experience | Return rate, customer engagement | Can improve approval chances |
| Payment Performance | Failed payments, chargeback ratio | Affects terms offered |
| Platform Usage | Account age, activity levels | Shows business stability |
Use these metrics to align your funding strategy with areas that need growth or improvement.
Setting Clear Goals for Funding
Businesses with specific financial plans are 16% more likely to succeed. Define measurable goals that match your growth strategy. Think about how you’ll allocate funding in these areas:
| Funding Purpose | Planning Considerations | Success Metrics |
|---|---|---|
| Inventory Investment | Factor in seasonal trends and lead times | Inventory turnover rate |
| Marketing Expansion | Evaluate campaign ROI and potential reach | Customer acquisition cost |
| Operations Scaling | Assess staffing and infrastructure needs | Operational efficiency |
Cash flow problems are a major challenge for businesses, contributing to 82% of failures. To avoid this, take these steps:
-
Set Clear Objectives
Review your current financial situation and outline specific growth targets. -
Plan and Monitor Progress
Determine the total funding required - covering inventory, marketing, operations, and reserves - and track performance indicators to ensure the funds are used effectively.
Conclusion: Making Your Funding Choice
Key Takeaways
Choosing funding that aligns with your business needs is crucial. With 82% of small businesses struggling due to poor cash flow management, selecting the right financing can make all the difference.
| Factor | Importance | Impact on Your Decision |
|---|---|---|
| Cash Flow | Influences your business's survival | Opt for repayment terms that are manageable |
| Speed of Access | Essential for time-sensitive needs | Look for funding that can be accessed within 24 hours |
| Business Metrics | Often prioritized over personal credit | Explore options tied to revenue rather than credit scores |
| Repayment Structure | Affects operational flexibility | Consider terms based on a percentage of sales |
The funding landscape in 2025 emphasizes solutions that support same-day delivery and omnichannel growth. Use these factors as a checklist when preparing your funding application.
How to Get Started
Here’s a simple roadmap to begin your funding journey:
-
Set Your Funding Goals
Think about how financing will support your business objectives. Determine how much you need and plan how you’ll use it. -
Evaluate Your Store’s Performance
Analyze key metrics like monthly revenue, customer retention, inventory turnover, and cash flow. These insights will shape your funding strategy. -
Organize Financial Documents
Gather essential records such as sales reports, bank statements, tax returns, and cash flow projections. Having these ready will streamline the application process.
Planning ahead for your financial needs is essential. The right funding can provide the flexibility and resources to navigate market changes while helping your business grow.
FAQs
What do I need to qualify for Shopify Capital in 2025?
To qualify for Shopify Capital in 2025, your store must meet specific criteria. You need to be actively subscribed to a Shopify plan and have been operational for at least three months or have made your first sale over three months ago. Additionally, your store must use Shopify Payments or an approved third-party payment provider.
Your business location is also important - eligibility is limited to stores based in the United States, Canada, the United Kingdom, or Australia, and you’ll need to ensure your currency settings match your country. Shopify also considers factors like your sales performance, customer interactions, and compliance with their Terms of Service when determining eligibility.
Focus on maintaining steady sales and a positive customer experience to improve your chances of qualifying.
What makes revenue-based funding a better option than traditional loans for Shopify sellers?
Revenue-based funding offers greater flexibility and lower risk compared to traditional loans, making it a smart choice for Shopify sellers. Instead of fixed monthly payments, repayments are tied to a percentage of your store's monthly revenue. This means payments automatically adjust based on your sales - lower during slow months and higher during busy periods.
Traditional loans, on the other hand, require fixed payments regardless of your store's performance, which can create financial stress during slower sales periods. Revenue-based funding helps Shopify sellers maintain better cash flow and reduces the pressure of meeting rigid repayment schedules, especially for businesses with seasonal or unpredictable income.
How can Shopify store owners use business grants to grow their eCommerce business?
Business grants can be a powerful tool for Shopify store owners looking to scale their operations. To use them effectively, start by identifying specific areas of your business that need funding, such as inventory expansion, marketing campaigns, or technology upgrades. Having a clear plan for how the funds will be allocated can help maximize the impact of the grant.
Once you receive a grant, focus on measurable goals to track its effectiveness. For example, if the grant is used for advertising, monitor metrics like customer acquisition cost (CAC) and return on ad spend (ROAS). This ensures the funding drives tangible growth. Lastly, keep detailed records of how the grant is spent, as many programs require reporting to ensure compliance and accountability.
